Money and liquidity are BIG problems for SaaS ventures.
Many grossly understimate the cost of development, going to market and building a user base.
Even if they’ve built an MVP, the cost of staying on the market is huge.
Development, marketing, sales, admin and living costs continue, and they all consume precious resources.
It’s why 10 out of 11 software ventures fail within 3 years.
For many, this lack of cash isn’t necessary though.
They have a good idea and access to the right people to help them execute it.
There’s just one thing in the way.
THEM!
They’re not willing to share the wealth.
They want to keep their valuable IP all for themselves so they can reap all the rewards and be the next Atlassian.
In reality for most that’s just not going to happen.
They need to grow and that costs money.
Best then is to search for investors; some people who’ll chuck some cash in the pot for a slice of the pie.
There are plenty out there too.
Family, friends, private equity firms, venture capitalists et al.
But my favourites are clients.
They’re already invested emotionally and you both want the same thing: The continued success of your platform and the rewards it delivers.
Surely that’s worth giving away a little of your IP.
#MrSaaSSays
Leave a Reply
Want to join the discussion?Feel free to contribute!