The Energy of Personal Fairness and a $1 Billion+ “Double Acquisiton”


I used to be fortunate sufficient to be the primary enterprise investor in a next-gneration ediscovery startup, Logikcull, manner again in 2015.   A flash-back to them at $1m ARR or so right here:

Andy Wilson CEO has been a part of SaaStr occasions and contents since then, and an awesome session beneath on how they scale, and an awesome publish right here on how they migrated from a companies enterprise to a real SaaS enterprise right here (at all times arduous).

There’s quite a bit we might discuss there on Andy and Shen’s 19+ 12 months journey to a giant exit (together with their decade as a companies firm), however we’ll save that for a podcast and a deep dive quickly.

Right here let’s speak concerning the deal:  Logikcull and one other adjucent vendor have been simply collectively acquired for a mixture of $1 Billion Money.

As a result of I believe we are able to study quite a bit right here about Personal Fairness works in SaaS and acquisitions.

Logikcull was/is doing tens of hundreds of thousands of ARR and has been worthwhile for a while (sure it may be executed) with stable development.  What occurred right here?  It was acquired to mix it into an e-discovery chief at 9 figures in ARR.

1+1 =3 right here

How does it work?  Think about one SaaS scale-up at say $100m ARR rising say 30% — good however not fairly sufficient to IPO.  Now mix it with one other at $50m ARR rising say 40% — once more, good however not sufficient to essentially as a result of a billion greenback mix.  Now what do you could have?  A frontrunner at $150m+ rising 35%.  That’s on the trail to an actual IPO at $200m ARR in only a 12 months or so.  Whenever you may not have gotten there in any other case.

So collectively, Logkicull + iPro are price $1 Billion Money — even in right this moment’s market.  Alone?  Most likely lower than the sum of their components, for now.

Personal Fairness does a number of these offers, and count on to see much more going ahead.  However they actually solely work when you’re environment friendly.  Logikcull stopped elevating at a $100m valuation after which received worthwhile round $30m ARR.  That makes firms prefer it a really engaging “goal” to mix with one other chief.

However when you’re sitting on an enormous valuation, or burning a ton of money, lately have a tendency … to not occur.  Extra on that right here.

An enormous congrats to Andy, Sheng and the entire Logikcull workforce on one of many prime “exits” within the area.  Increase!!



Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button