Brian Parks of Bigfoot Capital explains why traditional venture capital outcomes differ from median M&A reality for most software companies.
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“If you look at the median M and a valuation for Software companies, it's, I think the last day, it's a seventy million, right?”
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More from Brian Parks
Insight
Lagging revenue makes refinancing venture debt facilities difficult
“Anyone who's going to try to refinance you and help get you out of that position is oftentimes going to look at you on a, lever you on a revenue basis. So if you raised ten million bucks, but you only got, and you took three million, but you only got to two or…”
Brian ParksApr 17, 2025▶ 5:5941 - Funding the Future: Bigfoot Capital's Brian Parks on Flexible Lending for B2B Growth
Insight
Owning 40% of a $50M exit often beats a diluted IPO
“If you're not able to do that, but you're able to sell it for fifty million, let's just say, and you own 40% of that, You probably made just as much or more money as you made if you were that public founder of that public company.”
Brian ParksApr 17, 2025▶ 14:2541 - Funding the Future: Bigfoot Capital's Brian Parks on Flexible Lending for B2B Growth
Insight
LTV to CAC is unimportant for early underwriting because LTV is gameable
“LTV to CAC. Eh, not that important to us. LTV can be gamed. It's hard to know. Sometimes you don't have enough history or data.”
Brian ParksApr 17, 2025▶ 15:2241 - Funding the Future: Bigfoot Capital's Brian Parks on Flexible Lending for B2B Growth
AssertionNot checkable as stated
Venture debt requires an equity round within the last two quarters
“If you're going to get ventured at, you probably have to have raised around within the last quarter or two.”
Brian ParksApr 17, 2025▶ 1:4841 - Funding the Future: Bigfoot Capital's Brian Parks on Flexible Lending for B2B Growth
Insight
Net retention can mask churn, making gross retention an essential metric
“And frankly, we think retention can be masked for retention or can be masked on a net basis. So it's really important that we look at it on a gross basis.”
Brian ParksApr 17, 2025▶ 15:4741 - Funding the Future: Bigfoot Capital's Brian Parks on Flexible Lending for B2B Growth
Disclosure
Bigfoot Capital has never taken an equity warrant in its lending
“And we don't take any of the upside. We've never taken a warrant. We get paid interest and we in turn pay interest basically to two people.”
Brian ParksApr 17, 2025▶ 20:0841 - Funding the Future: Bigfoot Capital's Brian Parks on Flexible Lending for B2B Growth
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