Clement — Excellent post here. I also loved the predecessor, “The Rise of Non-VC compatible SaaS Companies”, when you wrote it. I adamantly agree that new financing models are rising quickly that address these exact changes in company formation, especially in SaaS. (For transparency, I am CEO of Lighter Capital, which specializes in debt financing for early stage startups that are often “pre-VC”, so I have a strong bias!)
In addition, I believe a virtuous cycle has started here between company formation and financing options; with additional non-equity financing options, more companies can thrive without having to be VC-compatible. And if these companies can grow to any reasonable size (maybe $5M+ in ARR) without raising VC, the entrepreneurs can have small exits (by VC standards) that are huge exits for the founders’ personal wealth. Life changing.
But not a fit for VC.
We see these small-but-beautiful exits a lot.