Invest with Metatransformer AI SaaS Group
20
Expected Deals/Year
0
Unique LPs have invested
Note from Metatransformer AI SaaS Group
Software being developed today is poised to overhaul legacy systems entirely, setting the stage for 2024-2026 as a pivotal period for the emergence of numerous billion-dollar startups.
At Metatransformer, we specialize in investing in startups at their pre-seed stage, typically when they're valued between $5 million and $10 million. Achieving a valuation of over a billion dollars would yield a return of 100 times for our syndicate members. Given the transformative impact of AI on the economy, we anticipate multiple successes, not just isolated wins.
Our investment criteria focus on founders with substantial sales experience in specific industries. These individuals are seasoned entrepreneurs, far removed from the stereotype of youthful coders starting out in their basements. They are experienced business leaders who recognize the potential of generative AI to create groundbreaking products and tap into multi-billion dollar markets.
As a CTO and startup veteran, I understand that attracting top technical talent hinges on having the necessary funds. With the ongoing layoffs in major tech firms—companies that are struggling to compete with agile startups—we see a wealth of skilled technologists eager to join innovative ventures.
We prioritize companies led by founders who are actively involved in selling their product. A key question we ask is, "Do you personally pick up the phone to sell your product?" We favor those who engage directly and consistently in sales efforts.
Reflecting on my early career, I recall my mentor, Rick Carlson, who founded Sharpspring.com. He set an ambitious target to sell 30 subscriptions monthly at $500 each, achieving $16,000 in monthly recurring revenue (MRR). Within a year, his direct sales efforts secured $180,000 MRR, exemplifying the potential for rapid growth in tech startups.
Thesis Summary
- Our founders are laser focused on an outbound sales approach. This removes the most common startup risk: a lack of revenue.
- Our founders have direct experience and deep networks in their vertical of choice. This leads to a profitable business model and early partnerships / sales
- The products we invest in are Subscription based software platforms that automate and assist in workloads traditionally done knowledge workers. I.e. Compliance, Medical Billing, Legal, Proposal Writing, Sales Research. These products provide real value to niche verticals.
- The products we invest in have higher price points, generally between $500-$5,000/month per company.
In conclusion, we invest in valuable AI businesses with the ability to rapidly scale. We believe this is a massive opportunity over the next 2-5 years.
