SaaStr Fund

What is SaaStr Fund?

SaaStr Fund is a venture capital firm that specializes in early-stage investments, particularly in the Seed and Series A rounds, with a clear focus on B2B, B2D, and SaaS startups. They actively invest in business software, APIs, and tools that enable the development of software products, while deliberately avoiding investments in consumer startups, subscription services that aren't primarily software-based, and pre-revenue ventures.

SaaStr Fund usually targets companies generating between $100,000 to $2 million in Annual Recurring Revenue (ARR) and prefers to step in when a startup has achieved a minimum of $10,000 in Monthly Recurring Revenue (MRR) from at least 10 unaffiliated customers. Companies that are too early for the fund's investment criteria are those before $10k MRR or pre-revenue, and those that might be considered a bit late for their portfolio are ones after $2m ARR or at the Series A level.

An integral part of SaaStr Fund's investment thesis is the relationship with the SaaStr community. They expect potential portfolio companies to be part of this community, meaning their founders are familiar with SaaStr's content, including blog posts, podcasts, or events.

While they are open to startups based anywhere globally, acknowledging that SaaS has flattened geographical barriers, SaaStr Fund expresses a preference for teams that frequently visit the Bay Area, which they believe facilitates recruitment, fundraising, and partnership opportunities.

Annually, the fund invests in about 4-5 high-potential SaaS startups, with investment sizes ranging from $500,000 as a minimum to a maximum of $4,000,000.

What they say:

We invest in B2B/B2D/SaaS. i.e., only business software and APIs and tools than enable the building of software. We don’t invest in consumer start-ups, or subscription services that have elements of recurring revenue but are not primarily software products. SaaStr Fund invests in 4-5 awesome SaaS start-ups a year, generally in the $0.1m to $2m ARR range. Before $10k MRR is usually a bit too early for us, and after $2m ARR or so is usually a bit late and Series A. Pre-revenue is too early. We can only invest if you have at least 10 Unaffiliated Customers, and ideally, $10k+ or more in MRR. We invest in founders that are a part of the SaaStr community. That’s probably you if you got here :). But if you’ve never heard of SaaStr, never read a SaaStr post, heard our podcast, or been to one of our events ... there are probably better sources of capital. We are OK with startups based anywhere in the world (SaaS has flattened), but prefer folks that come to Bay Area frequently. It does make it easier to recruit, fundraise, partner, etc. At least in normal times.