How to sell your SaaS startup with Joe Lewin from Foundy

In this podcast episode, Joe talks about his experience of building and selling a startup and emphasizes the importance of engaging with multiple buyers to secure the best valuation. He discusses Foundry's two-sided marketplace, attracting high-quality sellers and providing buyers with insights into financial performance. He also talks about streamlining the sign-up process for sellers and automating due diligence. He also discusses Foundry's self-serve platform, transparent pricing, and support services. He mentions lending partners for seller financing and their goal to automate and streamline the M&A process, and much more!

Timestamps

Building and Selling Startups [00:00:22] Joe discusses his journey of building and selling startups, including their experience of selling a previous business and the process of attracting buyers.

Engaging with Buyers [00:03:37] Joe talks about his strategy of engaging with potential buyers, including how they reached out to multiple buyers and created competitive tension to secure the best valuation for their company.

Sourcing Deals and Attracting Buyers [00:07:44] Joe explains the process of sourcing deals and attracting buyers on their platform, focusing on the importance of having a good product and a supply of high-quality profitable businesses.

Streamlining the Due Diligence Process [00:10:36] Joe discusses the current process of due diligence, which involves traditional methods such as in-person meetings and paper questionnaires. They mention their efforts to streamline this process and automate software due diligence.

Timeline to Exit [00:11:39] Joe talks about recent deals that have gone through on the platform, with one taking 25 days and another taking five weeks. They mention that the average exit process outside of Foundry's platform typically takes nine to twelve months, highlighting the efficiency of their platform.

Valuation and Negotiation [00:17:33] Joe discusses the valuation calculator they have built and the revenue multiples they consider for startups. They emphasize the importance of efficient negotiation and how it can impact the final exit valuation. He also mentions the strategic value that can be captured in a business.

[00:20:36] Foundry's self-serve platform and tailored advisory services for business sellers and buyers. Joe discusses how Foundry offers a self-serve platform with additional support when needed, as well as tailored advisory services for businesses of different sizes.

[00:21:54] Comparing Foundry's pricing and services to traditional advisory firms. Joe explains how Foundry's pricing is transparent and tailored to business size, unlike traditional advisory firms that have hidden fees and less relevant services.

[00:23:38] Discussion on Foundry's funding platform and automation of the M&A process. Joe mentions lending partners and the goal of automating and streamlining the M&A process.

Automating the hiring process [00:31:39] Joe discusses the benefits of using platforms like LinkedIn to automate and streamline the hiring process, saving time and hassle for founders.

Funding strategy and getting VC investment [00:33:45] Joe talks about their strategy to secure funding from Fuel Ventures and shares advice for founders looking to raise funding, including building a list of prospective investors and leveraging warm introductions.

Tips for raising funding and simplifying the introduction process [00:36:55] Joe provides tips for raising funding, including getting feedback on pitch decks, using tools like Bridge, and simplifying the introduction process to make it easy for busy investors.

Hiring a founder associate [00:42:54] Joe talks about the benefits of hiring a founder associate from an early stage and how it can...

In this podcast episode, Joe talks about his experience of building and selling a startup and emphasizes the importance of engaging with multiple buyers to secure the best valuation. He discusses Foundry's two-sided marketplace, attracting high-quality sellers and providing buyers with insights into financial performance. He also talks about streamlining the sign-up process for sellers and automating due diligence. He also discusses Foundry's self-serve platform, transparent pricing, and support services. He mentions lending partners for seller financing and their goal to automate and streamline the M&A process, and much more!

Timestamps

Building and Selling Startups [00:00:22] Joe discusses his journey of building and selling startups, including their experience of selling a previous business and the process of attracting buyers.

Engaging with Buyers [00:03:37] Joe talks about his strategy of engaging with potential buyers, including how they reached out to multiple buyers and created competitive tension to secure the best valuation for their company.

Sourcing Deals and Attracting Buyers [00:07:44] Joe explains the process of sourcing deals and attracting buyers on their platform, focusing on the importance of having a good product and a supply of high-quality profitable businesses.

Streamlining the Due Diligence Process [00:10:36] Joe discusses the current process of due diligence, which involves traditional methods such as in-person meetings and paper questionnaires. They mention their efforts to streamline this process and automate software due diligence.

Timeline to Exit [00:11:39] Joe talks about recent deals that have gone through on the platform, with one taking 25 days and another taking five weeks. They mention that the average exit process outside of Foundry's platform typically takes nine to twelve months, highlighting the efficiency of their platform.

Valuation and Negotiation [00:17:33] Joe discusses the valuation calculator they have built and the revenue multiples they consider for startups. They emphasize the importance of efficient negotiation and how it can impact the final exit valuation. He also mentions the strategic value that can be captured in a business.

[00:20:36] Foundry's self-serve platform and tailored advisory services for business sellers and buyers. Joe discusses how Foundry offers a self-serve platform with additional support when needed, as well as tailored advisory services for businesses of different sizes.

[00:21:54] Comparing Foundry's pricing and services to traditional advisory firms. Joe explains how Foundry's pricing is transparent and tailored to business size, unlike traditional advisory firms that have hidden fees and less relevant services.

[00:23:38] Discussion on Foundry's funding platform and automation of the M&A process. Joe mentions lending partners and the goal of automating and streamlining the M&A process.

Automating the hiring process [00:31:39] Joe discusses the benefits of using platforms like LinkedIn to automate and streamline the hiring process, saving time and hassle for founders.

Funding strategy and getting VC investment [00:33:45] Joe talks about their strategy to secure funding from Fuel Ventures and shares advice for founders looking to raise funding, including building a list of prospective investors and leveraging warm introductions.

Tips for raising funding and simplifying the introduction process [00:36:55] Joe provides tips for raising funding, including getting feedback on pitch decks, using tools like Bridge, and simplifying the introduction process to make it easy for busy investors.

Hiring a founder associate [00:42:54] Joe talks about the benefits of hiring a founder associate from an early stage and how it can support decision-making processes.

Favourite online tools [00:44:22] Joe shares their favorite online tools, including Gmail, HubSpot, and Trumpet, and discusses the importance of using tools to streamline and automate processes.

Key Links

Foundy – https://foundy.com/

Sell-side advisory - https://foundy.com/advisory/sellers

LinkedIn – https://www.linkedin.com/in/jp-lewin