Core System of Record Software for Industry Associations

The company develops an association management system (AMS) designed to support associations in serving their members and growing their impact.

The platform offers customizable membership management systems as well as an online community platform for member engagement, similar to an industry-specific LinkedIn. It also offers a product to assist vendors in generating revenue from association partners. The company's customers include some of the top industry associations in the USA.

Key Highlights
📊 $1.4mm in annual revenue, growing 10% YoY
🏦 $8mm in funding raised
👥 15 employees
🗜️ Overall NDR of 95%, but 115% NDR on the core AMS product

There are three things that stood out to us about this opportunity, which is why we decided to work directly with the team.

High-retention Product
Their AMS product is the core system of record for their association customers and boasts an impressive 115% net dollar retention. While it currently represents just 30% of overall revenue, the AMS product is the fastest growing segment. The vast majority of new revenue coming in is for the AMS product, while the vast majority of churn is on lower quality revenue coming from the community and vendor products.

Clear Path to Profitability
While the company is currently burning $180k/month, it’s spending $190k/month on R&D, most of which is spent on engineers living in HCOL cities in the USA. Buyers who can incorporate R&D into their existing cost structures can operate the company profitably within months of acquisition.

Priced to Sell
The founder has already spoken to investors and are aligned on seeking a sale of the company in the next 6 months, with no explicit floor on price. While a strategic buyer is desired, the team is also open to offers from financial buyers at lower multiples as long as they can transact ASAP.