This Startup Raised $35M from a Cold Email to a VC

Presented by GOTO Market Institute

Hey SaaS Sentinel reader. Welcome back. This week, we’re looking at how a salon startup raised a $35M round from a cold email, why big startups are getting banned and fined in certain states, and Salesforce’s most recent $1.9B acquisition.

• Startups like Carta and Pulley are facing legal disputes due to compliance issues

• Salon software startup, Mangomint, raises a $35M series B that started with a cold email

• Salesforce acquires data management firm, Own, for $1.9B in Cash

Why Startups Are Getting Banned and Fined by Individual States

When Carta’s business license was revoked in Illinois last year for failing to pay franchise tax, it highlighted a common pitfall for startups—navigating complex state compliance rules. But Carta wasn’t alone. Washington state terminated Pulley’s license for similar reasons.

This exposes a tricky web of regulations that many early-stage companies stumble over. Each state has its own fees, taxes, and registration requirements that founders often overlook while focusing on customers and fundraising.

But ignoring state rules can lead to fines, revoked licenses, and even lawsuits down the line. And the state of Illinois only accepts paper filings and check payments, which adds extra hurdles for companies dreaming of getting acquired. Andrea Schulz, a lawyer at Grant Thorton, says that, based on her experience, no startup getting advisory services has had state compliance fully squared away.

The consequences typically include back taxes and fixes to get reinstated. But these issues could also push away potential acquirers during due diligence or leave startups exposed to legal disputes if their protections lapse.

“These entrepreneurs don't plan. They just kick the ball and then run after it,” said Bruno Drummond of Drummond Advisors. “Every time they kick the ball, there is some kind of compliance to fulfill so as not to get penalties.”

Ultimately, ignoring this red tape isn’t sustainable as startups scale, and building out a compliance budget could save founders from unnecessary legal disputes before they plan to exit.

Read more.

Want to Increase Your Marketing Team’s Revenue Impact?

GOTO Market Institute’s founders built tech companies worth over $8 billion, and they’re finally spilling their secrets. With over 10 masterclasses, 50 implementation tools, and a real-world approach, you can elevate your team, outperform competitors, and maximize revenue growth.

Ready to turn your marketing investment into a revenue driver for your business? Check out a sample GOTO’s masterclasses and strategic tools: 

Our newsletter subscribers also get an exclusive 10% discount! Use code SENTINEL

How a Cold Email to a VC Helped This Startup Raise $35M

Cold emails are nothing new in fundraising. But for Daniel Lang, an introductory note to prominent VC Jason Lemkin helped pave the way for his startup’s recent $35 million Series B round.

Lemkin made a small initial investment in Mangomint after that first outreach years ago. Now his SaaStr Fund is back, joining Altos Ventures to co-lead support for Lang’s salon and spa software startup.

It’s been a standout stretch for Mangomint, which has doubled annual recurring revenue and customer growth for years as it simplifies operations for spas and salons. Powering over $1 billion in transaction volume to date, Lang sees no slowdown ahead.

The new capital will pour fuel on the fire, funding the startup’s hiring sprees across engineering, sales, and support to quicken the pace of development. Mangomint also just launched new automated SMS, notification, and reminder features to engage clients.

“We believe we can innovate with entirely new marketing tools for salons that help them generate more profits,” Lang told TechCrunch.

Mangomint’s momentum illustrates that while software funding may be cooling on the whole, some standouts can still strike fundraising gold—savvy networking skills and solid product-market fit don’t hurt either.

SaaStr’s Lemkin said it best—as long as founders send standout cold emails, VCs will answer. Mangomint’s decade-long runway shows it’s advice worth heeding.

Read more.

Salesforce Acquires Data Management Firm for $1.9B in Cash

Salesforce is getting back into the multi-billion dollar acquisition game with its $1.9 billion purchase of data management firm Own.

It's Salesforce's biggest deal since the $27.7 billion Slack acquisition that closed in 2021. Own provides data backup, security, and compliance capabilities for enterprises—particularly those relying heavily on Salesforce and other SaaS apps.

The deal gives Salesforce robust new data management tooling amidst growing ransomware threats and new regulations around data governance. With nearly 7,000 customers already, Own is a proven play rather than a speculative bet. Salesforce GM Steve Fisher also emphasized that the deal underscores Salesforce's commitment to data security and protection. “It's a commitment that comes at a price—but one some activist investors are likely to forgive,” said Fisher.

Own CEO Sam Gutmann touted the combination with Salesforce, enabling "a more comprehensive data protection and loss prevention set of products." As much as the deal bolsters Salesforce's offerings, it provides a far bigger funnel for Own's data services to reach customers globally.

The deal is expected to close by the end of Salesforce's next fiscal year. Add it to smaller recent deals for PredictSpring and Tenyx as signs Salesforce is getting its mojo back on the M&A front. With data management and compliance urgent focuses for enterprises, we wouldn’t be surprised if more consolidation deals follow Own as deep-pocketed players reinforce their toolsets.

Read more.

Parting Thoughts

Well, that’s the tech news for this week. Hit reply and let us know—did you learn something from today’s newsletter?

Until next time!