#180: AI Is Not Killing Vertical SaaS - It's Practical Leverage - Deepak Sindwani
Practical Founders Podcast
Target Company Profile and Investment Size
Deepak describes the ideal founders, typical growth rates, profitability requirement, and average check sizes and uses of capital.
Deepak Sindwani is Managing Partner at Wavecrest Growth Partners, an active growth equity firm backing bootstrapped and lightly funded SaaS founders. They work with practical founders who've built profitable businesses to $5–$20M ARR and want help growing without VC pressure or losing control.
Wavecrest invests in vertical SaaS companies growing 30–60% annually, typically profitable or breakeven. They help founders scale sales, pricing, analytics, and leadership teams while staying capital efficient. Investments are usually $10–$30M total, with founders often taking some liquidity while continuing to lead.
Even with the excitement around AI-first companies from VCs, Deepak sees efficient growth equity in practical vertical SaaS as a great investment and a big opportunity for founders. AI is helping serious practical founders, not making them irrelevant.
Key Takeaways
- Capital Efficiency Matters — Wavecrest only backs profitable or breakeven SaaS companies that already respect the business model fundamentals.
- Founder Liquidity Helps — Taking some money off the table reduces stress and helps founders make better long-term decisions.
- Vertical SaaS Wins — Deep industry knowledge and data create defensibility AI-first competitors struggle to replicate.
- AI Is Additive — Software plus AI and data creates more value than AI replacing SaaS systems of record.
- No One-Size Playbook — Growth equity works best when strategies are customized, not forced by rigid PE-style playbooks.
Quote from Deepak Sindwani, Managing Partner at Wavecrest Growth Partners
"We don't think B2B SaaS is dead. It may create great headlines to say, AI eats software. We think software plus AI is the right approach. Software, AI plus data. So they're harvesting and creating that data moat that is going to help make them defensible.
"Then, using the AI tools, why not use the AI tools to provide more automation for customers? That's what we really think AI does: increase the ability to automate the use of their product and to get value. "Every company that we're involved with has some AI initiative. How am I changing how I run my business? How am I changing marketing and sales and finance and customer success using AI? Every company is doing something in every function in terms of new tools and tests."
Links
Podcast Sponsor – Lighter CapitalThis podcast is sponsored by Lighter Capital.
In the last 15 years, Lighter Capital has helped over 600 software and SaaS founders secure simple, non-dilutive financing to grow a little faster—without giving up any precious equity or board seats to investors.
Simple debt funding from Lighter Capital can range from $50K to $10 million, with straightforward terms, no personal guarantees or covenants, and up to a 4-year payback period.
Go to LighterCapital.com to apply and get a quick pre-qualification. Then talk with their experienced team to create a practical funding plan to achieve your goals.
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