Self-funded search fund: $1-3M ARR SaaS

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October 06, 2021

by a searcher from University of Cincinnati - Carl H. Lindner College of Business in Cincinnati, OH, USA

Sharing my deck here - https://tailwind.docsend.com/view/hun8pfwz28vi3mai - open to any connections/deals/convos etc that can accelerate finding the right company. Thanks everyone! Happy to make any connections or help in any way in return!

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Reply by a searcher
from University of Cincinnati in Cincinnati, OH, USA
The founder staying is not mandatory - but they would receive equity stake in new co, albeit relatively small, the value could reach ~80% of what they walk away with via the initial sale. This is obviously very dependent on technical founder's personal career preferences. But, I have found - anecdotally - that there are elements to this that are desirable to technical founders (usually 1st time founders).
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Reply by an investor
from University of California, Berkeley in San Francisco Bay Area, CA, USA
Good thesis, but imo you need to substantially increase your 2.5x entry multiple assumption. I'm an advisor to a company with your target profile and we are getting getting 2-3 inbound calls from well funded VC, Growth Equity and strategic investors on a weekly basis. Market multiples are in the 4-12x ARR range depending on the growth rate and revenue retention metrics.
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