Practical Founders Podcast
#135: Vertical SaaS Investor Shares Proven Paths to Scale Up Big – Dave Yuan
Mar 14, 2025
Dave Yuan, founder of Tidemark Capital and investor in successful vertical SaaS companies like Toast and ServiceTitan, shares invaluable insights on scaling strategies. He discusses the significance of control points in thriving markets and the evolving landscape shaped by AI. Dave emphasizes the importance of community among founders, innovative growth frameworks, and adapting to challenges posed by new technologies. He urges vertical SaaS entrepreneurs to harness AI thoughtfully to enhance their offerings and stay competitive.
55:49
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Tidemark Capital distinguishes itself by prioritizing sustainable growth in vertical SaaS through unique distribution models and operational strategies.
- The concept of 'control points' is essential for vertical SaaS companies, allowing them to command greater engagement and expand their offerings effectively.
Deep dives
Growth Equity Investment Focus
The discussion centers on growth equity investment in vertical SaaS companies, highlighting the strategic approach of Tidemark Capital, led by Dave Yuan. Unlike traditional venture capital, which often pursues rapid growth without a strong consideration for sustainability, Tidemark prioritizes companies that have a unique distribution model and a solid product, even if they operate in smaller markets. This perspective allows them to support companies scaling from $5 to $10 million in annual recurring revenue (ARR) to significantly larger figures, focusing on building category-leading products. The investment approach emphasizes capital efficiency and leveraging operational strategies rather than simply infusing large sums of investment.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
