How Golden Section invests, what we look for, what we pass on, and how the lending side works.
Golden Section invests in B2B vertical SaaS — software built for one industry, with genuine workflow integration and real switching costs. We look for companies at $1M–$8M in annual revenue, net revenue retention above 100%, gross margins above 65%, and a founder with domain expertise in their vertical. We pass on horizontal platforms without a clear vertical focus, consumer models, hardware, marketplaces, and services-heavy businesses.
Golden Section writes $1M–$5M initial checks, with follow-on capital available for companies on The Balanced Path. We take a minority equity position and are never the majority owner. The instrument is preferred equity with plain-English protective provisions and no participating preferred.
$1M–$8M in annual revenue, scaling toward $15M. That is later than seed and earlier than classic growth equity: the product works and the customers are real, but the company has not yet built PE-grade operating discipline. We pass on pre-revenue companies and generally on anything under $500K in annual revenue.
Golden Section underwrites annual revenue — total revenue on an annualized basis — rather than ARR alone, because durable vertical software businesses often carry meaningful implementation, services, and usage revenue alongside subscription revenue. Measuring only ARR understates the size and the health of exactly the kind of business we look for. We still use ARR precisely where ARR is the right measure: net revenue retention, ARR multiples, and the ARR bridge in lending underwriting.
Yes — Golden Section almost exclusively leads its rounds. We take a minority equity position, set terms in plain-English documents with no participating preferred, and take one board seat per investment. Founders looking for a passive follow-on check are not a fit.
Yes — one board seat per investment, with active participation. Because Golden Section holds a minority position and is never the majority owner, the seat is about operating partnership rather than control. Founders who are not open to board oversight and financial discipline are not a fit.
Golden Section passes on horizontal platforms without a clear vertical focus, consumer and B2C models, hardware, marketplace and services-heavy businesses, and companies with net revenue retention below 85%. We also pass on growth-at-all-costs burn profiles with no plan to change them, founders who prioritize valuation over value creation, and companies looking for a passive check.
A meaningful exit is one that rewards the founder and the journey, not just the transaction. Golden Section defines it across nine dimensions: financial outcomes, product legacy, team and culture, customer impact, community contribution, health and growth, peace and wellbeing, organizational continuity, and family alignment. Portfolio companies typically target a strategic exit at $5M–$15M in annual revenue, reached through a strategic acquirer, a private equity recapitalization, an ESOP, or a founder buyout via debt.
Golden Section underwrites capital efficiency rather than growth at all costs. Traditional venture capital depends on a small number of very large outcomes; our model works through disciplined companies reaching sustainable profitability — 10% net profit, then 20% — and exiting at $5M–$15M in annual revenue. We take minority positions and one board seat, and we pair equity with non-dilutive lending so founders keep more of what they build.
Yes. Golden Section Lending provides revenue-based financing and SaaS term loans of $500K–$5M, underwritten on ARR quality rather than EBITDA. Revenue-based facilities typically run 12–24 months with payments based on monthly receipts; term loans run 24–48 months with fixed payments and an interest-only period available for qualified borrowers. Minimums start at $1M ARR with 90%+ net revenue retention.
More detail on the equity side is on Ventures, and on the non-dilutive side on Lending. Founders can reach us at contact@goldensection.com.