Ep. 95: Ed Byrne, Scaleworks | Scaling SaaS with Sustainable Growth through Venture Equity

Private Equity Value Creation Podcast

On this episode Shiv Narayanan interviews Ed Byrne, co-founder of Scaleworks, a venture equity firm based in San Antonio.

Ed shares his background as a software entrepreneur and the lessons learned from his experiences that led to founding Scaleworks ten years ago with partner Lou Moorman. The discussion explores the concept of "venture equity" as a hybrid model between traditional VC and private equity, emphasizing sustainable growth over high-risk VC funding. Key topics include the downsides of VC (such as portfolio theory encouraging all-or-nothing scaling), the benefits of bootstrapping or using debt for most software businesses, avoiding premature scaling, prioritizing customer-funded growth, and Scaleworks' approach to acquiring and accelerating 5-10M revenue SaaS companies by building go-to-market teams in-house, bringing in new CEOs, and focusing on levers like pricing, category specialization, and dispassionate product decisions. Ed also covers deal structures, value creation through centralization in San Antonio, resistance to playbooks, and aiming for acquisitions driven by inbound interest rather than fixed timelines.