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

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
from Kennesaw State University in Atlanta, GA, USA
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.
from Massachusetts Institute of Technology in Tel Aviv-Yafo, Israel