HoriZen Capital Technology Fund I
Identifying and Scaling B2B SaaS Opportunities
SaaS Technology Fund - $25M
• Horizen Capital is a micro-cap SaaS technology fund that is raising $25 million in order to invest directly into up to 7 software companies.
• We have a targeted total investment return of 400% on the capital from LP’s after our standard management fees.
• Partners have been operating and growing SaaS companies for the last 15 years. We’ve grown companies profits by over 100% within 5 months.
Why Did We Create Horizen's SaaS Technology Fund For Investors?
To Unlock The Growth Potential of B2B SaaS Companies
We have a proven track record of identifying and scaling under-developed B2B SaaS companies with significant growth potential.
Our funds investment thesis has been developed based on our 15+ years experience from our team's expertise in growth marketing & SaaS operations, M&A, private equity, and finance.
We are one of the few technology fund GP's that combine operational experience with financial diligence to source, select, and grow our portfolio companies.
We invest in companies that generate $2-5 million in annual recurring revenue, growing of at least 10% YoY, churn of less than 3% churn, LTV of over $1500 and market requirement ensures that our fund invests in only the most promising companies on behalf of our investors.
HoriZen Capital Generates Quality Deal Flow For Investors
Each financial due diligence is different and tailored to the specific SaaS business we review, however here are what a general due diligence roadmap and diligence checklist look like in a simplified way.
1.
Our expansive online presence and personal network gives us exclusive access to high quality investment opportunities every week.
2.
Our ability to create content about Private Equity & M&A strategies on prestigious platforms (ie. Toptal, TechCrunch, MicroAcquire, etc.) provides us with unique insights and high quality inbound opportunities.
3.
We are well connected with top founders and thought leaders in the B2B software ecosystem through our weekly SaaS District podcast, giving us a competitive edge in identifying high quality assets throughout the podcast interview process.
4.
Our outreach team provides us access to review up to 5 quality investment opportunities per week for the technology fund to possibly invest into.
How We Plan to Expand the Search for Investments
We have a proven system for identifying and investing directly in high-quality SaaS businesses through several proprietary channels.
We have a large and growing network of investment professionals in the technology sector who refer investment opportunities and partners for our fund.
We are proactive in expanding our network to include the most relevant SaaS professionals in the space, through communities, conferences and events across the globe.
We offer competitive market valuations and fair terms for sellers, which generates better future results and investment returns across the portfolio.
How HoriZen's Tech Fund Selects and Work
With Target Companies?
Our fund invests a minimum of $3M USD growth equity tickets into B2B SaaS companies with modest growth (10%-40% year on year) and good operation metrics (less than 3% monthly churn) where we identified a clear potential for growth through SEO, conversion rate, sales, pricing and paid marketing ROI.
We work with companies that are profitable or have a clear path to profitability and expect our acquired companies to generate positive cash flow within one year post-investment.
Our fund provides growth capital and our team of growth experts is hands on operationally leading the growth marketing (Conversion Rate Optimization, SEO and PPC) and sales, working directly with founders on behalf of our LP’s.
3 Pillars of the HoriZen's Tech Fund for Superior ROI to LPs
Greater revenue and EBITDA mean a greater basis of valuation
Increase of top line growth translates into higher SaaS valuation multiples
Micro-SaaS valuation multiples are correlated to the size of the company. Growing the revenue and EBITDA to certain thresholds also translates into higher SaaS valuation multiples
Case Study of A Transaction
99 Dollar Social
A subscription marketing business that delivers custom content for social media pages for small businesses at a low price of $99/month.
Acquired in July 2016 based on past performance averaging a T6M EBITDA of $20k/month
60%+ IRR in the first year for the investors including quarterly dividends distributions
2x profits within 5 months of the investment
Value creation through reseller and channel partners, webinars, churn reduction, upselling existing users, on page and off page SEO and paid advertising campaigns.
Next Steps
to Learn More
Do you still have questions on the Horizen SaaS technology fund and investment management will work?
Speak directly with us by booking a time with our team at your earliest convenience.
Akeel Jabber is the Investment Director and GP at HoriZen Capital. An Engineer who was previously a partner and operations director at Wired investors, a micro private equity firm focused on digital asset acquisitions and has been involved in over 15 company acquisitions. Expert in growth marketing strategy and business operations.