So a lot of scale-ups and startups have fallen off the venture track. They aren’t growing at venture-scale rates anymore. Triple Triple Double Double is now firmly in the rear-view mirror.
That can be tough.
It quickly becomes impossible to raise any capital other than from insiders. Folks leave. It’s a big transition.
Still … still … if you can’t get all the way back to venture-scale growth, at least stay or get to Private Equity levels of growth. There are still some pretty good acquisitions and “exits” to happen at that level of growth, too.
Huge congrats to @iDedupe + @elasticull and team @logikcull!!
Proud to have been the first venture investor!! https://t.co/nlwPkUnSZJ
— Jason ✨????SaaStr 2025 is May 13-15✨ Lemkin (@jasonlk) August 29, 2023
What’s that?
The “PE Track” is Roughly:
– $20m or more ARR
– 100% or higher NRR
– 30% or higher revenue growth
– Profitable, break-even, or close
And
– Don’t raise money at a crazy high price
At that level, private equity firms will still be interested in buying you in many cases.
At $100m+ ARR, it will be firms like Vista and Thoma Bravo, Before that, it’s other names. There are literally 100+ PE firms that buy SaaS companies from $10m/$20m-$100m ARR. Either you, they will track you especially after $20m ARR. You’ll get calls, and especially if you are in a space they can combine with a large player, offers.
Andy Wilson and I from Logikcull did a deep dive on how it happened for them:
You usually have to get to that level of scale, that level of growth, and that amount of efficiency to be on the PE track..
And the offers are lower in many (but not all) cases that you’d get in a hot deal from an aggressive tech buyer.
But it can be real, good money for everyone.
Fight to get there, and to stay there. $20m+ ARR, 30%+ growth, cash-flow neutral. It’s not going to make you Palantir. But it just might get you a nine figure exit.
A great example and case study here:
