$1m ARR B2B SaaS w/150% YoY Growth - YC Alumni

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March 19, 2024

by a searcher from Babson College - F.W. Olin Graduate School in Waterloo, ON, Canada

We are Y Combinator alumni with a previous 8-figure exit in the HR tech space. We acquire and operate "venture-detox" companies that have raised VC $$$, and built a solid business, but are no longer on a unicorn trajectory. We have the following deal under LOI right now, and are looking for investment: - B2B SaaS company in HR technology; we understand this space incredibly well given our last exit was in HR tech - $1m in ARR w/150% YoY growth - $40k ACV, 140% net dollar retention - $6.5m acquisition price, with $4.5m in cash and $2m on a seller note - The founders have done very well for themselves, but are burned out on the space and want to move onto something else - We have an experienced "sales CEO" identified who would run day-to-day operations of the company and build out its outbound sales team (exclusively founder-led sales so far) - We're targeting a 35%+ IRR for investors based on our planned capital structure, but with significant additional upside if we can maintain existing growth
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from Kennesaw State University in Atlanta, GA, USA
^redacted‌, this sounds like a great opportunity. I won't be able to invest as I'm actively searching but I'd be happy to connect you with Jason Foodman who might either be interested in investing or a good CEO/President for another company you purchase.

My background is in tech building/scaling CS teams. Last company was with grew 15,000% and the CS team grew to 35. If you'd like to brainstorm client retention/expansion strategies, let me know. Happy to help.
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Reply by a searcher
from Massachusetts Institute of Technology in Tel Aviv-Yafo, Israel
Only thing I can say is that I was trying to acquire a business with that benchmark and roll it up into mine on a “strategic roll up” game plan, and unfortunately, those revenue marks are too low for institutional investors to get excited. My belief is that the secret is in strategic angel investors for this one, or a very specific institutional investor with a strategic approach to acquire the target from you after you will have grown it more, at a discounted price given their investment.
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