Think3, a Texas based private equity fund for SaaS founders, has announced it is introducing a $1 billion fund to encourage and empower entrepreneurs to take more shots at developing the next unicorn. Instead of holding onto their current, modestly-growing company, the fund will buy their company and transition founders in 100 days to take their full team and build their next startup, providing $500,000 in a no-equity angel round to get started.
"We developed this fund to enable founders to take more shots on goal," said Andy Tryba, founder and CEO of Think3. "Founders should think of 'time' as their portfolio — making the call earlier if their current company is growing fast enough for exit velocity. Too many founders hang on too long hoping for a growth miracle — killing their career."
With a 30 percent decline in US startup exits over the last four years, companies are staying private longer. This is fundamentally bad for entrepreneurs as it reduces the number of companies they can start in their entrepreneurial lifespan.
On average, most founders only have a 15-year lifespan available during their careers as a startup entrepreneur. If they launch a company and hang on for seven to eight years, for example, they have two shots to achieve their unicorn. If instead founders transition every three years, they have five shots. People undervalue their time, but it's the most valuable asset they have.
"We've learned that what founders really want is another shot at building a great company — but they don't want to let their current teams, investors or customers down. We are the only fund designed to encourage founders and their teams to go start their next company," said Tryba.
Think3, part of the ESW Capital family, has developed a unique process to enable the founder and their team to transition out in 100 days while ensuring that the business and success of its customers continues. This process has been effectively applied across 50 companies over the last decade.
The Think3 fund enables founders to adopt a time-based portfolio approach by offering to:
- Buy their SaaS company
- Pay $500,000 in cash, no strings, no equity seed round (or $1 million with equity)
- Complete diligence and close in four weeks
- Transition founder and team in 100 days, so they can take their team and build their next startup
- Introduce founder and team to key VCs to help launch their new startup
Think3 says it is embarking upon this initiative to connect talented SaaS founders and startup entrepreneurs with meaningful and impactful opportunities that will allow their unique abilities, innovations and visions to more fully benefit themselves, their teams and the world at large.