Upflex’s $25M Series A: How Christophe Overcame Scaling Challenges

Every founder dreams of scaling their business, but growth often comes with tough decisions—especially in volatile markets. For Christophe Garnier, Co-founder and CEO of Upflex, the past 18 months brought a harsh reality: to save his company, he had to make painful cuts.
In this episode of SaaS Founder Stories, hosted by David Brennan, CEO of Arkeo AI, Christophe shares his experience navigating layoffs, adapting to market shifts, and learning hard lessons about leadership during challenging times. His story offers invaluable insights for SaaS founders who may one day face similar crossroads.
The Challenge: Scaling with the Wrong Assumptions
In its early stages, Upflex raised $25 million in a Series A round and set out to expand aggressively, planning for a Series B to continue fueling growth. But when the VC market collapsed, Christophe found himself running a business with a burn rate that was unsustainable without fresh capital.
"We were spending based on the assumption we’d raise more, but that Series B never happened," Christophe explained.
To keep the company afloat, he had to make the difficult decision to reduce the team by 50%.
The Mistake: Delaying Tough Decisions
Initially, Christophe resisted making drastic cuts. After consulting his board and investors—many of whom were former entrepreneurs—he knew layoffs were necessary. However, instead of making a single decisive move, he tried to save as many employees as possible by conducting layoffs in two phases.
"That was a mistake. Having multiple waves of layoffs created more uncertainty and hurt morale even further."
Christophe’s experience highlights the importance of acting decisively when difficult decisions are unavoidable.
The Recovery: Rebuilding Trust and Focusing on Strengths
Once the cuts were made, Christophe turned his focus to stabilizing and rebuilding Upflex. The company doubled down on its strengths, streamlining operations, automating processes, and maintaining its growth trajectory with a leaner team.
"The company never stopped growing, even with half the people. That was the big lesson—we hired too fast and didn’t need such large teams."
Rebuilding trust within the remaining team was critical. Christophe prioritized one-on-one conversations with employees, addressing concerns and rebuilding confidence in the company’s direction.
Key Lessons for SaaS Founders
1. Plan for Sustainability
When raising capital, ensure your spending plans account for potential market shifts. Don’t assume the next funding round will always be there.
Takeaway: Align your growth strategy with realistic funding scenarios.
2. Act Decisively
If layoffs become necessary, it’s better to act quickly and decisively. Dragging out the process creates more uncertainty and damages morale.
Takeaway: Make tough decisions in one clear move, and communicate transparently with your team.
3. Leverage a Leaner Team
Upflex’s ability to grow with half its original team revealed inefficiencies in their earlier structure.
Takeaway: Focus on hiring for impact, not volume. Leaner teams often drive better results.
4. Rebuild Trust Through Communication
One-on-one conversations with employees helped Christophe address concerns and demonstrate his commitment to the company’s success.
Takeaway: Open, honest communication is essential to rebuilding confidence after difficult decisions.
Conclusion
Christophe Garnier’s journey with Upflex is a testament to resilience and adaptability. By making hard decisions, focusing on strengths, and leading with transparency, he navigated the company through one of its most challenging periods.
If you’re a SaaS founder facing similar challenges, ask yourself:
- Are you spending based on realistic assumptions?
- Are you prepared to make decisive moves when necessary?
- How are you communicating with your team to maintain trust and morale?
🎧 Listen to the full episode to hear Christophe’s story and gain insights into navigating tough decisions as a SaaS founder:
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