Orlando Bravo's Investment Insights
News, insights and updates from the team at Bloom Equity Partners
Founders, Operators, and Investors! Happy Friday!
If you are a new reader, welcome 👋 to The Weekly Bloom. Every Friday, we share our favorite SaaS articles, podcasts, tweets, and news headlines from across the industry. We also share some insights from the team or other successful professionals in the industry.
The weekend is almost here and we’ve got some solid content for our fellow readers 👇
Three tips for software investors
Earlier this week, the software investing kingmaker Orlando Bravo sat down with Private Equity International. During the interview, he shared his thoughts on SaaS investing as well as some tips for software investors trying to navigate the turbulent markets.
When Orlando speaks, we should all listen closely.
Here are a few of his insights:
There is plenty to consider when it comes to assessing the quality of a software business
The biggest mistakes in tech investing happen when assessing the quality of the product during initial due diligence. Metrics such as net and gross retention can act as a guide but they’re not perfect.
Investors should dig into how much has been invested in future R&D and if that matches what the market wants.
Investors should also asses their internal experience when it comes to product development.
Know your market
Bravo believes that providing a very important solution to a customer’s problem is a lot more important than TAM in the long term.
“That sense of value may not be clear, it’s certainly not on the balance sheet and may not have been factored on the p&l”
Investors should consider what a company’s competitive advantage is over other players in the market and potential new entrants.
Take less leverage and focus on earnings returns
Bravo suggests that investors should manage P&Ls more closely during a downturn. Although he does agree that SaaS investors need to keep investing in order to stay competitive, he warns against dipping your margin when times could get tricky.
If you want to take a deeper dive into the interview, you can read the full report: here
What We’re Reading and Listening To…
📚 SaaS Pricing: A Guide to Models, Strategy, and Optimization
SaaS companies come in all shapes and sizes, and the range of pricing models reflects the diversity. Land on the right pricing model early, and you can set your sights on sustainable growth and hitting the “cruise control” on the path towards a multi-million dollar valuation. Bloom Growth Studio’s latest guide on pricing can help you steer your SaaS towards profitability.
📚 Should you buy a media company? 🎙️
Favorites from the Ecosystem
Investors👇…..
Founders👇…..
Operators👇….
News from the Industry: deals, deals, and more deals 💰
Thoma Bravo to take software firm ForgeRock private in $2.3 bln deal
Vista Equity to Pay $4.6 Billion for Software Firm KnowBe4
Apollo Commits $500m to Haveli Investments
End Note 🔚
As always, if you're enjoying The Weekly Bloom, we'd love it if you shared it with a friend or two. We try to make it one of the best emails you get each week, and I hope you're enjoying it.
And should you come across anything interesting this week, send it our way! We love finding new things to read through members of this newsletter.
About Bloom Equity Partners
Bloom Equity Partners is a lower mid-market software-focused private equity firm, leveraging deep operational and commercial experience to create enduring market value for the benefit of our investors, founders, and their companies.
If you or someone you know is considering selling or taking investment, we might be able to help out. Just reply to this thread and we can get acquainted!