Open since 2017, the company has just launched its second $ 20 million fund
Most of the venture capital Firms are based in hubs like Silicon Valley, New York City, and Boston. These companies maintain these ecosystems and they did well, but SaaS Ventures took a different route: it went to cities like Chicago, Green Bay, Wisconsin and Lincoln, Nebraska.
The company is looking for entrepreneurial entrepreneurs who are trying to solve different problems than those in these other capital hubs. These problems require digital solutions, but may be beyond the experience of a typical computer science graduate.
Saas Ventures deals with four main areas of investment: trucking and logistics, manufacturing, e-commerce support for industries that typically didn't go online, and cybersecurity, the latter being the main area of SaaS Ventures areas Covers.
The company's first fund, launched in 2017, was valued at $ 20 million, but SaaS Ventures launched a second fund of the same amount earlier this month. It tends to hold onto small dollar investments while working with larger companies as it adds funds to a business.
We talked to Collin Gutman Founder and Managing Partner at SaaS Ventures, to learn more about his investment philosophy and why he chose to take the less traveled route for his investment thesis.
Another investment approach
Gutman's journey to finding business startups in remote locations began in 2012 while working at an early business startup accelerator called Acceleprise. "We really were the first to say that enterprise tech companies are wired differently and need different early-stage resources," Gutman told theinformationsuperhighway.
Based on this experience, he decided to found SaaS Ventures in 2017, with several key ideas underpinning the company's investment thesis: After his experience at Acceleprise, he chose to focus on the company from a slightly different angle than most early-stage VC companies .
The second part of his job was to focus on secondary markets, which meant looking beyond the popular startup ecosystem centers and investing in areas that normally didn't get much attention. So far, SaaS Ventures has invested in 23 states and Toronto, looking for startups that others may have overlooked.
"We have really phenomenal coverage not just in terms of geography, but also in terms of what is happening to the underlying businesses and their customers," Gutman said. He believes that comprehensive second-level market data gives his company the upper hand in selecting startups to invest in. More on that later.