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May 23, 2022 · 15m · startup-acquisition-stories

Startup Acquisition Stories with Akeel Jabber - Investment Director at Horizen Capital

Akil Jabbar · 7m spoken Andrew Gazdecki · 5m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of SaaS Acquisition Stories, host Andrew Gazdecki interviews Horizen Capital Investment Director Akeel Jabber on the fundamentals of B2B SaaS acquisitions, evaluating target metrics, and preparing businesses for sale. Jabber shares insights on due diligence playbooks, operational scaling, and navigating the macroeconomic shift toward sustainable, cash-flow-positive software companies.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Andrew holds 38.2% of the talking time here. How this is scored →

Andrew as informed peer 4.0 Guest teaching 1.8 Guest disagreement 0.0 Andrew pushing back 0.0
05100:0010:000:24–3:26 · Andrew as informed peer 1/10 Welcome and Horizen Capital Overview Andrew acts as an open interviewer asking standard introductory questions about Horizen Capital. Akil outlines their investment criteria and quantitative screening playbook smoothly without any pushback or confrontation.3:27–7:49 · Andrew as informed peer 6/10 Acquisition Red Flags and Seller Preparation Strategies Akil outlines seller red flags and prep tips before asking Andrew about his observations on MicroAcquire. Andrew showcases his own expertise by breaking down the importance of data rooms and clean P&Ls in accelerating buyer decisions.7:49–9:50 · Andrew as informed peer 4/10 Akeel's Favorite Acquisition and Starting Small Akil shares his story of acquiring 99 Dollar Social and starting small in private equity. Andrew validates this strategy by citing his own past experiences buying smaller content sites.9:52–12:25 · Andrew as informed peer 5/10 Macroeconomic Trends and SaaS Valuation Predictions Andrew interjects with specific market data on public SaaS multiples dropping from 20x to 8x ARR to supplement Akil's macroeconomic forecast. The dynamic remains entirely collegial and mutually affirming through the rapid-fire outro.0:24–3:26 · Guest teaching 3/10 Welcome and Horizen Capital Overview Andrew acts as an open interviewer asking standard introductory questions about Horizen Capital. Akil outlines their investment criteria and quantitative screening playbook smoothly without any pushback or confrontation.3:27–7:49 · Guest teaching 2/10 Acquisition Red Flags and Seller Preparation Strategies Akil outlines seller red flags and prep tips before asking Andrew about his observations on MicroAcquire. Andrew showcases his own expertise by breaking down the importance of data rooms and clean P&Ls in accelerating buyer decisions.7:49–9:50 · Guest teaching 1/10 Akeel's Favorite Acquisition and Starting Small Akil shares his story of acquiring 99 Dollar Social and starting small in private equity. Andrew validates this strategy by citing his own past experiences buying smaller content sites.9:52–12:25 · Guest teaching 1/10 Macroeconomic Trends and SaaS Valuation Predictions Andrew interjects with specific market data on public SaaS multiples dropping from 20x to 8x ARR to supplement Akil's macroeconomic forecast. The dynamic remains entirely collegial and mutually affirming through the rapid-fire outro.0:24–3:26 · Guest disagreement 0/10 Welcome and Horizen Capital Overview Andrew acts as an open interviewer asking standard introductory questions about Horizen Capital. Akil outlines their investment criteria and quantitative screening playbook smoothly without any pushback or confrontation.3:27–7:49 · Guest disagreement 0/10 Acquisition Red Flags and Seller Preparation Strategies Akil outlines seller red flags and prep tips before asking Andrew about his observations on MicroAcquire. Andrew showcases his own expertise by breaking down the importance of data rooms and clean P&Ls in accelerating buyer decisions.7:49–9:50 · Guest disagreement 0/10 Akeel's Favorite Acquisition and Starting Small Akil shares his story of acquiring 99 Dollar Social and starting small in private equity. Andrew validates this strategy by citing his own past experiences buying smaller content sites.9:52–12:25 · Guest disagreement 0/10 Macroeconomic Trends and SaaS Valuation Predictions Andrew interjects with specific market data on public SaaS multiples dropping from 20x to 8x ARR to supplement Akil's macroeconomic forecast. The dynamic remains entirely collegial and mutually affirming through the rapid-fire outro.0:24–3:26 · Andrew pushing back 0/10 Welcome and Horizen Capital Overview Andrew acts as an open interviewer asking standard introductory questions about Horizen Capital. Akil outlines their investment criteria and quantitative screening playbook smoothly without any pushback or confrontation.3:27–7:49 · Andrew pushing back 0/10 Acquisition Red Flags and Seller Preparation Strategies Akil outlines seller red flags and prep tips before asking Andrew about his observations on MicroAcquire. Andrew showcases his own expertise by breaking down the importance of data rooms and clean P&Ls in accelerating buyer decisions.7:49–9:50 · Andrew pushing back 0/10 Akeel's Favorite Acquisition and Starting Small Akil shares his story of acquiring 99 Dollar Social and starting small in private equity. Andrew validates this strategy by citing his own past experiences buying smaller content sites.9:52–12:25 · Andrew pushing back 0/10 Macroeconomic Trends and SaaS Valuation Predictions Andrew interjects with specific market data on public SaaS multiples dropping from 20x to 8x ARR to supplement Akil's macroeconomic forecast. The dynamic remains entirely collegial and mutually affirming through the rapid-fire outro.

speaking balance: gold is Andrew, purple is the guest (3 minute bins)

0:00 · Andrew 22% · guest 78%0:00 · Andrew 22% · guest 78%3:00 · Andrew 22.3% · guest 77.7%3:00 · Andrew 22.3% · guest 77.7%6:00 · Andrew 54.7% · guest 45.3%6:00 · Andrew 54.7% · guest 45.3%9:00 · Andrew 45.8% · guest 54.2%9:00 · Andrew 45.8% · guest 54.2%12:00 · Andrew 46.7% · guest 53.3%12:00 · Andrew 46.7% · guest 53.3%15:00 · Andrew 0% · guest 100%15:00 · Andrew 0% · guest 100%
Sharpest disagreement ▶ 3:58 Warning on customer and traffic concentration

In a completely collaborative episode, the closest to combativeness is Akil strongly emphasizing dangerous red flags like single-keyword or single-customer dependency.

 Hardest push from Andrew ▶ 10:38 Polite interjection on valuation multiples

Andrew briefly interrupts Akil's macro analysis to add specific data regarding public SaaS revenue multiples falling from 20x to 8x.

 Biggest teaching moment ▶ 2:15 Akil breaks down Horizen's operational audit playbook

Akil provides an in-depth breakdown of Horizen's multi-step scorecard and operational audit criteria for vetting SaaS acquisitions.

 Andrew holds their own ▶ 6:59 Andrew explains buyer psychology on marketplace data rooms

When asked by Akil for marketplace insights, Andrew articulates how prepared financial data and data rooms drastically elevate seller credibility and conversion speed.
the scores for every segment, with the reasoning behind each
ChapterTopicAndrew as informed peerGuest teachingGuest disagreementAndrew pushing backWhy
Welcome and Horizen Capital Overview 1300 Andrew acts as an open interviewer asking standard introductory questions about Horizen Capital. Akil outlines their investment criteria and quantitative screening playbook smoothly without any pushback or confrontation.
Acquisition Red Flags and Seller Preparation Strategies 6200 Akil outlines seller red flags and prep tips before asking Andrew about his observations on MicroAcquire. Andrew showcases his own expertise by breaking down the importance of data rooms and clean P&Ls in accelerating buyer decisions.
Akeel's Favorite Acquisition and Starting Small 4100 Akil shares his story of acquiring 99 Dollar Social and starting small in private equity. Andrew validates this strategy by citing his own past experiences buying smaller content sites.
Macroeconomic Trends and SaaS Valuation Predictions 5100 Andrew interjects with specific market data on public SaaS multiples dropping from 20x to 8x ARR to supplement Akil's macroeconomic forecast. The dynamic remains entirely collegial and mutually affirming through the rapid-fire outro.

Statements from this episode (7)

Disclosure
Horizen Capital targets B2B SaaS acquisitions between $500K and $5M ARR
“Horizon Capital, we invest, you know, B to B SaaS companies, you know, we've gotten, we do acquisitions, we do investments you know, all sizes, generally somewhere between, you know, 500 K to five million in ARR B to B only.”
Akil Jabbar May 23, 2022 ▶ 0:53
Disclosure
Jabbar says Horizen Capital avoids high-growth startups and VC competition
“So we don't like these, you know, super high growth companies and we're not competing with VC money or capital investments.”
Akil Jabbar May 23, 2022 ▶ 1:46
Disclosure
Jabbar says Horizen requires sub-3% churn and $1,500 minimum LTV
“And then the other criteria is, you know, looking at monthly churn of less than three percent and LTV of at least 1500.”
Akil Jabbar May 23, 2022 ▶ 2:00
Assertion Not checkable as stated
Jabbar doubled 99 Dollar Social within five months of acquisition
“So NineEye. Social was the first kind of bigger one that, you know, over many different investors, that one came out you know, bought that one, was able to like double it within like five months.”
Akil Jabbar May 23, 2022 ▶ 8:44
Assertion Supported
Gazdecki: Public SaaS valuation multiples dropped from 20x to 8x ARR
“Public market SAS companies were traditionally trading at 20 X in recurring revenue. Now they're, On average trading at eight X. So they've gone from 20 to eight X”
Andrew Gazdecki May 23, 2022 ▶ 10:44
Prediction Not checkable as stated
Jabbar: Cash-Burning Startups Will Struggle to Raise and Face Bankruptcy or Sale
“I think like midterm, you also see even not just like buyers, but you know, VCs, investors will also be like more risk averse. So I wouldn't be surprised if like some of those high growth cash burning startups, like rely on constantly, you know, new rounds to …”
Akil Jabbar May 23, 2022 ▶ 11:07
Insight
Jabbar: Churn matters more than growth when evaluating SaaS acquisitions
“The one that scares me and also excites me is churn. ... I don't say growth, it's churn, for sure.”
Akil Jabbar May 23, 2022 ▶ 12:38
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