Attention B2B SaaS founders: There’s a new growth equity firm in the Southeast looking to hear your pitch.
Durham-based Jurassic Capital announced today it closed an oversubscribed $30 million fund that will invest in regional B2B software companies.
The firm invests in bootstrapped and “lightly capitalized companies” in the $1 million to $5 million annual revenue range. The firm will look at writing $2- $3 million initial checks for 15%+ minority stake, according to general partner Kevin Mosley.
“We (like most investors in our space) love investing in super niche B2B software companies, so that allows us to see some problems that are very nuanced,” he added.
Jurassic Capital launched in 2019 by Joe Colopy, who co-founded Bronto Software (a bootstrapped startup that was acquired by NetSuite in 2015 for $200 million).
It is a complicated time for many firms trying to raise their next fund. But Mosley told Hypepotamus that Jurassic Capital started initial fundraising efforts in 2021 during “better times,” so the fund was able to close its initial $20 million by January of 2022.
“Raising the last $10M+ over the last 18 months was certainly more difficult given how overallocated most potential LPs are in early stage tech investing,” Mosley added. “Our thesis of investing experience alongside capital in bootstrapped or lightly capitalized founders who haven’t raised a ton of institutional money resonates very well with exited founders who have lived through the gap that we invest in, so that profile ended up as our primary LPs.”
Understanding the B2B SaaS World
To date, Jurassic has invested in five East Coast companies working in SportsTech (Zoomph), AgeTech (Roobrik), HRTech (WorkDove), supply chain (Cycle Labs), and ecommerce (Corevist).
As we look into the second half of 2023, we wanted to get a sense of what areas of B2B SaaS Jurassic Capital is particularly interested in right now. For Mosley, the Southeast’s AgeTech scene is one to keep an eye on.
“There are some fascinating problems in Senior Living software right now as those facilities have to keep up with the Baby Boomer generation graduating into that space with different experience expectations than their parents had, while also balancing inflation and cost of living concerns,” he told Hypepotamus.