Kellan Carter

Since early 2021, VC quarterly exit values have plummeted to $50B or below, a stark contrast to the six consecutive quarters of $100B+ exits before then. With IPOs dwindling and M&A activity slow, the future of venture industry exits appears uncertain. Will we see a surge in private venture-backed company acquisitions? This could be a crucial and innovative strategy to boost VC exits. Increased private acquisitions might offer a much-needed lifeline, providing a creative solution to the current exit drought in the venture capital market. #venturecapital #inspireglobalventures

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Listen to the full episode here: https://lnkd.in/gB7TZRJz Is a million-dollar exit turning into a tax headache? Software founders, Robert Piechota of Alvarez & Marsal with Lisa Calhoun of Valor VC break down transaction tax and how to be acquisition-ready on our podcast episode last Tuesday. Listen & avoid LOI price drops! #startups #taxes #acquisition

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This week on Founders Insights, our team provides insights on current trends and M&A activity taking place in the SaaS market, including: • Key Themes for 2025 • Silicon Y’all 2024 Recap • Notable Recent Transactions • Operating Statistics • Balance Sheet Metrics • Founders Technology Transactions If you or someone you know have questions regarding anything discussed, or the general SaaS marketplace, please feel free to reach out to Billy Pritchard, Director of Founders’ Tech & Business Services Group.

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Great analysis by the AGC team on SaaS public company comps. It's worth a look as we recalibrate mid-way through earnings season. The analysis aligns with the broader Nasdaq equity performance, where the Mag 7 (or fab 4 now :-)) have shown more resilience than the rest of the market. #AGC #SaaS #EarningsSeason #Nasdaq #EquityPerformance

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PE - PE Acceleration Toolkit (i.e. not Playbook) What commercial, GTM and growth areas do you cover in your "PE Portfolio Company Toolkit" (i.e. some funds like Vista Equity Partners call it a Playbook but I refer to it as toolkit with the aim of it being a participatory, not a prescriptive playbook)? Some ideas* come to mind - what else? (* i.e. Commercial/GTM/Revenue Growth - not including Product, Engineering, R&D and other functions) 1. Sales Optimization   - Sales Org Structure   - Sales Management Process   - Sales Prospecting & Outbound   - Sales Process Engineering - Pipeline Management - Forecasting & Commit Process - Forecasting Rollups - CEO & Board   - Sales performance metrics and KPIs   - Channel Sales, Partner and alliance programs   - Rev Ops & Sales Enablement   - Sales Quota, Compensation & Incentives   - Sales Tech & Automation 2. Marketing Optimization   - B2B Demand Generation strategy   - Marketing Management - Marketing Process Engineering - Defining Lead Nomenclature - Campaign Management - Strategic Messaging Architecture   - PLG - Product Led Growth   - Digital & Inbound marketing    - Account-based marketing (ABM) - Customer Marketing - Product Marketing - Marketing/Sales Alignment & SLAs   - Marketing Metrics / KPIs   - Marketing Tech & Automation 3. Customer Management, Success and Retention   - Customer onboarding processes   - VOC - collecting and analyzing customer feedback   - Customer Segmentation   - Customer Management Processes   - Proactive customer Engagement   - AM & Expansion Sales   - Renewal strategies   - Customer loyalty strategies   - Customer support optimization   - Customer metrics and KPIs 4. Pricing and Packaging   - Pricing strategies   - Value-based pricing   - Discounting strategies & pricing transparency   - Subscription and usage-based models   - Pricing experimentation and A/B testing   - Competitive pricing analysis 5. Operational Efficiency   - SaaS metrics (CAC, LTV, churn rate, etc.)   - Process automation and workflow optimization 6. Talent & Culture   - Leadership & Management    - Attracting and retaining top talent   - Building a high-performance culture   - Performance Management   - Remote work best practices   - Continuous learning and development 7. Community Building   - Community creation & engagement   - Building an ecosystem around the product   - Customer Advocacy Programs 8. Data and Analytics   - Data-driven decision-making   - Business intelligence (BI) tools and dashboards   - Data governance, security and privacy   - AI applications Other: 9. Product (& GTM Alignment) 10. M&A (Commercial/GTM integration) 11. Finance (Supporting the GTM org) 12. GTM Board Updates & KPIs 13. Etc. ------------------ #pe #privateequity #business

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A massive opportunity in the lending space is rarely discussed. Vertical and Horizontal SaaS companies have been rising to the challenge of financing their already captivated clientele with embedded lending. In our latest post, we dive into: ✅ Embedded lending and the market opportunity ✅ Why SaaS companies are a perfect fit ✅ Some real-world examples of what success looks like ✅ The types of embedded lending and how you can offer them Read it in full --> https://lnkd.in/gVAWs7xZ More to come in our Deep Dive with Alex Johnson next week. Be sure to subscribe to his newsletter, Fintech Takes so you don't miss out!

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Want to make your business more attractive to buyers? Focus on one thing: Recurring Revenue. Recurring revenue isn’t just another income stream—it’s the backbone of long-term success. According to a Forbes study, businesses with strong recurring revenue, especially SaaS companies, are seeing 3x higher valuations compared to those dependent on one-off sales. As discussed in the Forbes Tech Council, despite the SaaS development challenges in 2024, companies focusing on subscription models and long-term contracts are leading the way. Here’s why: Stable Cash Flow: Recurring revenue gives you consistent income, which translates to peace of mind. Enhanced Valuation: Buyers love businesses with predictable revenue—they see lower risk. Customer Retention: Strong recurring revenue often reflects deeper customer loyalty and long-term relationships. Curious about how recurring revenue can boost your business’s value? Let’s chat. 👉 https://lnkd.in/gDct67gU #BusinessGrowth #RecurringRevenue #SaaS #Valuation #FinancialSuccess #Forbes #PGAdvisors #ForbesTechCouncil #ProfitandGrowth

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Teal Announces $8M Seed Investment to Drive Next-Gen Accounting Products for Vertical SaaS “Teal is building the Stripe for accounting. Just like Stripe provides the underlying infrastructure for Vertical SaaS companies to build payments products, Teal provides the infrastructure for Vertical SaaS companies to build and offer accounting features within their platforms,” said Ian Crosby, Co-Founder and CEO of Teal. “Having led Bench Accounting, the largest bookkeeping service for SMBs for a decade, I saw firsthand the limitations of standalone accounting software that is not integrated into the rest of a business’ core platform. We built Teal to address this problem.” https://lnkd.in/eYj83HDB Katie Reiner #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Should you prioritize strategy over IRR? According to Keith Levy, Operating Partner at Sonoma Brands Capital, it has to be both. Strategy drives investments, but if the project doesn't have good IRR, it’s not going anywhere. Learn more about maximizing financial performance and capital allocation strategies here: https://hubs.ly/Q02tzzRb0 #Mergersandacquisitions #CapitalAllocation #Recapitalization #ExitStrategy

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Should you prioritize strategy over IRR? According to Keith Levy, Operating Partner at Sonoma Brands Capital, it has to be both. Strategy drives investments, but if the project doesn't have good IRR, it’s not going anywhere. Learn more about maximizing financial performance and capital allocation strategies here: https://hubs.ly/Q02tzzRb0 #MergersAcquisitions #CapitalAllocation #Divestitures #Recapitalization #CorporateDevelopment

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SaaS M&A deal volume is forecasted to rise. Here are the latest insights from our new quarterly report: 1. The percentage of SEG SaaS Index™ companies trading at >12.5x EV/TTM revenue multiples climbed from 5% in 1Q23 to 16% in 1Q24. 2. Multiple categories in the Index showed higher median EV/TTM revenue multiples in 1Q24 compared to 1Q23. 3. SaaS M&A activity remained robust annually, with 2023 being the second-highest year recorded. 4. Healthcare and Financial Services emerged as the most active verticals (16% and 15% of SaaS deals, respectively). 5. PE investors continued to dominate, representing 59% of SaaS M&A deals in 1Q24. These findings represent just a snapshot of the broader trends unfolding within the SaaS industry. For more detailed insights, access the full report directly here: https://lnkd.in/eXMqcd5u #mna #saasmna #softwaremna

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Last week, we shared the first part (1/2) of our perspectives on vertical SaaS (vSaaS), more specifically on which metrics define the performance of vSaaS businesses and outlining the benchmarks for each of these metrics. If you have not yet read the piece, give it a read here - https://lnkd.in/d94n2bgN This week we published the second part (2/2) where we call out certain strategies deployed by successful vSaaS companies like Procore Technologies Toast ServiceNow Zenoti and others that can be used to improve the metrics that matter. Read on to layer the numbers with the strats- https://lnkd.in/dPkmWFax Do reach out if you are building in the space or want to exchange notes / feedback on the perspectives. #fintech #verticaSaaS #embeddedfinance #investments

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Thrilled to announce the launch of our inaugural edition of Beyond Benchmarks at Emergence Capital. This comprehensive report dives deep into the metrics and trends shaping the early-stage enterprise cloud market. A huge thank you to our VC partners and contributors for making this possible! Here's a sneak peek of our findings: --> 60% of companies have already integrated GenAI into their service offerings, with another 20% planning to do so this year. --> While most companies use OpenAI as their primary LLM, many are experimenting with multiple models. We’re seeing a trend toward intelligently routing GenAI inference requests based on cost, performance, and security. --> Companies that have implemented GenAI are showing promising results, with a 7% higher NDR compared to those that haven’t. Beyond Benchmarks goes further with more GenAI trends, insights on the current fundraising environment, and key performance metrics. Our goal is to provide founders and their teams with valuable benchmarks to help them make better-informed decisions. At Emergence Capital, we're committed to helping founders build iconic companies. Dive into the full report here: https://lnkd.in/g6bnvAZM

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New data on the average deal size for private SaaS Companies. Key Takeaways: - The overall median Annual Contract Value (ACV) for private SaaS companies is $22,357. However, ACV varies significantly by company size, with larger companies generally having higher ACVs. - ACV grows with company size due to factors like product maturity, expanded offerings, and targeting larger customers. For example, companies with $1–$3M ARR have a median ACV of $21,583, while those with $5–$10M ARR show a median ACV of $33,704. - Higher Net Revenue Retention (NRR) correlates with higher ACVs, as successful upselling, price increases, and cross-selling drive growth. - Equity-backed SaaS companies have higher ACVs and ARR than bootstrapped companies. Full data: https://lnkd.in/eXEgNWFc

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Scale Venture Partners spoke with BILL CEO & Founder René Lacerte to discover what it takes to be successful in fintech, what matters when unlocking GTM in vertical software, and what it's like on the other side of the boardroom. Read his insights here: https://bit.ly/3KkxMNd

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📊 Exploring SaaS financing? Don’t miss the founder and CEO of Bigfoot Capital Brian Parks’ latest episode on the Scale Your SaaS, where he tackles the topic of debt vs. equity financing for SaaS companies. Brian offers expert insights into the pros and cons of each approach, helping you navigate your options and make the best choice for scaling your SaaS business. Brian’s analysis and expertise shines a light on how SaaS companies can make strategic financial decisions to fuel growth. Listen here: https://buff.ly/3AWv52Q . . . . #SaaSFinancing #DebtVsEquity #BrianParks #MattWolach #ScaleYourSaaS #BCPR #FinancialStrategy

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Series A or B wondering when to bring in a VP of Finance or CFO? It’s a crucial decision that can shape the future of your company. At this stage, financial leadership is not just about managing numbers but also scaling processes, securing funding, and driving strategic growth. My colleague Paul breaks down key signs that it’s time to hire and indicators for choosing between VP of Finance and a CFO #FinanceLeadership #CFO #StartupGrowth #SeriesA #SeriesB #NextGenLeadership

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