Episode #18 - Zencity - Scaling Up a SaaS Platform for Cities to Address Citizen Needs (profitably!) - Eyal Feder-Levy CEO/co-Founder

Background - Eyal Feder-Levy, CEO and co-founder of Zencity, joins me on the ScaleApp Podcasts to discuss the journey from his community-building nonprofit work in Tel Aviv to building the largest provider of community engagement software for local governments. Zencity operates in six countries, serving over 400 agencies and 200 million residents with sales “deep into double digit millions.” Feder’s passion for local government, fueled by grassroots community work, shaped Zencity’s vision to help city leaders measure and respond to residents’ needs with data-driven insights.

Key Themes

- Mission-driven growth: Balancing passion for improving local government with building a scalable vertical SaaS company.
- Sales as a science: Founder-led sales transitioning to a structured, metrics-driven sales organization.
- Leadership evolution: Adapting leadership teams to different stages of growth and making tough personnel decisions quickly.
- Inorganic growth: Leveraging acquisitions to complement organic expansion, with cultural and customer alignment as key factors.
- Global expansion: Initially prioritizing English-speaking markets, while addressing common local government challenges worldwide.

Takeaways

1. Successful scaling in mission-driven sectors requires striking a balance of focus on business fundamentals and the mission itself.
 2. Founder involvement in early sales is critical, but transitioning to a professional sales team is essential for scale.
 3. Leadership needs evolve with company growth; skills that work in early stages may not fit later stages.
 4. Well-integrated acquisitions can accelerate market presence and product capabilities.
 5. Understanding and quantifying community sentiment provides a critical performance metric for local governments.

My Favorite Quotes

1. “Sales is not art, it’s science. You win or lose by how well you manage the process and track the numbers.”
 2. “In leadership roles, you expect people to be A+. You can’t be B+ in a role like that.”
 3. “You don’t let people go when they are crushing it, obviously. Problems are usually visible to everyone.”
 4. “Acquisitions can be an incredible boost of energy—if you already have a healthy, fast-moving ship.”