Loops

How Two Founders Built an Email Tool to $731K Revenue in 2 Years

February 14th, 2025

Founded By

Chris Frantz

Monthly Revenue

$61K

Founders

Employees

3 (est.)

Year Started

2022

Customer

B2B & B2C

Founded By
Chris Frantz: Monthly Revenue
$61K

Founders
2: Employees
3 (est.)

Year Started
2022: Customer
B2B & B2C

Who is Chris Frantz?

Chris Frantz, the co-founder and CEO of Loops, is an experienced entrepreneur from Maryland with a background in bootstrapping and previously founded and sold Snazzy AI to Unbounce. He has been through Y Combinator and emphasizes the importance of focusing on solving user problems to build successful startups.

What problem does Loops solve?

Loops addresses the frustration SaaS companies face with outdated, clunky email tools by providing a sleek, efficient platform that simplifies user communication. By focusing solely on essential email functions, Loops delivers a user-friendly experience that saves time, making it an indispensable tool for software companies needing hassle-free email solutions.

How did Chris come up with the idea for Loops?

Chris Frantz and his team came up with the idea for Loops during their experience exploring various startup ideas at Y Combinator. They noticed that every idea they considered required an email solution. However, the current options were outdated, overly complex, and lacking in modern features like dark mode and mobile support. These observations sparked the realization that there was a need for a better email platform specifically for SaaS companies.

Before fully committing, they conducted customer interviews and feedback sessions to understand the pain points SaaS companies faced with existing email tools. These efforts confirmed their initial thoughts and pointed out specific areas for improvement, helping them shape the product. Despite early-stage challenges typical in ideation, such as defining the core value proposition, the team's focused approach and willingness to iterate based on customer insights set them on the right path.

Overcoming challenges in differentiating their product in a market with established players required them to prioritize product simplicity and usability. Frantz's background in analyzing trends and user behavior was instrumental in refining Loops into a focused, user-friendly product, emphasizing the importance of doing the hard, nuanced work of understanding and solving real user problems.

How did Chris Frantz build the initial version of Loops?

Chris Frantz and his co-founder built Loops using a combination of customer feedback and lean development processes. They started with a minimal feature set and held over 300 customer calls to understand exactly what their users needed, completing more than 100 calls before launching the first version. This approach allowed them to sign up their first users even before their email service was fully functional. They emphasized paid validation, asking their alpha users to pay for the product to ensure there was a real problem being solved. Development was accelerated by their participation in Y Combinator, which also provided the financial backing necessary to hire a team of skilled engineers. The founders encountered the typical challenges of early-stage development, such as dealing with extensive user feedback and prioritizing feature requests, but managed these through a focused, methodical approach to building and iterating the product.

What were the initial startup costs for Loops?

Funding: Loops raised $3.2 million in a seed round in April 2022.

What was the growth strategy for Loops and how did they scale?

Partnerships

Loops engaged in strategic partnerships with influential figures and companies which helped them gain credibility and exposure. They were supported by Y Combinator and Craft Ventures, as well as founders from companies like Dropbox, Lattice, and Codecademy. These partnerships allowed Loops to tap into an extensive network of potential users and industry insights.

Why it worked: Being associated with well-known entities and individuals lent Loops a sense of trustworthiness early on, attracting initial customers who might have been hesitant about a new email service. This association also provided Loops with valuable advice and mentorship, accelerating their growth trajectory.

Product-Led Growth

Loops focused on creating a robust, user-friendly email platform that addressed the frustrations users had with existing tools. By delivering a product that simplified complex processes and offered a seamless experience, they prioritized user satisfaction and organic growth over traditional marketing.

Why it worked: By centering their growth strategy around a strong product, Loops encouraged word-of-mouth recommendations and user advocacy. Happy users became their marketers, as they shared their positive experiences with peers in the SaaS community, driving new signups and increasing their customer base.

Direct Sales and Customer Engagement

The company prioritized having hundreds of customer calls and onboarding each user individually, even before launching a full version of their product. This hands-on approach enabled them to gain precise insights into customer needs, iteratively improve their product, and build strong relationships with early adopters.

Why it worked: Personal engagement with customers allowed Loops to gather immediate feedback and foster loyalty. By deeply understanding their users' pain points, they were able to refine product features in alignment with actual needs, leading to higher conversion rates and customer retention.

What's the pricing strategy for Loops?

Loops utilizes a usage-based pricing model, with plans starting at $100 per month, encouraging users to pay from the start to ensure commitment and align with their business needs.

What were the biggest lessons learned from building Loops?

Do the Hard Things: Chris Frantz emphasizes doing the unglamorous tasks that others avoid, like fixing bugs or making tough sales calls, and this persistence pays off in business success.
Focus Over Diversification: From past experiences, Chris learned that focusing on one project yields better results than spreading thin across multiple ventures. A single focus can lead to rapid growth and success.
Charge from the Start: Chris suggests charging for your product from the beginning to understand customer value and avoid noise from free users who aren't committed to paying.
Be Ready for Fundraising: Successfully secured funding by preparing answers to all potential investor questions upfront, demonstrating confidence and preparedness.
Hire with Trust and Belief: During hiring, Chris highlights the importance of believing deeply in your vision to convince talented individuals to join, especially when they may be giving up more stable opportunities.

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