A Look at the Financials for Startup Businesses in the Industry
It’s a profitable market, by the way. The market for SaaS businesses of the type that TinySeed is looking for was expected to reach $157 billion in size in 2020 — that’s more than double its value in 2014, according to market research firm Statista.
Rob Walling, the founder of TinySeed, believes his company is helping SaaS startup businesses take advantage of a more collaborative, less dog-eat-dog approach to startup funding.
Creating “Sane Startup” SaaS Businesses
“We believe that designing a funding structure that fairly aligns founders and investors in this way will mean a lot more capital will flow into this ecosystem and hence allow many more businesses like this to be built,” Walking said in an interview with Hacker Noon.
“This also means they can grow at a healthier pace and don’t need to force growth to raise their next funding round. I like to think of this as building a sane startup,” he said. “That is, a startup that values people over results, has reasonable working hours, provides ample days away from the office, and generally doesn’t burn out the people involved.”
A sane startup sounds pretty good, and TinySeed has thus far found quite a few of them. In its two rounds of funding, titled the 2019 and 2020 cohorts, TinySeed helped companies like BlueRithm, Builder Prime, CodeSubmit, Branch, Castos, ClientRock, and more than a dozen others.
Recommendations from the Startup Businesses
These SaaS startup businesses seem to believe in TinySeed’s vision, if Ruben Gamez of Docsketch is any indication.
“When I was considering taking funding from TinySeed one of the biggest areas of concern was that I’d suddenly feel extra pressure and stress from having investors,” he said. “Instead, the combination of having extra resources and the TinySeed support network (while keeping the flexibility of bootstrapping) has felt like a weight off my shoulders.”
About the Author
Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.