Crennan: Many Solid Software Businesses Fail Under VC Growth Expectations
James Crennan · Startup Acquisition Stories with James Crennan - General Partner at Xenon Partners · Apr 4, 2022 · at 3:00
James Crennan, General Partner at Xenon Partners, describes the micro private equity thesis for acquiring viable SaaS businesses whose growth rates fall short of standard venture capital benchmarks.
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“We talk to these founders who have built this business that is in all senses, a great business. But when you overlay the venture capital trajectory that needs to happen for businesses to be doing actually great by the label of great in the modern world, then these companies aren't typically hitting the growth rates that are required. To really provide enough of an opportunity to the founders to have upsized returns.”
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