Liquidity Environment and M&A Trends

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

• Deepak Sindwani on LinkedIn
• Wavecrest Growth on LinkedIn
• Wavecrest Growth Partners website

This podcast is sponsored by Lighter Capital.

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