We Venture Differently
We're the anti-VC. We're not unicorn hunters and don't believe in high burn, uneconomic models that reach for market share. We look for solid businesses built by founders who are cash efficient, scrappy, and pragmatic. We focus on companies with $2mm+ of run-rate revenue and year over year growth of 50%+. We'll invest anywhere in the US or Canada, especially in markets most venture capital firms overlook. We prefer leading $1mm to $5mm Series A or B rounds, but can also follow. We like plain-vanilla preferred stock in traditional growth rounds, inside rounds, recaps, secondaries, and restructurings.
Our portfolio is diverse and includes HR software, app tech, parking, sales and marketing software, apps, greeting cards, dating, e-commerce, and healthcare software. We love tech, but will invest in low or no tech opportunities that scale.
The Blossom Street
Negotiating with your VC
I just read a book called Never Split the Difference by Chris Voss. Chris was one of the premiere FBI Hostage Negotiators in the world, and his tactics could be useful for negotiating with customers, vendors, and of course your VC. Excerpts from the book are below. Create warmth by using first names. “I’m…
The 12 commandments of customer success
We’ve had the good fortune of learning from and investing in SaaS businesses with excellent customer retention and upsells. Below are some of the key learnings we’ve gathered over time. The Customer Success Team is not the only group in charge of customer success. Preventing churn is everybody’s job, so your engineers should talk…
SaaS valuations fall to 8x+, but are still high
Valuations for SaaS came down in July, but are still high: of the 76 SaaS companies we follow, the average public SaaS business is trading at 9.25x revenue while the median is 8.31x. The data is below. Negative EBITDA, positive cash flow. The median SaaS business had trailing twelve month revenue of $314mm,…
Life in an accelerator, continued
This post was originally published in June, but is updated in the section entitled “part 2” A good friend of mine named Joe Shiraz is taking his company, ServiceBot, through an accelerator based in Memphis that is backed by Start Co and ServiceMaster, one of the largest home services companies in the nation. The…
Subscribe to Our Blog
Never miss a post.