Collin Gutman, Managing Partner at SaaS Ventures, recently achieved a milestone with his two-hundredth investment, reflecting on his journey in the seed-stage investment landscape.
Gutman has been active in the startup ecosystem for over fifteen years. He initially founded Acceleprise, now known as Forum Ventures, to focus exclusively on B2B software. In 2017, he established SaaS Ventures, which has since evolved into a diverse investment vehicle comprising multiple funds.
His recent investment count marks him as one of the few early-stage investors to reach such a figure, underscoring his significant contributions to the field.
In a conversation with Refresh Miami, Gutman elaborated on his move to Miami and his views on the city’s burgeoning tech scene.
Gutman relocated to Coral Gables in late 2020, seeking better weather, diversity, and a community less entrenched in politics compared to his former home in Washington, D.C. The East Coast proximity to family was a crucial factor in choosing Miami, and after experiencing the city through a year-long rental, he and his wife decided to settle down permanently.
Looking ahead to 2025, Gutman noted that Miami’s technology landscape resembles that of D.C. in 2011, characterized by a growing number of anchor companies, an influx of talent from cities like New York and Israel, and rich knowledge in areas like cybersecurity. Despite critiques comparing Miami to Silicon Valley, Gutman observes that the density of experienced founders and active venture funds in Miami offers a unique advantage for investors in the seed stage.
Interestingly, Gutman revealed that his relocation has not significantly boosted his fundraising efforts. Although some limited partners are located in South Florida, most of his existing limited partners were established before his move. He pointed out that local high-net-worth individuals tend to stay within their circles, making it challenging for new general partners (GPs) to tap into those networks immediately.
SaaS Ventures manages several investment vehicles, beginning with a $20 million flagship fund in 2017, followed by a $50 million Fund II that closed in 2020. In 2023, Gutman launched a small growth fund to engage in later-stage rounds. The latest flagship, Fund III, also reached the $50 million mark at the turn of 2024. Gutman emphasized that their approach prioritizes measured growth, which aligns with their investment thesis in enterprise software outside the largest tech hubs.
According to Gutman, there are three primary reasons for focusing on what he describes as ‘second-tier’ geographies.
First is the reduced competition at the pre-seed and seed stages, resulting in more rational pricing and an openness among local investors to syndicate deals.
Secondly, companies in cities like St. Louis and Grand Rapids often prioritize early revenue generation over chasing viral headlines.
Lastly, he noted a distinct mindset among founders based in these locations. They often aim to build sustainable businesses rather than focusing solely on rising valuations. With investments spanning 32 states, Gutman feels their broader reach allows them to uncover talent that others might overlook.
When discussing the stages and ticket sizes that fit his fund best, Gutman indicated they generally write checks providing 3% to 4% ownership. At the lower end, they can invest $100,000 at a $2 million pre-money valuation, while higher-end investments might go up to $700,000 at mid-teen valuations. Most rounds they participate in fall within a $6 million to $10 million post-money range, with typical checks landing between $250,000 and $400,000. Currently, they are particularly interested in very early rounds priced around $5 million post and ‘mini-A’ rounds involving companies with $11 million to $20 million in annual recurring revenue, yet priced in the high teens.
Gutting’s engagement in Miami’s startup ecosystem has been notable. He has backed three teams with Miami-based founders, two of which have their entire teams based in the city, while one has a distributed team.
FirmPilot stands out among his investments. SaaS Ventures led its pre-seed round, and after a successful Series A led by Blumberg Capital, the company has achieved mid-single-digit revenue in about thirty months. In a testament to Miami’s vibrant business climate, it’s also noteworthy that two companies on the same floor of their Wynwood office building have reached nine-figure valuations.
For aspiring founders seeking investment from Gutman, he advises them to be strategic in their approach. He personally reviews every inbound message and can identify when a template is used for mass outreach. He recommends crafting a brief, personalized note that aligns with SaaS Ventures’ investment thesis, as this approach leads to a more favorable response.
While Gutman acknowledges certain limitations within Miami’s market, particularly regarding talent scarcity for specific roles, he believes the city remains a jewel for hybrid or remote firms. He can facilitate introductions to other venture capitalists and well-accomplished entrepreneurs, emphasizing the tight-knit community welcoming newcomers who contribute meaningfully.
Looking ahead, SaaS Ventures plans to maintain its focus on early-stage enterprise software outside established tech hubs. Gutman expects to open Fund IV around late 2026, while also refining their growth strategy initiated in 2023, which involves investing alongside top-tier firms during later funding stages.
He concluded by emphasizing the importance of keeping the fund’s size manageable. He believes that if they expand too significantly, they would either be compelled to pursue deals in unfamiliar markets or engage in crowded rounds, which could dilute the value they provide to founders. By maintaining an appropriately sized fund, SaaS Ventures can remain agile, connected to founders, and focused on generating compelling returns.
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