Six figure SaaS raised too much money looking for exit

searcher profile

September 22, 2021

by a searcher from University of California, Los Angeles in La Jolla, San Diego, CA, USA

My friend has a SaaS company with ~$125k ARR over 6 customers. The company has been going for a few years and raised too much money from investors ($4M). It’s too small for the headache of any real acquirers. My friend doesn’t necessarily want to walk away but unsure of his options.

The investors will have to write off everything and walk away. Trying to think of a way that they can keep supporting it and hit “restart”. I’m looking to help a friend, no personal gain for me.

Any thoughts on a home? Thanks!

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commentor profile
Reply by a professional
from Bentley College in Miami, FL, USA
I see a lot of these types of listings on MicroAcquire. I think it's actually a common situation. Your friend can just sell the business and be done with it. Investors lose their money but that's just another day in startup investing.
commentor profile
Reply by a professional
from Georgia Institute of Technology in Atlanta, GA, United States
Holly cow. They have raised that much money and only achieved $125k in ARR?!! The best advise is walk away. You are putting money in a black hole. That ARR won't even cover your basic costs.
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