How This Early-Stage Growth Equity Partner Is Investing in SaaS in 2026

Steve Wolfe, Co-Founder and Managing Director of Growth Street Partners, returns to the Practical Founders Podcast to discuss how practical SaaS founders can navigate the AI shift without getting distracted by the hype. Steve explains Growth Street’s minority growth-equity approach, what they look for in founders and markets, and how their portfolio companies are adapting to a rapidly changing software landscape. Key Takeaways Go High — Drive above the wreck instead of through it, and return to first principles. Minority Stakes — $5-15 million buys 20-50 percent, so founders keep control and keep deciding. Headline Half-Life — Reading AI news daily burns time on knowledge that expires in weeks. Right to Win — Add AI where you already have an edge, not everywhere you see a nail. Exit Discipline — Growth Street models five times revenue at exit, same as day one. ⏱️ Chapters: 0:00 – Intro and Welcome 2:23 – Steve Wolfe Returns 5:42 – What Founders Need 7:03 – Growth Street’s Strategy 9:05 – Minority Equity vs Control 12:09 – The Right Founder Partnership 15:19 – Finding the Growth Inflection 18:44 – Why Practical Beats Venture 23:03 – Navigating the AI Shift 28:46 – AI Through Customer Value 31:29 – Changing How Software Gets Built 33:44 – Incremental AI, Bigger Leverage 40:07 – Founder Demand in Uncertainty 42:52 – Getting AI Wind Behind You 46:03 – Why AI-First Businesses Struggle 48:16 – The Case for Payments 52:31 – Building for Future Exits 55:30 – Planning the Exit Early 59:50 – Alignment Before Investment 1:02:14 – Founder-Market Fit 🔗 Links Steve Wolfe on LinkedIn:   / stephen-wolfe-ba5a596   Growth Street Partners on LinkedIn:   / growth-street-partners   Growth Street Partners website: https://growthstreetpartners.com/ Steve's earlier Practical Founders episode (#123, with Nate): https://practicalfounders.com/podcast... About Practical Founders and Greg Head Practical Founders build valuable software companies without big VC funding. This growing community of practical founders are winning the startup game with successful exits of $20 million to $100 million for founders, if they ever choose to sell. There has never been a better time to be a practical founder. Greg Head is the founder in chief of Practical Founders. He is a 30-year software industry veteran who was part of the startup-to-scale journeys of three different CRM software companies, including one IPO. He is now an active advisor, community builder, and speaker who helps founders of SaaS software startups worldwide. Greg is a paid strategic advisor to 40 early-stage SaaS company CEOs with his Practical Founders Peer Groups and his 1-1 CEO advisory programs. He hosts the weekly Practical Founders Podcast where he interviews successful founders who grew valuable software companies without big funding. Connect with Greg and Practical Founders: Greg Head on LinkedIn   / gregheadaz   Subscribe to Practical Founders on YouTube:    / @practicalfounders   Practical Founders Podcast https://practicalfounders.com/podcast Practical Founders Peer Groups https://practicalfounders.com/peer-gr... Greg’s blog https://practicalfounders.com/articles Get the Practical Founders weekly newsletter https://practicalfounders.com/newsletter