Patel: Venture capital harms founders who miss top-three market status
Sujan Patel · Startup Acquisition Stories with Sujan Patel - Managing Director at Ramp Ventures · Mar 14, 2022 · at 18:16
Sujan Patel, Managing Director at Ramp Ventures, discusses the downside risks of venture capital dilution and high valuations for SaaS founders who do not build category leaders.
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“I think the VC game is great. If you think you can win an industry, it's great if you're top three, it's bad for everyone else who doesn't become top three contender in that space, right? So just because the valuations and the and the Illiquidity about the deal and then the dilution that happens to shareholders, primarily the founders”
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“We'll always buy versus build because it gives us speed”
Patel: A SaaS business is not at scale under $10M revenue
“Your company's not a scale unless you're at ten million dollars in revenue. I hate to break it to everybody here. That's the case. It's a fact.”
Ramp Ventures operates portfolio companies directly without individual CEOs
“A little bit how we're different than some other firms out there is that we don't have a CEO for each company. We actually, my partner and I are kind of a co-CEO or like CEO COO.”
Patel: Ramp Ventures targets $1M–$5M ARR B2B SaaS, excluding e-commerce
“Ideally, in a perfect world, we're looking at one to two, one to five million dollar AR companies that are in B to B SaaS. Everything else, we'll kind of look at the details unless they sell to e-commerce. So no Shopify and no WordPress for the most part.”