Introduction

Orgnostic, a People Analytics platform founded by Luka Babić and Igor Bogićević, is a shining example of what Serbian startups can achieve with the right support and connections. Born from the fertile ground of the Serbian Entrepreneurs network and backed by 5th Quarter Ventures, Orgnostic’s journey from Belgrade to global impact and eventual acquisition by Culture Amp speaks volumes about resilience, adaptability, and the power of community. In this article, we dive into Orgnostic’s path from startup to exit, exploring how the co-founders navigated early challenges, fundraising during a pandemic, and strategic decisions that led to their acquisition.

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Orgnostic’s Founding Story: A Data-Driven Mission

The origin of Orgnostic stems from both Luka’s and Igor’s personal experiences working with large organizations. Both struggled with understanding how organizational data could be used to improve hiring, employee engagement, and overall people management.

“We had all this different data around HR, but it was sitting in different applications that we couldn’t make sense of,” says Luka. “The idea was to build scalable infrastructure to capture data from the moment someone is a candidate to their entire employee lifecycle.”

This mission attracted early interest from their network, especially within Serbian Entrepreneurs, where the founders first met and where their concept began to take shape.

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The Role of Serbian Entrepreneurs and 5th Quarter Ventures

Orgnostic’s journey began within the community of Serbian Entrepreneurs, a global network designed to foster connections and support startups from the region. Luka and Igor credit the organization for being instrumental at the earliest stages of their journey.

“We met at a Serbian Entrepreneurs event,” Igor recalls. “We started brainstorming, and soon after, we had a one-pager and were showing it at events in the U.S.”

Both founders highlight how key figures from the network, including their own connections, were instrumental in their growth. 5th Quarter Ventures, an early investor in Orgnostic, believed in the company’s mission and provided critical funding before the company was able to attract institutional investors.

“5th Quarter Ventures was there for us early on when we were fundraising during COVID,” says Luka.

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Navigating Fundraising During COVID-19: Challenges and Successes

^Securing funding was especially tricky during the COVID-19 pandemic, but Orgnostic’s value proposition in the HR space became even more relevant. With the rise of remote work, companies were desperate to understand their employees’ engagement and productivity. This shift gave Orgnostic a competitive edge, but the challenges of raising capital from Belgrade without in-person meetings were significant.

“We fundraised remotely and never met our lead investors in person,” says Igor. “COVID forced us to operate differently, and it turned out to be an advantage.”

5th Quarter Ventures’ role in helping them navigate the fundraising process during such uncertain times was crucial.

“5th Quarter Ventures provided us with support when it came to understanding what institutional investors were looking for and how to position ourselves,” Luka adds.

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Staying in Belgrade: A Strategic Decision

Unlike many startups that move closer to their target markets, Luka and Igor made a conscious decision to keep Orgnostic’s base in Belgrade. This decision was shaped by the strength of their network and the opportunities they saw in the region.

“We didn’t feel like we had to relocate,” says Luka. “Our team and our network were in Belgrade, and with the rise of remote work, being physically close to our customers became less critical.”

Despite the challenges of being away from the key tech hubs like San Francisco, they leveraged their Serbian Entrepreneurs network to stay connected with investors and customers, proving that Serbian companies could thrive on a global scale without having to move abroad.

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Technical Challenges and Engineering Innovations

Igor, with his experience working on complex technical problems at Seven Bridges and Vast, approached Orgnostic’s technical challenges with confidence. The platform’s unique value came from its ability to normalize and make sense of highly heterogeneous HR data.

“We dealt with multi-dimensional, dirty data,” Igor explains. “The challenge was to make disparate data sources talk to each other and extract meaningful insights about an organization.”

His deep technical knowledge, combined with Luka’s operational experience in scaling HR functions, allowed them to tackle these problems and build a robust solution that appealed to both mid-market companies and larger enterprises.

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Pivot to Enterprise Sales: Surviving a Market Shift

By 2022, Orgnostic faced a critical juncture. The HR tech market had changed dramatically due to widespread layoffs and budget cuts, especially among the mid-market companies they initially targeted. Rather than folding under the pressure, Luka and Igor made the difficult decision to pivot to enterprise sales, targeting large enterprises.

“We realized that we had to shift our focus from mid-market to enterprise clients if we wanted to survive,” Luka reflects. “It was a massive lift, but it paid off.”

This pivot required a rapid build-out of enterprise-level features, but Igor and the engineering team were up to the task, drawing from their experience scaling companies like Seven Bridges.

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The Culture Amp Acquisition: Timing, Strategy, and Synergy

In the summer of 2022, Orgnostic received an unexpected acquisition offer from Culture Amp, a leading HR technology company. Initially, Luka and Igor viewed the acquisition as one potential avenue for scaling, rather than as an exit. The goal was to explore all options—whether raising another round, continuing independently, or joining a strategic partner.

“We weren’t ready to give up on the mission, but we saw the synergy with Culture Amp,” says Luka. “Their platform and customer base aligned perfectly with what we were building.”

After careful consideration, the acquisition went ahead, providing a faster path to market expansion, access to a larger customer base, and much-needed resources.

“It wasn’t just about selling the company,” Igor adds. “It was about accelerating our mission and ensuring a stronger future for Orgnostic within a company we trusted.”

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Post-Acquisition: Integration and Scaling the Vision

Following the acquisition, both founders joined Culture Amp—Luka as VP of Product and Igor as VP of Engineering—where they continued to develop Orgnostic’s core features as part of the larger platform. The integration allowed them to leverage Culture Amp’s vast resources and sales team, expanding Orgnostic’s reach to a broader audience.

“We went from one salesperson to 300 overnight,” Luka explains. “It was an exciting, but also challenging, transition.”

The Belgrade office also became a significant hub for Culture Amp, expanding its engineering and product capabilities.

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Looking Back: Lessons Learned and Advice for Founders

Reflecting on their journey, both Luka and Igor emphasize the importance of strong networks, strategic pivots, and the willingness to take risks. Luka’s advice to his younger self? Move to enterprise sales sooner.

“I was overly optimistic about the mid-market,” Luka admits. “Shifting to enterprise earlier would have saved us some headaches.”

Igor, on the other hand, highlights the importance of being careful with fundraising:

“Raise just what you need and be realistic about valuations. Too much money can be a trap.”

Both founders also stress the importance of community and support networks, particularly Serbian Entrepreneurs, which played a vital role in their journey.

“The Serbian startup ecosystem has grown a lot, but there’s still room for more ambition,” Igor notes. “We need founders who think bigger and look beyond local markets.”

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Conclusion: A Testament to Serbian Innovation

Orgnostic’s story is not just one of success; it’s a story of resilience, adaptability, and the power of connections. By staying grounded in their Belgrade roots while tapping into global networks through Serbian Entrepreneurs and 5th Quarter Ventures, Luka and Igor built a company that not only survived challenging times but thrived and ultimately found a perfect home in Culture Amp.

Their journey offers valuable lessons for the next generation of Serbian entrepreneurs: stay connected, think globally, and always be ready to pivot when the market demands it.