SaaS adoption has proliferated across nearly every industry vertical and business function to the point where it is now nearly ubiquitous throughout the economy. This has created multiple market opportunities for businesses utilizing an “API-first” strategy, whereby they offer new products or services via API that complement existing SaaS applications or they use API technology to break down data silos and connect what would otherwise be disparate data sets. A handful of first-movers have capitalized on a subset of these opportunities in both products & services (e.g., Twilio in voice & text, Stripe in payments) and data aggregation (e.g., MuleSoft for enterprises, Plaid for FinTech / financial institutions). We believe this dynamic is still in its early days and that there will be many future opportunities for growth investors with strong SaaS experience to partner with these businesses.
Catalyst has a long-standing history investing in businesses at the intersection of SaaS and financial services & technology, with most recent examples including MINDBODY (payments & business management SaaS for health & wellness businesses), Clinicient (revenue cycle management collections, EMR, and practice management SaaS for physical & occupational therapists), and Fusion Risk Management (business continuity SaaS sold to financial institutions and other F1000 enterprises).
Catalyst is exploring the Retail Analytics space defined as the technologies that brands and retailers leverage to increase the likelihood of initial and repeat purchases (store management, sales and marketing, finance and inventory, customer experience, pure-play analytics, etc.).
At the growth stage of the funding lifecycle, companies are at an inflection point and are evaluating which strategic hires they need to make as they scale. Regardless of stage, industry, headcount, or funding, most growth companies need help building out their finance departments. Growth-stage companies in particular seek to recruit additional financial expertise (including capital formation experience and operations acumen), replace existing talent, or staff up the department for the first time.
To capitalize on this exciting trend, Catalyst is beginning to explore the Data-Driven Customer Experience Management (“Data-Driven CXM”) space.
Catalyst Investors is seeking a pre-MBA Associate to assist the Investment Team. Investment responsibilities include deal origination, investment screening and transaction execution. This position is uniquely suited to candidates seeking a hybrid experience of deal sourcing and transaction execution. The pre-MBA Associate will have the opportunity to work directly with senior members of the Investment Team.
U.S. Legal Services is a $430 billion industry comprising roughly 2% of the domestic economy. However, law firms and corporate law departments are relatively underpenetrated by technology thus we have yet to see a robust volume of venture-backed legal tech companies achieving scale, nor a single Legal Tech company to go public. Candidly, lawyers do not make the best purchasers of technology; law firms and legal departments lack substantial tech budgets, sophistication and willingness to adopt technology. However, we believe that a confluence of factors is catalyzing a dramatic transformation in the industry.
Real estate assets are a major contributor to the U.S. GDP. Now consider the amount of work it takes to maintain such a large asset class, which consists of all residential and commercial buildings around the country. Real Estate Technology (“RETech”) companies are doing just this, developing web and mobile solutions capable of addressing the multiple pain points associated with developing, owning and renting real estate.
Catalyst believes that Travel Tech presents a compelling market opportunity and welcomes discussion with growth-stage B2B or B2B2C business in the space. For our first foray into the New Wave of Travel Tech, we frame the broader market by separating it into three main verticals: transportation, lodging and activities.
The optimal way for brands to drive online sales is, counterintuitively, to open more brick and mortar stores… so long as the retailers 1) differentiate, 2) offer an experience, 3) prioritize data, and 4) build out a robust supply chain solution.