Context: I am raising a traditional fund for a national search, focused on acquiring a SaaS company (though not exclusively). For reference, I am a former 2X VP of Sales for venture-backed SaaS startups and Senior Pastor (long story). Based in Boston, I have just finished my PPM and now actively looking to speak with investors. Would love to speak to investors open to SaaS acquisitions and bullish on the space as I am.
Question: Why do some investors refuse to spell out the industries they do NOT invest? Or alternatively list only where they focus. Spoke with an investor yesterday who had all the typical investment criteria (>$1M EBITDA, recurring revenue etc) but no industry focus listed on their website. Then proceeds to tell me they don't do SaaS searches, just old world businesses.
Are they looking to keep their options open?
You raise an interesting question. Think of it from an investor's perspective. Investor's like options. While many will have firm lines about what they've found works for them and/or where they feel they can add the most value.
Take your experience in sales. How often and quickly do you disqualify an Ideal Customer Profile that isn't perfect, but isn't a clear no (E.G. Need, and Budget) - particularly when you're earlier stage and the ICP can shift as the product/market does?
Investor's are in the same business - and like a solid sales person want to maintain a good deal pipeline.
To be clear. This isn't a bad thing - maybe they are open to exploring new industries where the opportunity is right?
It's on you to flip the script - find the investors who will add value (financial, mentorship, expertise), and qualify them for what you'd like to do.
If you're ok with having investors without industry expertise, great. If you're not, great. Find the investor's who most closely align with what you'd like to do - you'll both be happier for it.