Twice in the Game of Building Software for 8 & 7 Figure SaaS Exits
In the world of Software as a Service (SaaS) and Software development reaching an 8 and 7 figure exit is the dream of many entrepreneurs. It’s a testament to the hard work, vision, and strategic execution that goes into building a successful product. At DCNEARSHORE, we’ve had the privilege of playing a pivotal role in that journey twice, helping founders to develop and scale software products that culminated in two impressive seven-figure exits.
In 2013, I had the unique opportunity to contribute to the successful acquisition of MortgageCEO by Ellie Mae based in Pleasanton in San Francisco California. DCNEARSHORE had initially provided software development services for MortgageCEO, playing a crucial role in building and evolving their CRM and marketing automation tools for the mortgage industry. Following the acquisition, our team continued to work closely with Ellie Mae, integrating MortgageCEO’s innovative technology into Ellie Mae’s Encompass software suite. This seamless collaboration between the engineering teams helped boost Ellie Mae’s offerings and solidified the value of the acquisition. Our involvement not only enhanced the product but also demonstrated the power of consistent, high-quality software development in driving successful seven-figure exits.
In 2021, I played a key role in the acquisition of Sprout, a leading cannabis CRM and marketing platform, by WM Technology, Inc., the parent company of Weedmaps. Over the course of three years post acquisition, DCNEARSHORE built a world-class software engineering department in an Staff Augmentation agreement, providing a dedicated team of up to 12 engineers to continuously enhance and refine the CRM systems and integrations. We developed key features that made the product competitive and compliant in the highly regulated cannabis market. After the acquisition, our team seamlessly collaborated with WM Technology’s engineers to integrate these innovations into Weedmaps’ ecosystem, helping to solidify its position as a comprehensive technology leader in the cannabis space. This acquisition underscored the importance of long-term, quality software development in driving successful, high-value exists in emerging industries.
That said, we share some insights that we have learned from these accomplishments.
1. Understanding the SaaS Journey
The journey to an 7-figure exit doesn’t happen overnight. It’s a process that begins with understanding the market, identifying a unique value proposition, and developing a scalable product. Our approach at DCNEARSHORE is to be agile, move fast, prioritize what truly needs to be prioritized, and invest effort in what will actually bring value to the business. It is imperative to understand the product and be able to translate the vision of the Founder into actionable items in order to ignite massive amounts of focused action.
2. The Role of Technology in Scaling
Technology is at the core of any SaaS product, and building the right tech stack is crucial. Our team of experienced developers has expertise in a wide array of technologies, from Python and Node.js to AWS and React. This allows us to craft robust, scalable solutions that can handle the demands of a growing user base.
In both of our 7-figure success stories, we inherited legacy code, which was challenging, but we learned a great deal about the importance of stability and scalability when running software that already has paying clients. By leveraging cloud infrastructure and employing best practices in software architecture, we ensured that these SaaS products were prepared for rapid growth without compromising performance.
3. Distinguishing Signal from Noise
There is a difference between what’s desirable and what actually brings value to clients. That’s the art of the Founder—identifying the signal from the noise. Time and resources must be allocated wisely, and as a software development partner, our role is to translate that vision into reality. All our activities must be focused on achieving the Founder’s vision as quickly as possible without compromising stability and scalability.
4. Navigating the Exit Process
Reaching an 7-figure exit involves more than just having a great product; it requires strategic planning and a deep understanding of the M&A landscape. At DCNEARSHORE, we support our clients through every stage of the exit process, from preparing the software for due diligence to ensuring smooth transitions post-acquisition. You need a software development partner that will go the extra mile. In both of our successful exits, we traveled back and forth to meet with teams on the East Coast and in California several times. We were prepared to represent the company in meetings and negotiations from a technical perspective.
5. You Need a Partner You Can Trust
When your reputation is on the line, you need to do business with a partner you can trust. You also need a partner who won’t drop the ball in tough negotiations and who, in addition to technical competence, has the communication and soft skills to represent the company during the sophisticated scrutiny of an exit. Developing long-term relationships with our clients has been in the DNA of DCNEARSHORE since we started our journey in 2012. This is why we have been successful at what we do.
Conclusion
At DCNEARSHORE, we’re proud to have played a role in building software that led to two impressive 7-figure SaaS exits. Our experience and expertise in this field make us a trusted partner for SaaS companies looking to scale and achieve similar success. Whether you’re just starting your journey or looking to take your product to the next level, we’re here to help you navigate the path to a successful exit.
Are you ready to build the next big SaaS success story? Let’s get to work together.