Sramana Mitra: The stratification that’s happening in the industry right now is creating a different dynamic. Earlier, a small fund would not even exist. Right now, smaller funds exist. The smaller funds take the company for three to five years of its life, and then it exits into the larger funds, which would take it
Sramana Mitra: So what is the best and easiest way for me to do this? I would like to acquire another product that is relatively cheap to acquire and be able to put it through my channel and just go from $1 million to 200 in million in revenue. That with the $700 million to
Sramana Mitra: Are you chasing Unicorns? Jason Cahill: Yes and no. I don’t get upset when my companies get marked up at billion dollars. If I invest in a company in $5 million, they get to acquire at $50 million, I can live that. That’s the tax. I have done very well at being efficient
Sramana Mitra: What about types of companies? What in the segments do you like to invest in? B2B? B2C? Jason Cahill: We invest in new technologies in older industries. So the flavor on that would be advanced data technologies like artificial intelligence, machine learning, and robotics. There are new type of opportunities in energy, agriculture, transportation,
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Jason Cahill was recorded in January 2019. Jason Cahill is Managing Partner at McCune Capital, a NY-based firm. He talks about the pros and cons of chasing Unicorns, as well as his
Sramana Mitra: One of the options that we have to keep in mind is that the vast majority of strategic acquisitions happen in the $50 million to $60 million price point. For everybody concerned about making money with a $50 million exit, you have to build the company in that $5 million to $10 million
Sramana Mitra: Your point is very well-taken. In the early stage, not everything is figured out. There is a certain amount of pivoting that goes on often in the quest for that repeatable sweet spot. Capital markets change and competitive markets change. You just have to adapt. With that understanding though, I want to ask
Sramana Mitra: Within B2B SaaS, do you have a preference between selling to enterprises versus selling to small businesses? George Spencer: I’ve invested in the past in both and made money on both. My diligence is understanding how you’re going to be able to build a distribution channel based on the price points that you’re