Big Band Software Launch

March 16, 2023

WELCOME TO THE BAND!

We’re reaching out to you with this first Big Band Software newsletter because you are a friend of ours or of the firm.

We’re quite thankful for the support we’ve had from contacts and supporters - many of whom are already sending opportunities our way. We’re building Big Band for the long-term, and we’ll share what we’re doing and thinking along the way.

Ping us if you don’t want to be on the mailing list of course, or if you want more or less of anything. And if this newsletter makes you think we might help you in some way, that’s awesome, too!

- Kevin, Jason, and Chris

THE LONG-TERM VIEW FOR SOFTWARE REMAINS BRIGHT

While many of the headlines dominating tech news feeds these days focus on rising interest rates, inflation, layoffs and a return to profitability, there are *thousands* of thriving (growing AND profitable) private B2B SaaS companies quietly building. According to Exploding Topics, there are ~30,000 SaaS companies worldwide and each year there are many of these that want to sell for one reason or another but are below typical private equity buying criteria or a mismatch with strategic buyers today (especially now given many strategics are hunkering down and hoarding cash).

Enter Big Band Software! We are looking for primarily bootstrapped and founder-owned B2B SaaS companies that are ready for a full exit. We are also buying for the long-term. We are not a fund, but a holding company created with the idea that great businesses take time to build - we will not be positioning for a quick flip or exit. We’ll bring expertise, and leadership when needed, to the table in order to take the business to the next level. We make fast decisions (we have a small team), have deep pockets (great investors), and invest in the company and the team (strong network, long game) for the future.

Why the name Big Band? A big band is a musical ensemble that usually consists of ten or more musicians with four sections: saxophones, trumpets, trombones, and a rhythm section. Individually the musicians are talented in their own right, but bring them together and a beautiful sound is produced. This is what we’re doing in the B2B SaaS space - bringing companies & people together, creating harmony in business.

Check out our full launch press release here!

WHAT ARE WE BUYING?

  • B2B SaaS with > 80% of revenue recurring. There are fantastic consumer, ecommerce, or service based businesses out there, it’s just not in our area of expertise.

  • ARR: $1M - $10M+

  • EBITDA: $400k - $2.5M+

  • 80%+ Gross Retention

  • 100% acquisition

WHO ARE WE BUYING FROM?

We’re a particularly good fit for SaaS sellers who might be:

  • Selling because they are ready to retire (we buy in cash + fast transitions are ok)

  • Selling because they want to start something new (again, fast transitions are ok)

  • Divesting a stranded product from a larger portfolio to free up some cash (cash :) )

PLAYLIST (What We're Watching, Reading, and Listening to)

This month we’re focused on the coverage generated by our press release, but in the future we’ll drop in links and commentary to some of the best resources we’ve found across the web related to buying, selling, running and operating profitable B2B SaaS businesses.

Big Band Launch Media Coverage:

Follow us on LinkedIn - here is our launch post

JOIN THE BAND

While we’re not hiring quite yet, we’re building our database with the best leaders and operators out there. If you know exceptionally talented people that may one day want to work with us, please have them get in touch with us at [email protected] or fill out the form on our Connect page.

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