Definition
Service as software
A model where a service offering is delivered through software automation. Hatter delivers SEO as a service but automates the execution layer with AI on the backend.
From the episode “Tiny Brands Are Outranking Billion-Dollar Companies. Here Is the Hack.”Hear it on the podcast1 episode
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Related terms in Startups & Fundraising
Secondary Market (Private Equity)A market where existing shareholders in private companies can sell their shares to buyers outside of a primary financing round, providing liquidity before a company's IPO or acquisition. Unlike primary markets (where a company sells new shares to investors in a funding round), secondary transactions involve existing shareholders - founders, employees, early investors - selling previously issued shares to new buyers. Greg Brogger built the first modern private secondary marketplace (SharesPost in 2009), which merged with Equate to create Forge. The private secondary market currently processes approximately $150 billion in annual volume against a $4 trillion private company asset base - roughly 3-4% annual turnover, compared to 100% for comparable public market indices. Major financial institutions are entering the space (Morgan Stanley acquired EquityZen in 2024), and 401k rule changes opening access to private equity are expected to significantly expand the market.Seed RoundThe next funding stage after pre-seed, typically raised once a company has conviction in product, some paying customers, and a validated go-to-market strategy.Seed strappingRaising a small amount of capital and running lean like a bootstrapped company, made easier by AI-reduced build costs.Series AAn institutional funding round, typically after seed, to scale a validated product. Softr raised a $13.5M Series A from FirstMark, then stopped raising and went profitable rather than chasing further growth capital.Software + Services (Productized)A business model pairing a low-cost, sticky software entry point with higher-margin professional services upsold after trust is established. The software generates baseline recurring revenue and handles the core operations; the services are optional and can be turned on and off. The model lowers acquisition friction (buyers commit at low price), reduces structural churn risk (software is harder to cancel than services), and creates a natural upsell sequence to high-value customers who have already validated that they'll pay.Software + Services ModelA business model that combines a software platform with human-led services delivery — consulting, coaching, events, content — to ensure adoption actually happens rather than just licensing. Section uses this model because enterprise AI adoption requires behavioral change, not just tooling access. The services layer is what moves organizations from 10% to 30–50% AI adoption.Solo GPA venture investor running a fund alone, part of Tim's current raise strategy.Sourcing ModelThe traditional growth equity approach of hiring teams of analysts to proactively cold-outreach to founders who haven't raised yet.