Founderpath acquires Boopos in multimillion-dollar deal, opening opportunities for SaaS growth

Juan Ignacio Garcia Braschi recognized the need for Boopos to expand its operations. The lending platform, focusing on financing e-commerce and SaaS businesses, had demonstrated its effectiveness but encountered the typical hurdle of scaling without adequate capital reserves.

“Scaling without access to larger pools of funding was a significant challenge for us,” shared Boopos founder and CEO Garcia Braschi. “Our current VCs had limited resources, making it tough to attract new investors to a lending business.”

To address this issue, Garcia Braschi made a strategic decision last summer. He focused on reducing expenses, ensuring profitability, and positioning the company for acquisition. This strategic shift eventually led him to Founderpath, a lending platform known for supporting SaaS companies. Noteworthy was the fact that Founderpath operated on a remote-first model with its headquarters in Austin. The acquisition process progressed swiftly, taking approximately a month and a half to finalize following the initiation of discussions earlier in the year.

For Founderpath CEO Nathan Latka, the decision to acquire Boopos was a logical one. Drawing from his entrepreneurial background and past experiences of raising excessive equity, Latka established Founderpath to provide non-dilutive funding solutions to founders aiming to scale their businesses without sacrificing ownership.

Latka stressed Founderpath’s unique approach compared to other players in the industry. “We have maintained patience at Founderpath while others have prioritized rapid growth at all costs, resulting in challenges such as reduced lending capabilities or weak financial positions. With a strong balance sheet and an experienced team of ten, we have channeled nearly $200 million into approximately 550 software companies,” he explained.

Boopos’ specialization in SaaS M&A financing made it an attractive prospect for acquisition. Garcia Braschi highlighted the platform’s distinctiveness compared to competitors like Pipes and CapChase, pointing out that these entities lacked either the requisite expertise or financial strength to execute such transactions effectively.

While the specific details of the eight-figure acquisition were not disclosed by Founderpath, the deal is set to close this month. Boopos will maintain its commitment to existing clients while directing new business to Founderpath’s platform. In addition, Garcia Braschi and three key team members will facilitate a smooth transition during the integration phase, after which they will focus on a new venture, L40, a boutique M&A advisory firm specializing in SaaS transactions in the U.S. and Europe.

Latka envisions Boopos as a crucial component of Founderpath’s future strategy. As advancements in AI technology lead to increased software startup activity and M&A transactions in the market, Founderpath aims to position itself as a primary funding source for these transactions over the next decade.

The impending completion of the acquisition process by mid-month awaits final board approval. Both companies are committed to ensuring a seamless transition and maximizing opportunities in the evolving SaaS M&A landscape.