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Venture Capital

B2B SaaS Venture Capital Fund

B2B SaaS Venture capital is a private equity investment into an early-stage company with high-growth potential

In today’s market, there is an ever-increasing rise of software as a service (SaaS) companies that serve both customers and other businesses. These are referred to as B2B SaaS or B2C SaaS companies — with B2B referring to “business to business” and B2B is “business to consumer.” Here, we are going to focus on B2B SaaS companies. Now, even if you haven’t heard of SaaS companies, it is likely that you are actually quite familiar with them, just not by name. There are some extremely popular SaaS companies that many people today use in their daily lives. For example, common platforms like Microsoft, Adobe, and Canva are SaaS companies.

GOLDEN SECTION
VENTURE CAPITAL FUND
FOUNDER SUCCESS
B2B SAAS
PRIVATE EQUITY FUNDING
EARLY-STAGE COMPANIES

So, what is the most important thing that all of these B2B companies have in common? How they start. If you are looking to start your own B2B SaaS company (or you are simply curious about how SaaS companies work), this is the most important information for you.

This is where we introduce what’s called “venture capital.” So, what is venture capital and why is it important for your startup or business? Put simply, venture capital is the type of financing that a private capital firm (or individual investor) provides to a startup or small business that they believe possesses long-term growth potential. Essentially, venture capital is a private equity investment. What does this mean? Basically, an investor or investment firm will provide the startup or business with monetary support and expertise to help the company grow in exchange for equity in the company (shareholder’s stake in the company).

Great, so why is venture capital so important for starting (or growing a small) business? As mentioned above briefly, venture capital is a private equity investment in which a firm or individual investor provides your business with money or resources so that your business can grow. Without venture capital, many startups or small businesses would not be able to compete in today’s extremely competitive market. This is why small businesses and startups need venture capital firms, like Golden Section. We can provide funding where a bank may have denied it (based on a loan being too risky) which can help to get your startup or business going.

Top Venture Capital Firms

Because venture capital is so essential to the diversification of the competitive market, it is no surprise that many different venture capital firms may invest in your business. Because there are so many different options, it would take a very long time to go through each and every one of them, so here are some of the top venture capital firms.

Here, we will briefly talk about each of these venture capital firms to give you a helpful look into navigating through the many options available.

Golden Section

Golden Section’s Venture Capital Fund has been making venture capital and private equity investments into B2B SaaS companies from across the globe since 2019.

We launched our fund after a decade of building over 400 B2B SaaS companies as a product development firm. We are based in Houston, TX and are very focused on B2B SaaS companies, product development, balanced partnerships, capital efficiency, and journeying together with founders towards their meaningful exit.

a photo taken from the chest down of a man using a laptop at a table
Battery Ventures

Battery Ventures has been making venture capital and private equity investments across the globe since 1983.

This firm is an American investment firm that is very technology-focused.

Craft Ventures

Craft Ventures is newer to the market and was founded in 2017.

This San Francisco-based venture capital firm focuses on early-stage venture investments.

Cowboy Ventures

Cowboy Ventures is based in Palo Alto and focuses on supporting seed-stage founders from many different backgrounds.

They strive to back unique founders that “re-imagine” life and work in the market and work to create amazing technology companies.

Passion Capital

Also founded in the 2000s, Passion Capital has funded 86 early-stage tech startups since 2011.

This partnership of experienced operators and entrepreneurs has helped Passion Capital to help early-stage founders grow their businesses greatly.

Notion Capital

Notion Capital’s headquarters is located in London, UK and the venture capital firm was founded in 2009.

They focus on European SaaS and Cloud founders and are an entrepreneur-led firm.

Point Nine Capital

This seed-stage venture capital firm focuses on funding B2B SaaS companies and marketplaces and is headquartered in Berlin, Germany.

They primarily focus on digital marketplaces.

Costanoa Ventures

Costanoa Ventures aims to change how business gets done and focuses on thinking of venture capital as a team sport.

The firm focuses on early-stage venture capital and strives to only fund small businesses and B2B startups.

Now, the list of venture capital firms here is by no means exhaustive. The type of venture capital firm you would want for your B2B startup or business may not be on this list.

Golden Section’s studios, for example, offers not only early-stage funding but also product development, as well as community and expertise so that your business can continue to grow at a good pace and not stall off after the early investments. This can be extremely helpful for startups who may be new to venture capital and want to make sure that their business is going to be set up for continued growth and success.

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B2B Venture Capital

As mentioned above, there are different types of companies (with B2B being one that has continually gained popularity over the years).

Because of this, there are different firms and individuals that are willing to invest in certain types of companies — or industries. For example, technology venture capital firms are going to be more likely to want to invest in SaaS companies or other companies that operate more in technological fields and the digital marketplace.

Additionally, because there are so many different types of companies that could benefit from venture capital investments, finding a good firm or individual to invest in your startup of a small business can be more difficult than just looking up a list of the top venture capital firms. For the best results, you would want to be more specific.

Say you are wanting to start a B2B SaaS company. Then you would benefit more from searching for the top SaaS private equity firms than just the best private equity firms in general. B2B businesses are continuing to rise in popularity as more businesses are rising and diversifying the market and both older and newer businesses can easily interact with each other in a digital marketplace. Because of this, if you are starting up a B2B SaaS company, you’ll want to have a great foundation to compete in the already competitive market. This is where Golden Section can come into play.

Unlike a lot of other venture capital firms, Golden Section does not stop at just early-stage funding. Our studios offer your business support through your entire company-building journey because it is extremely difficult to do on your own — and we get that. Golden Section isn’t just there to help you get on your feet as a startup, it is a growth partner that is committed to providing you with the expert support you need to continue growing your business.

Saas Startup Funding

As your business grows and transitions from a startup into a small business, your need for funding will naturally evolve as well.

Startups require a very specific set of fundraising criteria — most often referred to as “seed funding” which we will dive into in a moment. However, after your company has raised enough funds with the early-stage seed investors, it will have grown into a small business rather than a startup. And when this happens, the types of funds you are needing to raise are no longer for startups but later-stage companies.

To best help startups and smaller companies to become competitive in the market and keep the market diverse, some of the top SaaS investors will provide funding for not only the early-stage startup phase but also smaller businesses while they are in later stages as well. For example, unlike a traditional venture capital firm that focuses exclusively on funding startups, Golden Section offers early-stage funding as well as product development services and their community and experience to best help their ventures.

B2B Saas Seed Funds

Just like with a tree or a flower, the “seed” stage is where it all begins.

Because this stage is where everything starts for a startup, it is extremely important. Even with all of the venture capital firms out there, finding B2B seed investors for your startup can be tricky — especially because these investors are the ones who are going to be taking the biggest risk on your idea. However, there are many different seed investors out there and you can find a good few by looking for the top seed investors in your industry — for example, if you are looking to create a SaaS company, you’d want to look for SaaS seed investors.

With all things considered, this seed funding phase is the most crucial for getting your startup, well, started. But, just because you are looking for a seed investor at this stage does not mean that you can’t be thinking about the future of your company as well — in fact, we encourage you to keep the future of your company in mind during this stage. This is because after this early stage you still may need help raising funds to continue growing your business. This is where a venture capital firm that offers support through more than just the early-stage of your business, like Golden Section, can be of service. Golden Section offers not only capital investments but also resources, strategy, and expert support so that you can achieve revenue-driven growth and keep your business performing well.

VC Fund Management

Now, there has been a lot of mention of receiving funding that can help you to start your business, but how are you supposed to go about keeping track of all of your venture capital investors?

There are a few options available for founders to manage their capital-table and the funds that are already raised and keep track of new funds that are being raised. One option is to use a venture capital portfolio tracker that can be easily monitored and used to display the progress of the funds coming in alongside your business’s growth.

Another option is to use capital raising software that can help you easily and efficiently track and manage your fundraising, cap-table and valuation based on your company’s performance. Whatever method you choose to manage and track your fundraising process, it is important that you ensure it is always up-to-date and your company’s growth and valuation is accurately reflected to all of your private equity investors.

Here’s what our partners are saying…

From our MVP in 2015 to demonstrated Product Market Fit to strategic support with our growth funding, the Golden Section team has been an indispensable partner and resource for System Surveyor.

Christopher Hugman
Founder & CEO, System Surveyor

Since QMSC’s inception, Golden Section has provided valuable direction regarding strategic market alignment, branding, and most importantly intuitive guidance for our technology roadmap.

Marshall R. Williams
Founder, QMSC

As an entrepreneur, I need to have a partner who understands my vision, not just a digital order taker. Golden Section has exceeded my expectations, providing tools and people to help grow my business rapidly.

Charles Turner
Founder & CEO, KARE

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