Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Tuesday, June 2, 2020

Q2.2020 - SharpSpring: Valid Niche Idea With Limited Upside (short)


  • Despite market validation, the overall growth opportunity seems unattractive.
  • As a $20 million-a-year SaaS CRM business, SharpSpring's 17% recurring revenue growth in 2019 is below par.
  • Growth may not be sustainable. The business burned through ~3 million and 8 million of OCF in the last two years, which were 20% and 36% of revenues consecutively.

In our view, SharpSpring (SHSP) has a valid SaaS offering that fits into its agency niche marketing automation CRM market. However, we see limited upside potential in the business due to the market saturation, competition, and the scalability of its go-to-market. Despite our long-term bullish view on the SaaS CRM market in general, we found it difficult to be bullish on SharpSpring.

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