38 - 493.5% ROI - Exiting Sheet.Best XO Capital's Fund Stuff

In this week's episode of "Fund Stuff," Andrew from XO Capital shares insights on successfully exiting Sheet.best with nearly a 500% return on investment. Highlighting the strategic shift towards focusing on fewer, larger deals for better management and efficiency, Andrew delves into the challenges and learnings from managing a broad portfolio of companies. The episode also touches on XO Capital's community engagement efforts, including a new initiative to help a small group buy their first SaaS company, reflecting on the potential for more structured support in the future.
The narrative then shifts back to the journey with Sheet.best, acquired in 2021 as XO Capital's second deal. Starting with a modest $800 MRR, strategic use of Google ads and unexpected influencer marketing led to significant growth. Andrew candidly shares the operational ease of managing Sheet.best, emphasizing its low support needs and fascinating use cases due to its horizontal product nature.
Financially, the exit from Sheet.best marks a significant achievement for XO Capital, with a 493.5% ROI and an impressive IRR, underscoring the company's ability to source, grow, and exit successfully. This move aligns with XO Capital's strategy to reallocate resources towards larger, potentially distressed ventures, aiming for impactful investments.
Andrew concludes by inviting listeners to join the XO Capital Discord community for further discussion and hints at the exciting journey ahead for the new owners of Sheet.best. This episode not only celebrates a milestone exit but also sets the stage for XO Capital's refined focus on value creation and community support in the SaaS space.