In our weekly investment team call earlier this week we decided to pass on two early-stage SaaS startups that were both on track to grow from zero to $100k in MRR in their first 12 months of going live. Both companies clearly had impressive traction, but in both cases we weren’t convinced of the market size and the opportunity to build a large, sustainable company. (We of course might be wrong, and maybe we’ll have to add both companies to our growing anti-portfolio list in a couple of years. I’ll keep you posted.)
Coming back to our observation regarding the rise of bootstrapped SaaS companies, assuming our theory is right, it means two things:
2) Picking might become even harder
Not yet convinced that you shouldn’t raise venture capital? 🙂 Let us know!