Sneak peek at future of SaaS investing
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Sneak peek at future of SaaS investing
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Re: Sneak peek at future of SaaS investing
#2I see more and more investors looking to do this especially as a solo-founder of a bootstrapped small SaaS business. As I march towards $1M ARR, the savvy investors are looking for ways to be valuable to my business as opposed to me begging investors for the next round of funding in traditional VC-backed ventures.
I would be very happy to share 15-20% if the value-add is strong enough.
Re: Sneak peek at future of SaaS investing
#3I see more and more investors looking to do this especially as a solo-founder of a bootstrapped small SaaS business. As I march towards $1M ARR, the savvy investors are looking for ways to be valuable to my business as opposed to me begging investors for the next round of funding in traditional VC-backed ventures. I would be very happy to share 15-20% if the value-add is strong enough.
What does that value add look like to you?
I own a few SaaS sites that I bought (because I don’t have the patience and focus to build one myself) that I then work to increase the value of (based on lessons from a previous SaaS company I worked at), and I’m always interested in private equity arrangements.
Re: Sneak peek at future of SaaS investing
#4All of the unnecessary punctuation makes this article difficult to read.
Re: Sneak peek at future of SaaS investing
#5I see more and more investors looking to do this especially as a solo-founder of a bootstrapped small SaaS business. As I march towards $1M ARR, the savvy investors are looking for ways to be valuable to my business as opposed to me begging investors for the next round of funding in traditional VC-backed ventures. I would be very happy to share 15-20% if the value-add is strong enough.
What does that value add look like to you? I own a few SaaS sites that I bought (because I don’t have the patience and focus to build one myself) that I then work to increase the value of (based on lessons from a previous SaaS company I worked at), and I’m always interested in private equity arrangements.
What are some of the strategies that you use to increase value post-acquisition?
Do you mostly try to twist the dials a bit to boost net margins, e.g. increasing automation for a product that is "already written" and can go on maintenance mode, or is it something more nuanced? I'm super interested in this topic as I've been building out 2 pretty neat SaaS products (basically web APIs that solve concrete problems for developers, similar to a Stripe or Twilio model, but for an industry that is not quite as open as telecommunications/payments) and I'd love to hear how investors look at this segment. Thanks in advance!
Re: Sneak peek at future of SaaS investing
#6Investment opportunities that provide 15% return exist in the public markets with easy liquidity options, so what is the benefit of trying to squeeze that out of a private company where you can’t sell unless the company goes public or you try to find a buyer on the secondary market? Unless the company pays out a dividend I don’t see the appeal - usually VCs trade liquidity for the hope of massive returns that aren’t typically found in public markets.
Re: Sneak peek at future of SaaS investing
#7Look at the return vs return std dev graph. The fact that fund of fund beats VC on both metrics suggest VCs add negative value
Re: Sneak peek at future of SaaS investing
#8Investment opportunities that provide 15% return exist in the public markets with easy liquidity options, so what is the benefit of trying to squeeze that out of a private company where you can’t sell unless the company goes public or you try to find a buyer on the secondary market? Unless the company pays out a dividend I don’t see the appeal - usually VCs trade liquidity for the hope of massive returns that aren’t…
What public investment continuously returns 15% yearly?
Re: Sneak peek at future of SaaS investing
#9Investment opportunities that provide 15% return exist in the public markets with easy liquidity options, so what is the benefit of trying to squeeze that out of a private company where you can’t sell unless the company goes public or you try to find a buyer on the secondary market? Unless the company pays out a dividend I don’t see the appeal - usually VCs trade liquidity for the hope of massive returns that aren’t…
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Re: Sneak peek at future of SaaS investing
#10Tiny capital is relative.
EDIT: It's also the name of the VC firm. D'oh! Keeping the rest for posterity.
Notice how there’s no actual values for what “tiny” means?
If you have cash to invest on a VC company, you’re most likely already quite well off, with an equal amount invested in less risky ventures.