M A R K M A C L E O D , @ S TA R T U P C F O
A C H I E V I N G M E A N I N G F U L E X I T S I N S A A S
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A g e n d a
Introduction
European SaaS Exit Trends
How to achieve your exit?
01
02
03
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I n t r o d u c t i o n
M A R K M A C L E O D
F O U N D E R & P R E S I D E N T S U R E PAT H C A P I TA L PA R T N E R S
Mark has over 14 years experience as a CFO for leading companies such as FreshBooks, Shopify, Tungle and many others. He also spent 3 years as a General Partner at Real Ventures,
Canada’s largest and most active seed stage venture fund.
He raised hundreds of millions in capital from investors in Canada, the US and Asia. In addition, Mark has sold companies to Airbnb, Blackberry, Rackable Systems, Return Path and others.
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S u r e P a t h : O u r P u r p o s eHelping you fund, grow and exit your startup
The process of raising growth capital is very different from raising early stage capital
It is cheaper than ever to start companies, but more expensive than ever to build market leaders. If that’s your aspiration, you need growth capital
We help startups prepare for growth stage and help them raise the capital needed to become market leaders
We have sat on both sides of the table. We have funded, grown and exited many companies
We offer up that experience through ongoing coaching and mentoring.
A low touch, high impact way to help you grow
There are few credible choices for advisors to facilitate sub $100M exits. We fill that gap
We work with you to facilitate the BD and Corp Dev intros that pave the way to an eventual exit
If you decide to exit, we manage the process for you from start to finish
SurePath maximizes your optionality: We make sure you know what it takes to build a market leader and capitalize you towards that goal.
We ensure you are always in the minds of strategic buyers so that if they decide to make a move in your space, you are in the conversation. You can then decide; Keep going or exit?
Growth Funding
Strategic Guidance
Exits
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S u r e P a t h & S M B
• We have been part of some the most successful SMB SaaS companies • We have deep relationships with SMB investors and buyers • SurePath is committed to becoming the leading strategic financial advisor to the global
SMB software market
European SaaS Acquisition Activity
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E x i t s b y T y p e
Source: pitchbook.com
19
3024 24
35
2228 27
1520
16
1
11 2
1
1
1
0
5
10
15
20
25
30
35
40
2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3
NumberofDeals
European SaaS Exits by Type
Merger/Acquisition IPO
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Priate 67%
Public 33%
Buyer by Type
8
B u y e r L o c a t i o n & T y p e
Source: pitchbook.com
North America
41%
Asia & Others 7%
Europe52%
Buyer By Geography
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B u y e r sWho’s buying European SaaS companies
Source: pitchbook.com
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E x i t s b y A g e
Note: Some companies does not have a disclosed age Source: pitchbook.com
35
104
44
43
27
0 20 40 60 80 100 120
0to5years
6to10years
11to15years
16to20years
>20years
Number ofCompanies
Exit By Age of Company
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E x i t s b y S i z e
Source: pitchbook.com
192
54
12 7 30
50
100
150
200
250
Not Disclosed $0m - $50 $50M - $100M $100M - $200M > $200M
Exit Values
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F u n d i n g S t a t u s
Source: pitchbook.com
7%
40%53%
Funding Status of Exited Companies
PE VC Non-funded
$39.0m
$13.3m
$18.7m
$0.0m
$5.0m
$10.0m
$15.0m
$20.0m
$25.0m
$30.0m
$35.0m
$40.0m
PE VC Non-funded
Median Valuation
4.7x
3.7x
2.0x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
PE VC Non-funded
Valuation /Rev Multiple
How to achieve your exit
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Exit rule #1
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Exit rule #2
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Exit rule #3
Source: SaaStr
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Exit rule #4
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Buyer TypesFounder
✓ Product-driven
✓ Based on desire
✓ Top down
✓ No prior relationship needed
Manager
✓ Fact-driven
✓ Based on clear business case
✓ Pushed up to CEO
✓ Need evidence (joint customers)
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Drivers of deal value
✓ Alternatives (runway, competition)
✓ Scarcity
✓ Mortal enemies
✓ Growth (fear)
✓ Market leadership (2 way)
✓ Does the buyer’s CEO Want this?
✓ On strategy
✓ Currency
✓ Time and timing (including markets)
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T h e r o l e o f A d v i s o r s
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✓ Should you hire one? Yes
✓ What to look for: Relevant relationships, completed deals and expertise.
Senior people involved
✓ Role:
✓ Prepare you
✓ Quarterback
✓ Create / manage demand
✓ Good cop/ bad cop
✓ Objectivity
✓ Create urgency
Shubham Datta Associate
[email protected] 647.972.6834
Rena Wang Analyst
[email protected] 416.897.8922
Mark MacLeod Founder & President
[email protected] 416.843.6004