Why Sumeru’s Founder-Friendly Investment Model Earns National Recognition and Awards
To be a founder-friendly investor, first and foremost, is to recognize the founders’ unique and central role in driving product strategy and creating a corporate culture focused on customer success. Truly exceptional founders are fueled by the passion for product and culture that is required to drive growth. But they are also self-aware enough to recognize that they need operational capabilities and expertise to scale their company to category leadership successfully. These are the founders we work with at Sumeru.
For instance, Sumeru and GoGuardian collaborated on operational scaling, leading to a five-fold increase in ARR to $150M+ in four years while simultaneously driving transformational changes to digital learning in K-12 education.
Similarly, Sumeru partnered with the founders of Azuga, Buildium, Kyriba, and TaskTop by providing operational expertise, and helping accelerate growth and category leadership. For example, during a 3.5-year hold period, we worked with Azuga’s founding team to increase recurring revenue by three-fold organically, leading to a strategic acquisition for $391M.
We also helped Buildium transform its operational model, going from 25% to 40% organic growth within three years while transitioning to profitability, leading to a $580M acquisition. Similar engagements enabled TaskTop to achieve a 2.5 times valuation increase in 18 months and Kyriba to achieve a $1.2 billion exit.
At the core of these notable successes are founder-investor partnerships focused on unlocking potential, which is what we are most proud of.
Why Founder-Friendly Investing Works
Sumeru’s approach to founder-friendly investing works because it is different. Instead of passive capital, we take an active engagement approach, focused on backing (and challenging) founders to grow and scale themselves and their companies. In this role, Sumeru brings best practices in Sales, Marketing, Customer Success, Product Management, and Operations and works side-by-side with founders and management teams to build a great company on top of established product-market fit.
This approach also prioritizes what is special about founders while driving innovation that has meaningful impact on customers. This unique combination benefits the company with faster execution, and growth along with greater performance, while simultaneously reducing risk by avoiding mistakes. This leads to better outcomes for portfolio companies and for our investment approach overall.
Proof is in our References
Sumeru is proud that Inc.com has recognized our work with founders for the second year in a row as a recipient of the Founder-Friendly Investors award.
We also want to thank our founders for providing us the opportunity to partner with you and be part of your vision.
Jason Babcoke is a Managing Director for Sumeru, specializing in partnering with founders and management teams to scale strong product-led companies into category leaders.