Tim Schumacher

And well, it usually works that there's an administrator.

In the US, it's Chapter 11.

In Germany, France, other European countries have similar things.

uh similar types uh and then there's an administrator and that person is charged uh for for selling selling off the assets and then you just negotiate it with that person not with the founder it's obviously a very different style a lot more formalities um but it's uh it's great because you know you preserve a company preserve your team uh it has its own challenges but it's um it's a worthwhile exercise and in both cases it worked really well we have

In one case, the founders are still operating it across the law.

In the other case, we found a new management.

And in both cases, the companies are super strong now.

They're profitable.

They're growing again.

And they're building on the product.

And they just were mismanaged before and they were overspending.

Yeah, we're not sophisticated yet when it comes to monitoring bankruptcies.

Also, we have to admit bankruptcies are pretty rare in SaaS because if you manage the SaaS well, it's almost impossible to get it into bankruptcy.

It usually only happens if there's a VC pouring too much money, founders go crazy,

The environment tanks, that's exactly what happened in those two cases.

And yeah, the founder said that he couldn't secure the funding, but also the fact is he just spent a little too much.

And so that is essentially what then happens.

But other than that, it's very rare to see SaaS companies go bankrupt.

Different to e-commerce companies, for example.

It's much easier to get an e-commerce company bankrupt than a SaaS company.