#Think3 and esw software

вЂњFounders should think of вЂtimeвЂ™ as their portfolio - making the call earlier if their current company is growing fast enough for exit velocity.

We go the other way, where we encourage them to go start their next company.вЂќ He confirmed that the $1 billion has already been secured for the venture. вЂњMost PE firms require the founder and team to stay on with the acquired company. вЂњThink3 is the only PE fund that is targeted towards enabling entrepreneurs to take another shot at starting their next company,вЂќ said Tryba. The aim is to let founders make the transition in 100 days from the close of the sale. Rather, its aim is the вЂњmodestly-growing companyвЂќ, which Think3 wants to buy out in order to take the founders out of them and put them back into startup land. Think3 - based out of Austin and an offshoot of another enterprise buy-out firm called ESW Capital, which has made about 50 acquisitions to date - is not your average PE firm, which typically targets older and bigger companies that are failing to grow fast and could do with some restructuring before being put out to market again. We typically pay one to two times revenue for the company.вЂќ вЂњThese companies can be making or losing money. вЂњThe sweet spot of the companies we target are in the $5-30 million in revenue range though we are happy to look at larger companies also,вЂќ CEO and founder Andy Tryba said in an interview with TechCrunch - sent by email as he was travelling back from the Saastr event in San Francisco (where he may have already started his scouting). It will aim to spend between $5 million and $30 million on these startups - although the price may vary.

#Think3 and esw software

Now a new private equity firm called Think3 has been founded with $1 billion in backing with an aim of buying these up, specifically startups working the area of Software as a Service, so that their founders can go out and build new companies again, giving them either $500,000 (with no equity) or $1 million (with equity) in funding to do so. But what about the startups in the middle - reasonably good companies that arenвЂ™t going away anytime soon, but also arenвЂ™t exactly setting the world on fire?

We all know about the unicorns of the startup world - fast-growing companies that appear to be on the road (or have already arrived at) valuations of $1 billion or more - and we hear a lot about the unfortunate ones that either run out of money or fail for another reason.