The What: A Self-Sustaining ‘Micro PE’ Fund
In the first year of building and operating Waterglass, a micro PE fund that aims to build a portfolio of cash-flow optimized software businesses, the goal is about setting the fund’s groundwork by acquiring the initial assets.
AI and automation have opened a new chapter for software development and business operation. I strongly believe this will allow the creation and operational management of more cost-efficient businesses with less human resources involved.
While AI alone will not build better businesses by itself (yet), I am convinced that its creative use by domain experts will significantly increase output and efficiency.
Focused Re/Investments
In targeting investments, I’m particularly looking into ventures catering to niche B2B markets for mid-sized enterprises with the aim to strategically build synergies between all ventures across the Waterglass portfolio.
Looking ahead to 2024, our ambition is to build and acquire three ventures that align with this philosophy.
A crucial aspect of this approach at Waterglass is financial reinvestment. Most of the generated cash-flow will be reinvested back into the fund. This strategy is designed to create a self-sustaining cycle that nurtures and grows the portfolio organically along with the Waterglass team throughout this year.
The Why: Rethinking Startup Success
One of the main reasons why I’m building Waterglass is to challenge the conventional startup narrative. It’s a narrative that often glorifies rapid, investor-fueled growth at the expense of sustainability and long-term value creation.
This overlooks the fact that the vast majority of businesses in the market – be it software or non-software businesses – are self-funded and optimized for cash-flow, especially as only few markets are winner-takes-it-all markets.
A Vision for the Future
Ultimately, the vision for Waterglass is to create an ecosystem of self-sustaining ventures, each thriving on its own yet benefiting from being part of a larger, synergistic portfolio.
This vision guides every decision and investment, ensuring that Waterglass remains flexible, resilient, and set up for long-term success.
Follow the Story
To tell this story better, I decided to bring more transparency to this process. In the News section of Waterglass, exactly where you are reading this announcement right now, I plan to publish updates about the fund’s overall performance.
However, on LinkedIn, Twitter (X) and especially on bernhard.hauser.io, I will provide behind-the-scenes insights into the operational and decision-making processes on a more frequent basis.
I encourage you to subscribe via email and follow me to not miss any updates: