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

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Thesis

Most capital chases the bookends - traditional venture and late-stage growth are looking for outsized exits, and many entrepreneurs are looking for funding for an idea.

Comparatively few organizations are interested in the valley in between those two stages: healthy, profitable businesses that provide value for their customers and are poised to grow further with additional resourcing and domain expertise.

We live in the gap between cash-flowing software businesses that have outgrown a single founder's bandwidth, but haven't yet cracked the size thresholds that attract traditional institutional capital. This zone is exactly where we believe our capital and operational efforts are most likely to move the needle.

We buy SaaS products or businesses which have:

• At least $15k 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

You'll be particularly interested in our partnership if you're a founder or founding team who:

• Built something awesome but no longer have the time or interest to run it
• Is looking to transition out of direct, day-to-day management
• Wants to find liquidity to fund a larger, more ambitious venture
• Knows your company or product has room to grow, but its needs have outgrown your core competencies and interests

Current Portfolio

• Blue Canary Software, a suite of Zendesk applications 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, the best way to manage calls for artists
• Shopping Cart Apps, a Shopify app for syncing e-commerce tools with advertisers

Story and Team

We are a team of four friends who enjoy the challenge of owning and growing interesting software products.

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, a build-out of basic infrastructure, 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 we are thrilled to report he was excited enough to join us full-time as the fourth Partner.

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

Contact

Email us: [email protected]

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