In this episode of Nothing Ventured, host Aarish Shah welcomes Alex Theuma, founder and CEO of SaaStock, and Kenneth Thomas, Principal at BackFuture Ventures. They delve into the importance of building a strong network over a decade to successfully launch a venture capital firm like BackFuture. The conversation touches on the qualitative aspects of venture capital, emphasizing the significance of interpersonal relationships and honest communication. The trio also explores the challenges of raising a fund amid the recent SVB collapse and discusses the current state of the SaaS industry. Alex and Ken reveal how they are evolving the BackFuture brand while maintaining its unique selling proposition. Tune in for insights on navigating the dynamic world of B2B SaaS investment and innovation. Timestamps: 00:00:00 - Introduction to Guests and Podcast Overview 00:00:55 - Importance of Building a Network for VC Firms 00:01:24 - Decoupling SaaStock and BackFuture Ventures 00:02:09 - Evolution from SaaStock to BackFuture Ventures 00:02:45 - Transitioning from Community Builder to Investor 00:03:06 - Timing and Network in Launching a VC Firm 00:03:49 - Learning by Doing and Providing Capital 00:05:14 - Conviction in Early-Stage Investments 00:06:30 - Art of Picking Investments and Network Leverage 00:09:16 - Ken Thomas on Community-Driven VC Models 00:10:34 - Channels and Process for Deal Flow 00:11:32 - Portfolio and Promotion 00:13:11 - Community as a Distribution Channel and Testing Ground 00:14:37 - Challenges of Raising a Fund During Market Downturn 00:15:05 - Initial Fundraising Experience and Market Impact 00:16:07 - Difficulties in Raising from LPs 00:17:59 - Continued Challenges in Fundraising 00:18:20 - Evolution of BackFuture Ventures' Thesis 00:19:22 - Decoupling SaaStock and BackFuture Ventures Brands 00:20:25 - Is SaaS Dead? The Impact of AI and No-Code Tools 00:21:24 - AI as a Technology and SaaS as a Business Model 00:22:18 - Evolution and Future of SaaS 00:23:52 - AI-Powered SaaS and Legacy SaaS Companies 00:25:03 - Differentiating AI Companies from SaaS Companies 00:26:00 - Founders' Perspective on AI and SaaS 00:27:22 - Enterprise Sales and SaaS Stickiness 00:28:25 - Market Focus: Enterprise vs. SMEs 00:29:49 - Capital Efficiency and Non-Dilutive Funding in SaaS 00:30:47 - Shift Towards Bootstrap Companies 00:32:07 - Competition Among VCs and Fewer VC-Backed Companies 00:32:36 - Impact of COVID on SaaStock and Human Connection 00:34:15 - Transition to Virtual Events During COVID 00:35:55 - Success and Fatigue of Virtual Events 00:37:54 - Importance of Face-to-Face Interaction 00:38:51 - Ken Thomas' Introduction to SaaStock 00:39:46 - Virtual vs. In-Person Events Post-COVID 00:41:09 - Value of In-Person Events and Meaningful Conversations 00:42:34 - Contrarian Convictions and Risk Appetite 00:43:34 - Human Interaction and Emotional Connection Find Alex Theuma online at: LinkedIn: https://www.linkedin.com/in/alextheuma/ / Twitter: https://x.com/alextheuma / SaaStock: https://saastock.com Find Kenneth Thomas online at: LinkedIn: https://www.linkedin.com/in/kennethkashifthomas/ Backfuture VC: https://backfuture.vc This episode is sponsored by EmergeOne, fractional CFOs for venture backed tech startups from Seed to Series B. Get in touch at https://emergeone.co.uk/-us/ or the CFO team at https://emergeone.co.uk/-the-cfo-team/ Sign up for EmergeOne’s weekly newsletter, Off Balance at https://off-balance.beehiiv.com/subscribe 1g451j