Gregg Scoresby founded CampusLogic in Phoenix in 2021 to provide software for colleges and universities in the US to make it easier for students to apply for college loans and grants online. Initially self-funded, CampusLogic raised investment and grew faster, becoming a leading provider of software to universities with $50 million in revenue. In 2022, CampusLogic was acquired by Ellucian for an undisclosed amount.
In 2023, Gregg launched PHX Ventures, a $27 million seed-funded supporting early-stage B2B SaaS founders in Phoenix, Arizona. Unlike the traditional VC approach, PHX Ventures supports startups that are growing fast with a capital-efficient approach. PHX Ventures also helps the larger software community in Phoenix with educational events and networks to connect founders, talent, experts, and capital.
In this expert episode, Gregg answers common questions about when practical venture funding can be useful for founders and what it means to be capital efficient.
Capital efficient SaaS topics discussed on this podcast:
- How Gregg started, grew, and sold his third company, CampusLogic
- Why he decided to create a seed fund for high-growth B2B SaaS companies in Phoenix, Arizona
- Why he thinks B2B SaaS in Phoenix has huge potential and why there is a “venture deficit” in Arizona
- Why capital efficiency and fast growth are not mutually exclusive in the software business
- When a SaaS founder shouldn’t raise funding and when funding can be practical and useful
Best quote from Gregg Scoresby of PHX Ventures
“I don’t think founders should raise more just to raise more. In fact, if you could raise nothing, you should raise nothing. If you can build a company and achieve the type of outcome that you want to achieve and not raise capital, you should do that. 100%.
“But there are several things that could justify a founder taking outside capital. Like when a B2B SaaS company is efficient and they’re a high growth company, but they’re in a very competitive market and they want to be number one in that market. You want to hire more salespeople, so you can’t just wait until I’ve got a couple hundred thousand dollars in the bank.”
“Or if you have to build a new product or there’s a lot of complexity with building in a regulated environment. Those can be good reasons for going faster with outside investment.”
