Private Equity Podcast: Karma School of Business Elements of Value in Private Equity (Part 4): How PE Leaders Evaluate Businesses
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Jun 18, 2025 Vinay Kashyap from Mainsail Partners shares insights on evaluating bootstrap B2B software companies with robust growth potential and durable value propositions. He emphasizes the importance of resourceful entrepreneurs and relationship-building in investment decisions. The conversation also highlights innovative evaluation techniques like using a 'red team' for rigorous analysis, assessing founder-led businesses, and the necessity of strategic foresight in fostering scalability and resilience in companies.
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Invest in Bootstrap B2B Software
- Look for bootstrap B2B software companies showing rapid growth and strong product value.
- Build long-term relationships with resourceful entrepreneurs who have deep industry expertise.
Use Market Foresight and Red Teams
- Evaluate market dynamics for long-term prospects, not just the current state.
- Use a red team to rigorously challenge investment assumptions and ensure accountability.
Focus on Leadership and Growth Paths
- Prioritize management integrity, shared vision, and hunger for growth when investing.
- Seek companies with multiple growth avenues like new products, geographies, or acquisitions.