Serial Acquirers Market Update: Landmark Canadian Funding & SaaS Acquisition Power Grows
At the beginning of this year, if you had told me that the largest software funding round ever for a Canadian tech company would come at the end of July, I wouldn’t have believed you. But last week, Burnaby, BC’s own Clio became the world's most valuable legal SaaS company, closing a $1.24 billion Series F round with a pre-money valuation exceeding $4 billion. Clio's growth is a testament to the potential of Canadian tech firms to lead in innovative sectors. This funding round highlights the ongoing trend of substantial investments in companies adopting AI and cloud technology and cements Clio as a key player in the global legal tech industry and Canada as a major part of the world’s tech scene. I’m very excited to see how Clio implements this funding and how future Canadian tech deals look after this major move.
Vertical SaaS Acquisitions Accelerate with Cash Injection
Arcadea Group, based in Toronto and Orlando, has secured $336 million to accelerate its acquisitions of vertical software-as-a-service (VSaaS) companies, increasing its permanently committed capital to $690 million. Founded in 2021 by ex-Constellation Software directors, Arcadea focuses on the long-term growth of bootstrapped, founder-controlled VSaaS businesses worldwide. Again, we are seeing the ongoing trend of significant capital inflows into SaaS companies, highlighting the growing investor confidence and interest in the sector's long-term potential. I am particularly interested and eager to read about how Arcadea uses this new chunk of change and which SaaS companies they look to acquire.
In Case You Missed It…
The other day, I came across a tweet from a stock trader discussing how stock returns can be made "easily." That interaction became the inspiration for me writing this article where I highlight examples of traders who soared high only to crash due to hubris. Instead of chasing quick, "easy" gains, I advocate for investing in entrepreneurs with strong ideas and disciplined capital allocation. If your business aligns with these principles, please reach out to SureSwift Capital or me directly to discuss.
Being the preferred buyer is one of the greatest advantages any acquirer can have. But when you’re not Warren Buffet, or have the resounding reputation that companies like Berkshire Hathaway do, what does it take to become a preferred buyer? Understanding that founders are looking for more than just a selling price is critical; they seek buyers who will protect and grow the legacy of their business, ensuring long-term success.