Nate Nurmi’s Post

The growth chart for B2B SaaS from Paddle looks like dying aftershocks from a huge earthquake that was 2021-2022 for the industry. It's still quite hard to believe in a big bounce-back in 2024, and in this downturn, founders struggle to find new levers. However, the growth rate still affects acquisition valuations, and we'd like to share what exactly is being assessed on this front. Join us on May 2nd with Tim Heicks and Shiv Narayanan to talk about marketing due diligence in B2B SaaS acquisitions. Register with the link in the comments and prepare your questions 👇🏻

In January 2023, I got a call from my pal Isaac Morehouse‎. He told me, “Something big is happening and I want you to be a part of it.” I remember getting off the phone with butterflies in my stomach. I would join the ranks at Reveal‎, a company I’d long admired from a distance. My intuition told me that this would change my life and professional trajectory, and that the work we did as a team would leave a lasting impact on the partnership community. My gut screamed HELL YES! I was all in. My team and I jumped in right away, working side by side (and at full speed) to build a category that would change GTM as we know it. #Nearbound made waves unlike anything B2B SaaS had seen before. The narrative of surrounding buyers with trust to drive revenue resonated across companies and GTM roles. And since its explosion onto the scene, it’s continued evolving into something much bigger than Reveal or nearbound.com—bigger than anything my team and I could’ve dreamed. Why? Because it became all of ours—the community adopted it as their own, building upon the category to make it even more robust and comprehensive. And now we are entering a new chapter, and we are entering it together.  Yesterday, Crossbeam‎ and Reveal become one, combining the immense power of their networks and uniting under the Crossbeam name and #ELG —a powerful and holistic GTM strategy that operationalizes and scales nearbound plays.  But it’s not just the networks and strategy that are coming together. We’re combining our platforms, talent, and vision to create a best-of-both-worlds customer experience that includes a powerful unified data network and an innovative roadmap of products for all GTM teams. This is the biggest news to hit B2B SaaS in a long while, but I can’t help feeling a little bit of déjà vu. Because, once again, my gut is saying the same thing: HELL YES! I’m all in.  I’m incredibly proud.  And I’m so excited to work with Alex Poulos, Bob Moore‎, and our combined teams to drive even more value to you, our community of customers, partners, and friends. The most powerful movements continue to evolve. I can’t wait to see where this evolution takes us! Learn more about the merger from Bob and Simon Bouchez‎ at the link below.

Loving what the Flippa.com team are delivering right now. Top of Funnel up 57% since June! M&A for everyone mission is alive and well. 🚀 Demand Generation, Top of Funnel Growth, and M&A Readiness🚀 In today’s market, as business owners contemplate the market around them, success hinges on two things: building awareness and executing at speed. At Flippa, we’ve been laser-focused on demand generation, driving massive growth in our top-of-funnel activity. In fact, from June to September, our leads surged by 57.5%—with over 8,300 business owners expressing interest in an exit in September alone. 📈 Couple this with the 5091 owners that chose Flippa last quarter and this leaves us well placed for continued growth and gives the world's largest buyer pool an obvious place to do deals in a tricky climate. According to PwC, the first half of 2024 saw a 25% drop in global M&A deal volumes due to high interest rates, volatile markets, and economic headwinds. Many are left wondering when dealmaking will bounce back. At Flippa, we've been hitting the market head on. While others pause and talk about difficult deal making conditions, we’re building momentum and doing deals. We have now dramatically expanded demand generation initiatives and we are seeing peaks in interest. The broader M&A climate is poised for a resurgence, and we’re already primed to capitalize on that pent-up demand for SMB M&A as the fog lifts. 💡 Our approach: Top of Funnel Growth: Our focus on demand generation has grown the pipeline by nearly 60% in just four months. That’s thousands of additional business owners ready to exit through Flippa. How exactly? Damn good execution at exhilarating speed. Just the way we like it. M&A Readiness: PwC's report highlights the pent-up demand in M&A—especially in sectors like tech and SMBs. When the deal market returns on mass, we’re ready with the infrastructure, platform, expertise and a deep pipeline of quality businesses. In an environment where execution is everything, I'm pretty proud. By staying focused on growth and aligning with broader M&A dynamics, we’re ready for whatever comes next. Marketplaces are hard. M&A is hard. Winning is a choice. 💥 #DemandGen #TopOfFunnel #MergersAndAcquisitions #BusinessExits #Growth #Flippa #SMBExits #ExecutionMatters #BusinessOwners

Ever wondered what's the real deal with B2B SaaS valuations these days? 🤔 Remember the heady days of 20x+ valuations for early-stage SaaS acquisitions? Well, things have changed. The market has corrected, and we're seeing a more rational valuation landscape. But here's the kicker: the software acquisition market is still bustling, and there's a silver lining for those in the know. As a founder that has worked in software for the last decade, I've seen the ebb and flow of the investment tide. And let me tell you, bootstrapping and investing in software is still a game worth playing. Here's why: - Software acquisitions are on the rise, with a keen interest in companies under $50M. - Tech spending is booming, with a 15% annual increase. - SaaS businesses with $2M to $10M ARR are still attracting buyers willing to pay a premium. - I feel like we are one big IPO away for software multiples to start climbing again (Canva maybe?) and interest rates falling will be a catalyst. So, what's the play at the moment? Focus on steady revenue growth and efficiency. Invest in AI to streamline your operations. And remember, doubling your revenue still means doubling your company's worth, even at a 5x multiple. What's your strategy for navigating the current valuation landscape? Would love to learn about others thoughts below! #B2BSaaS #Investing #Software #Growth #Bootstrapped

I am really excited about what's happening in the European tech scene. 🇪🇺 Secondary transactions are happening and reshaping the market. The impact is real and will keep growing. ↳ Vinted just hit a $5.4B valuation through a secondary sale. ↳ Qonto is eyeing a €5bn valuation, yet with a secondary sale. ↳ The IPO market is slow but secondary transactions are here. And here's what I like the most about it. It's coming from the top. The big money managers. ↳ Vinted's $367 million secondary share sale was led by TPG. ↳ Qonto is in talks with big names like Alkeon and KKR. ↳ And more (confidential at this point) transactions are on their way! This trend is just starting and it is here to stay. It is also happening to earlier stage companies. These transactions will help early employees and investors cash out. GPs increase their D/PI and get into carry zone. And, at last, LPs get their money back. What's not to like? #venturecapital #secondaries #liquidity

Whether you're dipping your toes into SaaS acquisitions or looking to expand, understanding the diverse buyer profiles is key. Here's a quick rundown of SaaS acquirers by purchase price to identify where you fit and how to strategize: // <$250k: Side Hustlers: Look for low-maintenance, simple products. Ideal businesses demand <20 hours weekly and minimal support. // <$500k: First-Time Acquirers: With a technical/GTM background, focus on businesses matching your skills, requiring less than $500k capital. // $500k-$1M: Professional Portfolio Acquirers: Experienced? Aim for stable, recurring revenue businesses, managing 5-10 companies with 15-30% EBITDA margins. Serial Acquirers & Niche Specialists: Quick scalability or niche alignment is key, targeting businesses for growth and a perfect fit. // Over $1M: Corporate Integrators & Small Financial Sponsors: Major players seek strategic alignment, investing $3M-$10M for a 20-30% ROI. /Industry Consolidators & Strategic Diversifiers: Focus on efficiencies, market dominance, or diversifying through innovative models. A Reminder: Micro SaaS is a unique field — untouched by Institutional Private Equity and Strategics below $5M ARR, presenting a lucrative avenue for those ready to play smart. Which profile resonates with you? Whether you're aiming to buy, grow, or sell, positioning yourself correctly in the Micro SaaS universe is crucial. 👉 For a deeper dive into each buyer profile and strategic insights tailored to your journey, connect with us at Skaling Ventures. Link to substance in bio... #MicroSaaS #SaaSAcquisitions #StartupGrowth #SkalingVentures

“PEs keep asking me: ‘When are you going to bring the good stuff to market.’” Drake Star’s CEO, Gregory Bedrosian, recently discussed global #Tech M&A with Iuri Struta of S&P Global and the attached article provides a great summary of the current industry dynamics and is broadly consistent with what we are seeing at Drake Star. Here are some highlights from the article: 🔵 Strategic buyers drove a tech M&A recovery in Q1: Spending by strategic buyers exceeded $107 billion and approached levels not seen since the post-pandemic boom in tech M&A. 🔵 Private Equity is still relatively dormant: Buyout shops are still sitting on large amounts of dry powder and yet capital deployed by PEs as a percentage of all tech M&A has rarely been lower, declining from 38% in Q1 2021 to about 26% in the first three months of 2024.   🔵 High valuations for quality: More tech deals were done at outsized valuations in Q1, but valuations have stayed strong only for companies with high free cash flow levels and high growth.   🔵 Continued uptick in tech M&A activity: Market participants anticipate an uptick in tech M&A, particularly in the second half of  2024 as more tech companies are starting sales processes. #PrivateEquity #Investment #MergersAndAcquisitions 

𝐓𝐡𝐞 𝐮𝐥𝐭𝐢𝐦𝐚𝐭𝐞 𝐮𝐧𝐭𝐚𝐩𝐩𝐞𝐝 𝐫𝐞𝐬𝐨𝐮𝐫𝐜𝐞: Dormant leads. Most businesses ignore them. They focus on new acquisitions. Chase fresh contacts. But here’s the reality: Your dormant leads need immediate attention. Here’s why: 1. They’ve already shown interest. 2. Re-engagement is cheaper than new acquisition. 3. They’re a shortcut to quick wins. 4. They strengthen your existing customer base. 5. They drive revenue without increasing ad spend. 6. They help boost brand loyalty. It’s not about always finding new leads. It’s about maximizing the ones you already have. The real measure of growth? Turning dormant leads into active buyers. Never forget: Every inactive lead is a potential customer waiting for the right nudge.

𝐓𝐡𝐞 𝐮𝐥𝐭𝐢𝐦𝐚𝐭𝐞 𝐮𝐧𝐭𝐚𝐩𝐩𝐞𝐝 𝐫𝐞𝐬𝐨𝐮𝐫𝐜𝐞: Dormant leads. Most businesses ignore them. They focus on new acquisitions. Chase fresh contacts. But here’s the reality: Your dormant leads need immediate attention. Here’s why: 1. They’ve already shown interest. 2. Re-engagement is cheaper than new acquisition. 3. They’re a shortcut to quick wins. 4. They strengthen your existing customer base. 5. They drive revenue without increasing ad spend. 6. They help boost brand loyalty. It’s not about always finding new leads. It’s about maximizing the ones you already have. The real measure of growth? Turning dormant leads into active buyers. Never forget: Every inactive lead is a potential customer waiting for the right nudge.

Big move this week in the ecosystem tech category: Crossbeam and Reveal merged to create a unified data network where partnerships can flourish. Up to this point, every time you kick off a new partnership, you had to ask “which do you use, Crossbeam or Reveal?” If you use different systems, it almost renders you incompatible as partners, because having the visibility into your account overlaps is THAT crucial to the potential success of the partnership. It sounds like this issue will become a thing of the past with the merger. As a partner of both of these companies, this gets us really excited. Congrats to our friends Bob Moore and Simon Bouchez and their teams. Do you think there’s a play to create even more partner magic by bringing account mapping together with marketplaces? Give us a few weeks and find out.