The landscape of software startup investing is a delicate balance between initial funding and later-stage deals. As a partner at Thomson Reuters Ventures, Joe Dormani offered intriguing insights into their investment strategy with host and B2B SaaS Sales Coach Matt Wolach. Let’s delve into the key takeaways from his perspective and the company’s approach.
Podcast: Scale Your SaaS with Matt Wolach
Episode: Episode No. 293, “How to Make Investors Love You – with Joe Dormani”
Host: Matt Wolach, a B2B SaaS Sales Coach, Entrepreneur, and Investor
Guest: Joe Dormani, Partner at Thomson Reuters Ventures
TOP TIPS FROM THIS EPISODE
Target the Sweet Spot
Thomson Reuters Ventures zeroes in on companies ranging from $1 million to $5 million in ARR, focusing on legal tech, tax software, compliance, and more. Their interest lies in startups demonstrating excellent product-market fit and a burgeoning sales trajectory, poised for scalable growth.
Work on Strategic Fundraising & Understand Needs
For software startups eyeing investment, Joe emphasizes aligning funding with business goals. Not every SaaS company needs venture capital; it’s about gauging the need for rapid scaling and seizing market opportunities.
Go for Transparency & Reality
He stresses transparency in dealings, urging founders to be forthright about their company’s reality. Overestimating or pushing for higher valuations might backfire; finding the right investor-partner fit is crucial.
Leverage Customer Stories
Joe highlights the significance of customer stories. It’s not just about what management says; it’s about customer feedback, experiences, and success stories that form the core of a compelling pitch.
Invest in Innovation
Thomson Reuters Ventures doesn’t just inject funds; they nurture potential and create an ecosystem where visionary ideas become impactful realities. Their strategy revolves around collaboration, expertise, and a shared vision for success.
Beyond Funding: Active Engagement
What sets Thomson Reuters Ventures apart is their commitment beyond capital. They actively engage with their invested companies, leveraging expertise and networks within Thomson Reuters to foster growth and success.
A distinguishing factor is their reputation as trusted partners for customers. They guide clients through industry complexities, be it regulatory changes or the ever-evolving tech landscape, offering benefits that extend to the companies they invest in.
Joe’s Journey: Tenacity & Strategy
Joe’s path into venture capital took a lot of work. It involved a decade-long journey, acquiring skills, education, and experience. His story underscores the importance of perseverance and strategic planning in achieving career goals.
Investing in innovation isn’t solely about financial investments. It’s about fostering growth, creating partnerships, and nurturing the potential to transform visionary ideas into impactful realities. Thomson Reuters Ventures is a beacon in this journey, guiding SaaS startups toward success.
[5:11] “My story is kind of a 10-year slog of just trying to pick up all the skills and do all the things that need to be done.”
[14:43] “Finding the right investor for any sort of situation is usually an advantageous situation.”
[18:59] “Every company does not need to raise venture capital.”
[21:22] “It’s much better to just be transparent with what the reality of the business is.”
To learn more about Thomson Reuters, visit: https://www.thomsonreuters.com/en.html
You can also find Joe Dormani on LinkedIn: https://www.linkedin.com/in/joseph-dormani-2b119a38/
For more about how host Matt Wolach helps software companies achieve maximum growth, visit https://mattwolach.com.