The SaaS industry is evolving rapidly, and building a successful company today is vastly different from just a few years ago. Companies must navigate challenges with grit, dedication, and resilience. In this episode of the “SaaSiest Podcast,” our very own Johan van Mil, co-founder and managing partner at Peak, shares his journey, insights, and advice for SaaS entrepreneurs looking to grow and secure funding.
A Passion for Entrepreneurship
Johan van Mil’s entrepreneurial journey began during his university days when he started businesses to fund his education. Over the years, he bought, built, and sold 11 companies, ranging from SaaS and payment solutions to a radio station. “I like to build new things. The zero-to-one phase is my sweet spot,” Johan explained. His energy and drive push him to identify opportunities and turn ideas into reality.
His knack for starting and scaling companies naturally led him to founding Peak, a European seed-stage investment fund. Johan’s philosophy is rooted in entrepreneurship, which shapes both the companies Peak invests in and the fund’s structure itself—fully funded by European founders.
What is Peak Capital?
Peak is a specialized investment fund with offices in Amsterdam, Berlin, and Stockholm. The fund focuses on seed-stage investments in SaaS companies and marketplaces. “80% of our investments are in seed-stage businesses,” Johan shared, emphasizing the overlap between SaaS and marketplace models.
Peak is currently deploying its fifth fund, a €125 million fund backed by European entrepreneurs. The team’s entrepreneurial DNA is reflected in their approach to business and their relationships with founders. Their portfolio includes well-known names like Catawiki, Drem, Ocean, and Carbon Cloud.
Defining Pre-Seed vs. Seed Investments
Johan clarified the distinction between pre-seed and seed stages:
- Pre-seed: Founders have an idea, sketches of a product, and are testing the market. Revenue is nonexistent or minimal, and the focus is on validating the need for the product.
- Seed: Companies have a product with early customers who are happy with it. The focus shifts to improving the go-to-market strategy and scaling operations.
Peak typically takes a 10-20% equity stake in the companies they invest in, ensuring founders retain the majority of ownership. “Founders run the company and should hold the majority,” Johan emphasized, contrasting Peak’s philosophy with traditional investor approaches.
Building Strong Founder-Investor Relationships
Finding the right investor is akin to choosing a life partner. Johan stressed the importance of “investor-founder fit.” He advised founders to carefully evaluate potential investors, not just based on brand names or track records, but on shared values and alignment.
“Having the wrong investor on the cap table can derail a company,” Johan cautioned. Founders should treat this relationship with the same seriousness as a marriage. After all, investors and founders are in the same vehicle, and their ability to work together will determine the company’s success.
Peak’s Vision for the Future
Peak is committed to supporting companies in the early stages of their journey. By providing expertise, connections, and funding, the team helps founders navigate the critical early phases of their business.
As Johan reflected on his experiences, he left a piece of advice for entrepreneurs: “Stay focused, surround yourself with the right people, and never underestimate the importance of aligning with investors who truly understand your vision.”
Understanding Peak Capital’s Investment Approach
Johan van Mil, the co-founder of Peak Capital, shares insights into the firm’s unique approach to investing in early-stage startups. Unlike many traditional VCs, Peak Capital focuses heavily on business models rather than industries or specific verticals. This focus allows them to support SaaS companies, marketplaces, and other scalable models without limiting their scope.
Van Mil emphasizes, “We don’t just invest in sectors—we invest in the business models and founders who drive them.” This business-model-centric approach enables the firm to adapt and stay relevant across a range of industries.
SaaS and Marketplaces: The Bread and Butter
While Peak Capital doesn’t exclusively invest in SaaS or marketplace businesses, these models resonate with their team due to their scalability and recurring revenue potential. SaaS, in particular, is attractive because of its predictable growth trajectory when paired with a strong founder and market fit. Similarly, marketplaces create exponential value by connecting buyers and sellers.
“We believe in the fundamentals of these models—they provide consistency and a clear path to scale,” Johan explains. However, the firm is always open to exploring innovative twists on traditional models.
Founder-Focused Investment Philosophy
At its core, Peak Capital’s investment philosophy is centered on the founders themselves. They seek individuals who exhibit resilience, ambition, and a clear understanding of the problem they are solving. Johan notes, “We want founders who are solving a real pain—something that truly resonates with their target customers.”
Peak’s strategy also involves working closely with founders post-investment, offering not just capital but mentorship and operational support. This hands-on involvement ensures a higher likelihood of success for their portfolio companies.
Flexibility Across Verticals
Despite being drawn to certain business models, Peak Capital does not limit itself to specific industries or niches. This flexibility allows them to invest across sectors, from e-commerce to financial technology, as long as the business demonstrates strong fundamentals. Johan reflects, “Our ideal customer profile defines our focus—founders who know the pain they’re solving and are passionate about their solution.”
Building Relationships That Last
Finally, Johan highlights the importance of relationships in venture capital. Peak Capital aims to be a long-term partner for its portfolio companies, guiding them through the ups and downs of scaling a business. This commitment goes beyond funding, fostering a deeper sense of trust and collaboration.
The Importance of Founder-Market Fit
In the competitive world of startups, Johan van Mil, co-founder of Peak Capital, emphasizes the critical role of founder-market fit. Founders with prior experience and deep understanding of their chosen market are better positioned to predict trends and navigate challenges.
“If a founder approaches us to start a company in a market they don’t know or haven’t worked in, it raises concerns,” says Johan. Founders with direct market experience bring credibility and insights that resonate with investors and customers alike.
Building for Long-Term Success, Not Quick Exits
A recurring debate in the startup ecosystem revolves around founders building companies with the primary goal of a quick exit. Johan addresses this head-on: “It’s great to have bold ambitions, but setting a timeline for an exit within three years is often unrealistic.”
Peak Capital prefers to back founders who combine ambition with pragmatism. Companies that aim for tangible growth over eight to ten years are more likely to succeed. Johan adds, “The most successful startups often pivot multiple times, so flexibility is key. While the end goal remains firm, the path to achieving it requires adaptability.”
Fundraising as a Strategic and Structured Process
Fundraising is one of the most time-consuming aspects of building a startup, especially for leadership teams. Johan suggests that a structured approach is essential: “Treat fundraising like a sales funnel—set realistic goals, track key metrics, and align expectations with investors.”
He stresses the importance of having a realistic valuation and clear timelines. Many startups face challenges when high valuations from previous rounds don’t match their actual growth. To avoid this, Johan advises founders to approach funding rounds with detailed planning and clear milestones.
Quarterly Updates: A Smart Relationship-Building Tool
One of the standout strategies discussed was maintaining regular communication with potential investors. Johan supports the idea of quarterly updates, especially for later-stage companies preparing for future funding rounds.
“Sending detailed updates every quarter builds trust and keeps investors engaged. They see consistency and progress, which makes future funding discussions easier,” Johan explains. For earlier-stage startups, he recommends a more flexible approach but still encourages ongoing relationship-building with investors.
Stress-Testing Founders and Teams
Investing in early-stage startups often boils down to evaluating the team. According to Johan, “At the seed stage, we’re investing in people, not products. Founders need to demonstrate flexibility and the ability to adapt to constant change.”
Peak Capital applies a rigorous process to assess whether founders have the skills, resilience, and complementary team dynamics to navigate the turbulent world of startups. “The people you surround yourself with must be capable of surviving and thriving through challenges,” Johan adds.
Leveraging Founder Experience for Seed-Stage Success
Johan believes Peak Capital’s founder-centric background gives them an edge in supporting early-stage companies. With a team that includes experienced founders, Peak Capital provides practical advice and mentorship beyond financial investment.
“We understand what it takes to grow from seed to Series A and beyond. That perspective is invaluable for the startups we work with,” Johan notes.
Takeaways for Founders and Investors
As the discussion wraps up, the key takeaway is clear: successful startups are built on a foundation of strong teams, realistic goals, and solid relationships with investors. Whether it’s stress-testing early teams, managing funding rounds strategically, or balancing ambition with pragmatism, Johan’s insights highlight what it takes to thrive in today’s competitive startup landscape.
For founders looking to scale, Johan and Peak Capital serve as not just investors but true partners in the journey.
Want To Learn More About Scaling Your Company?
Would you like to learn more about scaling your company? Check out the Big Exit Podcast to learn from others!