Krista Morgan started her first tech company by raising funding and trying to grow very fast. When the company faced a big issue and failed, she learned that big funding was more of a problem than a help in the growth and wind-down processes.

Krista is now CEO and General Partner of Stage Fund, an early-stage private equity fund that makes control acquisitions of venture-funded SaaS companies that are stuck and need an alternative option to continue in a practical and profitable way.

In this expert episode, Krista explains:

• Why “growth at all costs” rarely works for software companies
• Why VCs and funded founders don’t plan for the likely scenario that the company won’t have a successful exit
• What’s happening in M&A for practical SaaS companies
• Why acquiring software companies to grow is often less risky than growing organically
• How to approach potential future acquirers to have a conversation about someday joining forces

Quote from Krista Morgan, General Partner of Stage Fund

”When I was a funded tech founder, I thought I was going to hire this magical VP of sales and they’re going to solve my revenue growth problem. But paying a big salary for someone who’s gonna take three months to ramp up before they can start to work on the problem is not your answer.

“I hired four VPs of Sales and none of them ever worked out. Now, as an investor, I tell founders: You already have a great team. You already know the market. You already have everything you need. You just need to trust it and just make a choice and go.

“A magical person is usually not the answer. If that’s where you think the answer is, it’s because you don’t understand the problem well enough, you’re just not thinking creatively enough, or you don’t trust yourself.”