Rethinking the “Venture or Nothing” Mindset
Why strategic mid-size exits can be smarter than chasing unicorn valuations
Many SaaS founders build strong businesses that generate between $1.5 and $2 million in annual recurring revenue. Yet a large number of these companies eventually hit a wall.
The typical response at that stage is to raise $2 million at a $6 million valuation, which often means giving up a significant portion of what has already been created in order to pursue the venture path.
This isn’t the only option.
There is a viable alternative: sell the company at a fair valuation; often between $8 and $10 million; take home a meaningful outcome as a founder, and build again.
Why Smaller Exits Matter Over Chasing Valuation
Not every company needs to be a $100 million or $1 billion story.
Some exits are $5 million. Some are $8 million. And these outcomes can be both financially and strategically significant.
Many strong products get shut down simply because they don’t fit the venture capital narrative. In reality, many of these businesses could be acquired at four to five times their annual revenue.
Since 2021, dozens of SaaS founders in emerging markets have reached $2 million ARR, struggled to raise capital, and then stalled. These were often healthy, cash-flowing businesses that could have generated excellent returns through strategic or financial acquisitions.
Where Founders Can Sell?
There is a growing ecosystem of buyers looking for profitable SaaS businesses. A few established platforms and networks make this process more accessible:
MicroAcquire (Acquire.com): Marketplace for SaaS acquisitions, especially for bootstrapped or lightly funded startups.
Flippa: Well-suited for smaller or early-stage SaaS products.
FE International: M&A advisory with a strong track record in SaaS.
Quiet Light Brokerage: Focused on profitable, steady-growth online businesses.
Direct strategic buyers: Larger SaaS or enterprise companies often prefer acquiring rather than building.
These platforms typically facilitate exits at 3x to 5x revenue multiples, depending on product quality, customer retention, and growth trajectory.
Small Exits Can go BIG
Smaller exits are not failures. They are strategic outcomes that allow founders to capture value and reinvest their experience into the next venture.
Most successful founders are not first-timers. They’ve sold companies before, learned from the process, and used that foundation to build stronger businesses.
Holding on indefinitely can lead to stagnation. Selling at the right time can create optionality.
Once venture capital is involved, ownership shifts. Control and flexibility diminish. For many founders, selling earlier provides a cleaner path to long-term wealth and freedom.
Sell. Reset. Build again.
Not every startup is meant to be a unicorn.
Some are meant to be $5 million exits. Some are meant to be $8 million wins.
And that’s perfectly fine.