The Best SaaS Investment Funds – 2020


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As demand for SaaS products continues to rise, institutional investors, VCs and private investors are continuing to search for the next cohort of unicorns to pile capital into in the hope of large returns over the next 5-10 years. With demand far exceeding supply, these investors are looking further downstream than ever before and beginning to enter the micro-cap space which has for a long time proven to be a hotbed of SaaS activity and attractive returns. However, this space is already well contested by fund managers, strategics, and angel investors. In this article, we take a look at some of the vehicles that have been consistently deploying capital into micro-SaaS businesses over the past decade, and the effects that new demand may have for years to come.

LTV SaaS Fund

LTV Fund is “the world’s leading dedicated mid-cap SaaS investment fund”. LTV SaaS Fund specializes in mid- and long-term investments, boasting high triple-digit percent returns on investments of 3 years and above. They focus on SaaS businesses and recurring marketplace apps and their core projects are based in the US. However, they also hold offices in Europe and Asia, meaning they are the most international of all of the funds featured here.

As the world’s first dedicated mid-cap SaaS investment fund, LTV has successfully raised five funds. The acquisitions are founded in over half a century of investment banking experience and pull from exclusive access to the world’s largest database of private acquisition data for SaaS businesses in the $1MM – $50MM range. LTV SaaS Fund seeks short and long-term investment opportunities, with a return rate of approximately 174% over a 3-5 year term. This is possible through an intimate knowledge of the SaaS M&A industry, as well as an impeccable reputation with some of the largest M&A firms, entrepreneurs, and communities in the space. The fund invests in a wide selection of businesses, maintaining a core focus on SaaS businesses and recurring marketplace apps to manage risk while maintaining a diversified investment base.

LTV SaaS Fund is also responsible for LTV Conf, one of North Americas’ leading SaaS conferences for founders and investors.

Key Facts

  • 100% founder buy-outs
  • 10 years+ of operational history
  • 40+ staff
  • Track record of triple-digit percent return to investors
  • Access to the world’s largest database of private acquisition data for SaaS businesses in the $1MM – $50MM range
  • Over half a century of investment banking experience from bulk bracket banking to small and mid-cap acquisitions
  • Offices in New York, San Francisco, London & Hong Kong
  • $10M – $100M under management

Ways To Invest:

  • Accredited investors only in the 6-and 7-figure range

Key Person

Thomas Smale, Fund Manager

Thomas is the Fund Manager at LTV SaaS Fund. Having originally founded FE International (the world’s leading SaaS M&A firm) in 2010 after several years of building and selling his own businesses, Thomas is a serial SaaS business entrepreneur and expert. With previous fund exits ranging from 120% – 800% in returns, Thomas’ investment thesis leads the market by combining a value-led approach with an intimate knowledge of growth marketing and the M&A markets and negotiation.

Indie.VC

Indie.VC is a 12-month program designed for founders who aim to build profitable companies. They help founders focus on revenue growth strategies without having to work on raising funding. They advertise a 100% revenue growth rate in the first 12 months, and 300% in the first 24 months, for the companies they back. Indie.VC sits under the investment firm O’Reilly AlphaTech Ventures, an early-stage investment firm founded by Mark Jacobsen, Tim O’Reilly, and Bryce Roberts. OATV has four funds with between 16-22 properties each in the digital space.

Key Facts

  • Fund post-revenue tech or tech-enabled businesses
  • 15 investments so far
  • Targeting “overlooked demographics” claiming they thrive under their funding and training program
  • Conversion trigger ranges from $500,000 to $5M, before conversion to equity is triggered
  • Redemption amount typically between 3% to 7%
  • Offer to connect founders with each other through quarterly events featuring panels with experts (past participants include the founder of Basecamp, founder of Swift, and founder of Pardot)
  • Seek to be the last round of funding companies take
  • Prefers to be lead investor
  • Provides between $100K to $1M in funds, with an average investment around $285K
  • Offers start-ups the option to buy back the firm’s shares as a portion of their total sales—which caps the firm’s return at three times its investment
  • Publishes V3 investment documents on GitHub

Ways To Invest:

  • Private

Key Person(s)

Bryce Roberts, Managing Director/Co-Founder of OATV and Indie.VC

Bryce focuses on consumer and enterprise software and service investments. Prior to OATV, he led many successful early-stage investments at Wasatch Venture Fund and began his career in technology doing large enterprise software deployments. Bryce works closely with the other MD, Mark Jacobsen, who has advised entrepreneurs for over 25 years, helping them build their companies.

Maple Media

Maple Media is a Los Angeles-based mobile media, advertising, and technology firm that acquires and operates mobile applications and mobile-based games. Their current portfolio features more than 100 leading apps from the App and Google Play stores, with a reach of over 35 million users every month. The company is backed by private equity firm Shamrock Capital.

Key Facts

  • Invest in individual apps as well as portfolios
  • Operate apps in the productivity, lifestyle, financial, casual gaming and action sports spaces
  • Apps must have 50,000+ daily active users
  • Consider limited partnerships with published apps generating more than 10,000 daily active users

Ways To Invest:

  • Private

Key Person(s)

Michael Ritter, CEO

Michael is an experienced veteran of the online gaming industry, having worked as SVP of Business and Corporate Development at Jam City. During his tenure at Jam City, Michael oversaw mergers and acquisitions activities in addition to publishing, licensing, distribution, sales, legal, and partnerships for games based on social platforms, as well as mobile devices.

Constellation Software

Constellation Software acquires, manages and builds industry specific software businesses to provide essential software solutions to both public and private sector clients. The businesses have a combined 125,000 customers in over 100 countries, and Constellation is now working to establish a portfolio of software businesses in a fund.

Key Facts

Acquisition criteria:

  • Tier 1:
    • Mid- to large-sized vertical market software companies with a minimum of $1M EBITDA
    • Consistent earnings and growth (generally EBITDA/revenue +revenue growth of 20% or more per year)
    • Determined offer price
  • Tier 2:
    • Number 1 or number 2 market shareholder in a niche vertical market
    • Revenues of at least $5M
    • Hundreds-of-thousands of customers
    • Determined offer price
  • Prefer 100% ownership in their companies, but willing to buy less if founders want to remain involved (particularly for Tier 1 businesses)

Ways To Invest:

  • Publicly traded company on the TSX (CSU.TO). Current market cap: CAD $27.99B.

Key Person

Bernard Anza Routh, Chief Investment Officer

Bernard joined CSI in 1995 and works with VMS businesses to identify and pursue opportunities for platform and tuck-in acquisitions. Primarily works to establish licensing and distribution arrangements, as he has a background in AVP Business Development for the Swiss-based tech corporation Ascom Inc. Prior to Ascom, he held various positions within IBM.

Tiny.VC

Tiny.VC has 38 co-investors, including System.One, GGV Capital and Greycroft, and has to date made 8 investments and completed 1 exit. Tiny.VC was founded in 2017.

Ways To Invest:

  • Private

Key Person

Andy Chung, Executive

Andy is a partner at the Nordic Web, a research and analysis company that specializes in covering data on tech companies emerging in the Nordic regions. The Nordic Web has started a new Angel fund to invest across Denmark, Finland, Iceland, Norway, and Sweden. Andy is a Co-Founder and serves as Board Member at Happyinc and is also an active Angel Investor.

Wasabi Ventures

Wasabi Ventures was founded in 2003 by two proven entrepreneurs with the aim of taking a 360-degree approach to startup incubation. To this end, the fund provides full lifecycle support, from financing, co-founding and mentorship, to access to a wide network of investors.

Key Facts

  • Experience growing over 200+ early-stage technology companies
  • Outside capital
  • More than 700 rounds of financing
  • Educated more than 2,000 future entrepreneurs through Wasabi Ventures Academy

Ways To Invest:

  • Private

Key Person

Tom Kuegler, Managing Partner

Tom co-founded Wasabi Ventures alongside General Partner Chris Yeh in 2003 to specialize in co-founding, investing in, incubating, and building and advising early-stage technology companies. Tom is an entrepreneur and New York Times Bestselling Author, and takes an active role in the operations of Wasabi Ventures.

SaaS Venture Capital

SaaS Venture Capital offers seed-stage VC funding to businesses in the enterprise tech space. The fund invests in companies across North America, taking the approach that they will not limit the pool of talent to the Bay Area or New York City. In order to prevent the headaches that founders often encounter when dealing with multiple lead investors, SaaS Ventures takes a collaborative approach to invest in rounds with a lead investor already selected. The leadership team is made up of five experienced individuals who are now leaders in the financial space, all former entrepreneurs. SaaS Ventures does not like to join the board of the company, but rather contribute where there may already be a lead investor.

Key Facts

  • 35 deals made across 19 states
  • Deals ranging in size from $750K to $3M
  • More than $20 million under management
  • First checks range in size from $75K to $200K

Ways To Invest:

  • Private

Key Person

Collin Gutman, Managing Partner

Collin founded SaaS Ventures in 2017 to focus on enterprise technology at the seed stage. Before moving into the VC space, Collin co-founded Acceleprise, which became the world’s first enterprise-only tech accelerator. Having been an entrepreneur himself, Collin is familiar with the difficulty in raising seed money, and so set out to fill this gap with SaaS Ventures.

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