Seedstrapping to Exit

In 1Mby1M, we like Seedstrapping to Exit. An example would be Adya’s acquisition by Qualys. Adya raised a small seed round. I introduced them to Philippe Courtot, CEO of Qualys. Qualys acquired Adya.

For our Seed Capital series of podcasts, I’ve interviewed hundreds of investors, especially micro-VCs and angels who play an important role in the early-stage game. 

As expected, a large number of investors are still chasing Unicorns. They are interested in investing in companies that will go from 0 to $100M in 5-7 years. And they will consume a great deal of capital in the quest of hitting the coveted billion-dollar valuation mark.

However, I am pleased to report that I have spoken with a good number of investors who recognize the niche opportunities.

Yes, they are interested in investing small amounts and harvesting through smaller exits. 

This is called Seedstrapping to Exit.

With that strategy is the recognition that most acquisitions happen in the sub $50 million price-point.

Over 96% of acquisitions happen in the sub $100 million exit price range.

Therefore, for all stakeholders to make money, a capital efficient strategy is required.

And it is essential that you have laser-sharp Positioning with a clear Exit Strategy. 

We are in a crowded market. You need to find the gap in an acquirer’s product that they want to fill. You need to make the Buy vs Build case in your favor.

If you need help with your Seedstrapping to Exit Positioning, join 1Mby1M Premium.

We specialize in great positioning work.

Let’s discuss. What is your unfair advantage? How do you differentiate? What is your Ideal Customer Profile (ICP)? What is your target segment? What stands in the way of Product-Market Fit (PMF)? Can you find Repeatability? Can you get to Velocity? What is your Total Available Market (TAM)?

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