Xenon Ventures

“When I was at Earth Class Mail, Xeon sold that after 18 months to Scaleworks and then I stayed on for another 10 months and then just decided to come back into Xeon.”

“Xenon does smaller companies. So typically employee size under 10 or maybe under 20. Revenue size, you know, usually it's under five. It totally depends on the company. Whereas Scaleworks, their skill set is much more applicable to companies that really need t…”

“Xenon's whole thesis is, hey, we'll come in and buy SaaS companies that have raised a bunch of funding that are, you know, five, six, seven years in that aren't going to make it to the billion dollar valuation that they thought but that they want a graceful ex…”

“Definitely buy. ... The founding teams, God bless them, have gone through all of that pain of, like, building the product, finding the customers, building the base and then having seen so many of these things now through Xenon we come in and you know, and you …”

“I, we had a really good year in 2017. We grew it two and a half X. It got profitable under Xenon for really its first time in, in, in scripted history.”

“I think that one's a cash cow. They're going to hold on to it for a while.”

“They were about to shut it down. And the board had already approved it. The assumption was they were going to let it go. Investors were going to take a loss.”

“Their thesis is to get at least three to four X out. So we want to then sell for a multiple three to four revenue or at least acquisition costs like what they bought it for.”

“And shadow equity also means that they so, you know, Xenon doesn't want to write GMs into the cap table. It's just it's just overhead, just kind of hassle. So it's essentially, it's a side letter that says if, and when there's a liquidity event, you get X perc…”

“No, they're actually none. So he bought the business. The whole team was acqui-hired by Instacart. And so he handed me a business that was doing a million ARR with no team.”