Venture Capital Funding for SaaS: Still Alive?
I read this morning that Venture capital funding takes a plunge. I assume this is across all sectors but I also believe that there is still good venture funding available for the SaaS sector, despite LucidEra’s recent news. Am I wrong?
This slideshare suggests I am not.
We are constantly building SaaS products for small startups, including those in the MS BizSpark program, and see that some now need to go beyond seed funding.
How can I find other VC that are actively investing in the SaaS marketplace?
“How can I find other VC that are actively investing in the SaaS marketplace?” –
This is not a easy way, However,There is a possibility to know this with some efforts.Many VCs today are actively interested or rather concerned about making their their ROI/Risks and many of them are actively advising their portfolio companies especially those who need to get their product out or grow their business to optimise their costs,burn-out-rates and efficiencies.
So,if Scio’s services could potentially help optimise a number of things for a SaaS Startup,then VCs may be interested in advising their companies to explore such a possibility with Scio,if those companies donot have such internal capabilities or have to focus elsewhere..
So, Building a relationship with VCs through an approach or Value prop. that could help their existing portfolio firms or new investments (and inturn it helps them in their ROI)could potentially help you to generate leads about their SaaS investments.
There could be a win-win relationship, you could potentially refer your partner to a known VC and a VC could advise a company to contact you based on their business interests.
We are doing this effectively. Leveraging this model,requires crafting a great value prop , planning and approach tactics.
Sankar
Sankar Nagarajan
August 8, 2009