h2. Value creation through secondary growth equity transactions

h3. Secondary growth equity transactions are a useful and increasingly common financing mechanism for founders of technology businesses. A secondary growth equity transaction is one where an investor acquires shares from existing shareholders (with or without the addition of primary capital).

There are a number of situations in which a secondary investment from a growth equity firm can unlock value or solve challenges facing founder-led businesses.

In the attached Whitepaper we list some of the key types of secondary growth equity transactions and include examples of investments that we have made in each category.

h2. Deciding If and When a Founder Should Sell.

h3. Entrepreneurs who own a major stake in their business are often faced with the question of whether and when to sell their shares. This can be the hardest decision to make because the stakes are high – both through indecision or a misstep, and at the same time emotional because of the potential changes involved.

As an advisor and investor Javier Rojas has often helped founders answer these questions. In the process he has developed a model for breaking down the decision process and helping to come to the right answer given the appropriate set of circumstances.

This article was originally published at The Sterling Report

h2. How to convert from a licence to a subscription model.

h3. The founders of many software companies want to make the transition to becoming a SaaS vendor. The operational challenges of making this shift are significant, impacting every part of the company: technology, sales, services and pricing. Not least, the transition can have a dramatic impact on cash collection which, if not managed appropriately, can sink the business.

We have worked with a number of software vendors that have made the transition to SaaS and have found some useful lessons to ensure success. In several cases we have been able to complete the shift fairly quickly, migrating to a recurring revenue model for the majority of the business in as little as two quarters. Here are some key lessons learned that have worked well for these companies.

This article was originally published at SandHill.com – Business Strategy for Software Executives

In this white paper we explain why bootstrapping creates better companies and explore the key issues around bootstrapping, including how to choose the right time to raise capital.