Navigating the New Funding Landscape: From Seed to Strategic Exit
In a recent conversation with a prominent Seattle-based seed VC, a striking revelation came to light: seed investments are now typically targeted at companies with $200,000 in Annual Recurring Revenue (ARR). This threshold, which might have represented Series A or even Series B funding just a few years ago, underscores a dramatic shift in the venture capital landscape.
Navigating Product-Led Growth in M&A: Opportunities and Challenges
Product-led growth (PLG) has become a favored strategy for software companies, particularly in SaaS, as it allows the product to spearhead user acquisition, engagement, and retention. However, when considering PLG companies in M&A transactions, strategic buyers and investors need to dig deeper than the surface-level metrics to uncover long-term growth potential and evaluate risks effectively.
Conquering Fear in M&A—The Biggest Barrier to Selling Your Business
Fear is often the silent roadblock stopping founders from exploring the sale of their business.
The Geography Myth in Vertical and Horizontal Software Companies
One of the most common questions we encounter from Australian and New Zealand software company founders is: “Should I expand geographically to attract a buyer?” It’s a strategic decision often framed as a necessity for relevance in the M&A process. The answer, however, depends heavily on your company’s structure and target market.
Deal Announcement: Celebrating Loop Software’s Acquisition by Civica!
Hemisphere Partners proudly represented Loop Software in its successful acquisition by Civica, ensuring the deal delivered a strategic win for both parties. This milestone brings together Loop’s innovative Daymap – Learning Management for Schools, trusted by 150+ Australian schools, with Civica’s comprehensive school management solutions. The integration will reduce administrative burdens and foster collaboration, creating […]
Why “Sell Now” Isn’t Always Right
Software M&A advisors sometimes push a “sell now” mentality, emphasizing market conditions or creating urgency. They might argue that economic peaks or downturns demand immediate action. This pressure often comes from a desire to close deals quickly, benefiting advisors who prioritize volume over client outcomes. But is rushing to market really the right option for […]
Now with AI!
The surge of generative AI has sparked a wave of startups, some of which exist solely to integrate chat-like features into other platforms. This superficial approach often fails to set them apart or validate their worth. This recalls the late 1990s when the term “internet startups” became so overused it lost its meaning. Merely branding […]
Cycles in Private Equity: Opportunities for Software Companies
Private equity (PE) firms cycle between platform investment and value creation, shifting strategies to adapt to market conditions. Recently, higher interest rates and tough exit conditions have made operational efficiency and strategic acquisitions central to PE success. For software companies, aligning with these cycles—either as a platform acquisition or as a bolt-on target—can be transformative. […]
The “One More Feature” Hamster Wheel
The “One More Feature” Hamster Wheel
Navigating M&A: Why One Size Fits None
No matter what anyone says to you, your company is unique. Yet, many advisors approach these transactions with a cookie-cutter, one-size-fits-all mentality. This can lead to missed opportunities, unnecessary complications, and deals that fall apart before reaching the finish line. No two companies are remotely the same, so why should their M&A process be? Each […]
