Third South Capital

Third South Capital is a holding company focused on acquiring and operating niche software businesses.

We also help teams build AI as a competency they own, and run technical due diligence for software acquisitions.

Thesis

We live in the gap between cash-flowing software businesses that have outgrown a single founder's bandwidth, but haven't yet hit the size thresholds that attract traditional institutional capital. This is the zone where focused capital and hands-on operations have the clearest edge.

Most capital chases the bookends: traditional venture and late-stage growth chase outsized exits, while many entrepreneurs raise on an idea. Few organizations are interested in the valley between: healthy, profitable businesses poised to grow further with capital and domain expertise.

We buy SaaS products or businesses which have:

• At least $50k in monthly recurring revenue (MRR)
• Clearly demonstrated product-market fit
• A stable or steadily growing revenue trajectory
• Low operational overhead with real cash flow generation
• Opportunities for further growth with investments in sales, marketing, and development

This is the right fit if you're a founder who:

• Built something awesome but no longer have the time or interest to run it
• Are looking to transition out of direct, day-to-day management
• Want to find liquidity to fund a larger, more ambitious venture
• Know your company has room to grow, but its needs have outgrown your bandwidth or what you want to focus on
• Don't have the correct capital structure for your business, and want to reset

Current Portfolio

• Blue Canary Software, a suite of Zendesk applications including TissueApp and GitZen, used by thousands of agents
• Icon Horse, the easiest way for developers to retrieve icons for a given URL
• Clipboard History Pro, the best browser plugin for managing your clipboard (excellent for our friends who spend a lot of time using Ctrl+C / Ctrl+V)
• EntryThingy, gallery and open-call management for arts organizations
• Shopping Cart Apps, a Shopify app for syncing e-commerce tools with advertisers

Services

• AI Implementation: we embed with your team to build human-in-the-loop AI systems your team can run without us. We're operators first.
• Technical Due Diligence: for acquirers evaluating software in M&A, and ongoing execution for software businesses you own.

Story and Team

We are a team of four friends who enjoy owning and growing software businesses.

Third South Capital officially began when Harrison introduced Colin and Justin. The three of us had each been independently obsessed with the idea of owning a portfolio of small businesses. We decided to put our efforts together and settled on software as a focus.

Over many long discussions, several months, and a few failed deals, we ended up closing on our first couple of acquisitions. We came up with the original name given all three of us lived in the same college dorm (on the top floor in the same section): Yates Third South.

As Third South continued to ramp up, Myles got to know the three of us well. Myles began doing part-time work on the portfolio and eventually joined us full-time as the fourth Partner.

The four of us each bring different skills and experience to our investment team. Between us:

• Invested in public, world-class software companies and understood them inside and out
• Started and scaled our own SaaS businesses from scratch
• Run engineering teams at Amazon and Stripe
• Founded and worked at startups, big and small, for-profit and non-profit
• Managed capital for large, institutional investors
• Worked with sellers to perform due diligence and execute acquisitions

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Contact

Email us: hi@thirdsouth.capital

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