Episode description

Krista Morgan started her first tech company by raising funding and trying to grow very fast. When the company faced a big issue and failed, she learned that big funding was more of a problem than a help in the growth and wind-down processes.

Krista is now CEO and General Partner of Stage Fund, an early-stage private equity fund that makes control acquisitions of venture-funded SaaS companies that are stuck and need an alternative option to continue in a practical and profitable way.

In this expert episode, Krista explains:

• Why “growth at all costs” rarely works for software companies
• Why VCs and funded founders don’t plan for the likely scenario that the company won’t have a successful exit
• What’s happening in M&A for practical SaaS companies
• Why acquiring software companies to grow is often less risky than growing organically
• How to approach potential future acquirers to have a conversation about someday joining forces

“The game for practical startup founders is to find a way to make good decisions in the reality of today while still holding this big vision of the future. We can’t just grow at all costs, and we can’t just make all these big investments.

“There’s this misconception that practical founders don’t have a big vision of the future. Of course, they do. They’re just thinking about it and getting there in a different way. And that’s where we want to be.

“When I was founder of my first tech company, I thought money was always the answer. But money is usually NOT the answer. There is usually an answer, and maybe it takes money to get there, but it’s not the magical thinking of, If I just had five more people, I’d be here. Maybe, or maybe you wouldn’t. There’s no guarantee on that.”

• Krista Morgan on LinkedIn
• Stage Fund on LinkedIn
• Stage Fund website

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