What’s behind The Big Three? As a growth equity firm, we aspire to invest in the high point of excellence. We look for category leaders at the confluence and collision of ideas and domains.
We are proud to invest in Kajabi, a content and ecommerce engine that makes it easy for knowledge-based entrepreneurs to launch their business. A powerful tool for experts across industries, Kajabi has grown exponentially since its founding in 2010. That growth switched into high gear with the pandemic-bolstered demand for online services and the SaaS platform’s meteoric rise shows no signs of slowing down.
Here are the top three reasons we believe in Kajabi:
#1 Secular Tailwinds
Consumers are consuming more and more instruction and teaching online. Entrepreneurs are complementing or pivoting their mainstreet businesses to digital. Shelter in place was step-function tsunami tailwind to both.
Kajabi sits at the confluence of these two trends as an easy digital solution to help teachers, instructors and coaches to bring their expertise and services online. The concept was initially conceived of in the California backyard of founder/ creator Kenny Rueter. Reuter spent his spare time making a PVC sprinkler toy for his young sons. The contraption was not only a success in Reuter’s family, but soon extended far beyond the neighborhood. Reuters realized the value of sharing how he built his creation, but found that there wasn’t an easy way to bring his idea to market. Reuter started Kajabi to solve that need.
#2 Category Leadership
With Kajabi, plug and play really means plug and get paid. Kajabi’s effortless user experience and powerful functionality make it easier than ever to bring invaluable insight right to the eyes, hands, and minds of potential customers. Not only does Kajabi offer the best product, they also have the most vibrant community of user/ coaches. It’s no wonder they are the largest player in the industry.
#3 Superlative Fundamentals
As a product-led company, bolstered by robust tailwinds, Kajabi is one of the most compelling combinations of growth and profitability metrics we have seen. Its numbers stand alone, but the real magic is in its additive value for society. Kajabi’s success begets its users’ success. The nearly 50 million customers it serves have leveraged the platform to generate $1.5B in GMV annually*, a significant injection of both funds and ideas into the economy. Kajabi is a massive business with equally massive potential—it is a critical and foundational service in a hypergrowth sector with no ceiling in sight.
At Tidemark, we are thrilled to help power Kajabi’s incredible momentum. Fellow Scott Wagner has joined the board of directors and Venture Partner Tim Barash is an advisor to the company. We’re all in!
*Source: Kajabi press release, Kajabi Raises $550 Million and Garners Valuation Over $2Billion with Growth Financing Led by Tiger Global (May 4, 2021)