Schumacher: Well-managed SaaS companies almost never go bankrupt without excessive VC funding
Tim Schumacher · The Micro PE Playbook: They Bought 20 SaaS Companies, $60m ARR, 300 people · Aug 29, 2024 · at 10:27
Tim Schumacher explains why bankruptcy is rare in SaaS compared to e-commerce, blaming excessive VC capital and overspending for distressed SaaS companies.
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“If you manage the SaaS well, it's almost impossible to get into bankruptcy. It usually only happens if there's a VC pouring too much money. Founders go crazy. The environment tanks.”
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