Portfolio Triage: How to Handle Existing SaaS Investments

For investors with existing portfolio companies, the bifurcation demands honest assessment and decisive action. Here’s the framework for triaging your portfolio.

Already Floor ✓

Situation: Viral mechanics working, zero-CAC growth, AI-native architecture.

Action: Double down, accelerate, help find adjacent monetization.

Expected outcome: Continue supporting — high upside, binary risk.

Already Ceiling ✓

Situation: NRR > 120%, deep integrations, services revenue, multi-year contracts.

Action: Deepen moat, add services, fund enterprise expansion.

Expected outcome: Best risk/return — protect and grow.

Middle: Can Migrate Up ⚠️

Situation: Has moat potential (integration depth possible, data gravity exists).

Action: Fund ceiling migration with 12-18 month runway, clear milestones.

Expected outcome: Bridge round or write down — 50% success probability.

Middle: Stuck ☠️

Situation: No structural path to Floor or Ceiling.

Action: Sell now or wind down — stop burning capital.

Expected outcome: Minimize loss, move on — don’t throw good capital after bad.

Migration Support Playbook

For companies with potential to migrate up:

• Add professional services — Hire implementation team, create onboarding packages
• Deepen integrations — Fund engineering to build 10+ enterprise integrations
• Shift to enterprise sales — Replace SMB motion with enterprise playbook

This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.