Our Investment in Vendasta
by Brad Feld
We are pleased to announce our investment in Vendasta’s CAD 20m financing. In connection with the financing, the company will convert a CAD 52.5m debenture to equity and subsequently have no outstanding debt. Vendasta is led by co-founder and CEO Brendan King, a multi-time entrepreneur who started the company 15 years ago.
Vendasta is a scaled B2B SaaS company that sells marketing, sales, and other software solutions to SMB customers (SaaS SMB) via a well-developed reseller channel. The SMB market is a particularly challenging one to sell to, and the venture-backed landscape is littered with companies that have tried to sell point solutions, specialized products, or proprietary solutions directly to SMB customers and have yet to scale successfully. Vendasta’s reseller channel is a key differentiating factor that has allowed it to unlock the SaaS SMB market successfully.
We got to know Vendasta through their acquisition of Yesware, one of our portfolio companies with a SaaS SMB customer base for sales enablement. After that acquisition, we began discussing Broadly, another company in our portfolio with a SaaS SMB customer base. Vendasta acquired Broadly, and soon after, we expressed interest in investing additional capital directly in Vendasta.
Vendasta is a company we think of as a Silent Killer. While not widely known in the broader venture community, Vendasta has built a sizable, unique business that solves a crucial part of the problem of selling SaaS software to SMBs.
We are excited to be part of helping Vendasta on the next stage of its journey.