SaaS Capital Blog
Retention Benchmarks and Analysis for Channel Sales in SaaS
For the last two years, we have devoted several questions in our annual SaaS metrics survey to the area of channel sales. In our recently released research brief on revenue retention, we analyzed the channel sales data in relation to churn.
SaaS Industry 2019 Observations and Thoughts for 2020
Below are some thoughts on the SaaS industry this past year, our perspective on the market going forward, and a short recap of our previous year and decade.
Capitalizing Software Development Costs in a SaaS Business
GAAP is the standard, and if your numbers are not based on GAAP, then they do not actually conform to a standard at all. That said, when it comes to the capitalization of software development costs, GAAP has it dead wrong.
Private SaaS Company Valuations: 2019
Long-time readers of our work may recall we have strived to shed a light on the opaque, confusing and, volatile practice of valuing private SaaS companies. As we near the mid-point of 2019, we thought it would be good to check on current private company valuation multiples.
Is anyone adopting ASC 606?
The adoption of new accounting rules is not a topic we normally bring up in conversations with SaaS companies, but the ASC 606 change has created enough confusion (and work) that we have found ourselves talking about it more than we’d like.
SaaS Benchmarks from Our 2018 Survey
Each year SaaS Capital conducts the largest survey of its kind to gauge the overall performance of private B2B SaaS companies. Here are the results from the survey we conducted in 2018 which covered more than 900 SaaS companies.
Should Your SaaS Company Have a Channel Sales Strategy?
Over the last year or two many of SaaS Capital’s portfolio companies have initiated channel sales strategies, and many more are contemplating it. Given the trend, this was the focus topic at a recent portfolio company CEO roundtable.
Why It’s a Bad Idea to Ask for a Bridge Loan
In a way, all financings are bridge financings to some future event. However, the specific request for a short-term bridge loan carries with it unique challenges. I honestly believe many of these companies think bridge financings are a standard part of the funding landscape but, in reality, they are not.
Preparing a SaaS Company for a Capital Raise
Since creating SaaS Capital to focus exclusively on B2B SaaS businesses, I've now had the opportunity to speak with thousands of SaaS founders and company executives and see the specific challenges SaaS businesses face when raising money.
A Warning About SaaS Lifetime Value Calculations
When I first heard about the Lifetime Value (LTV) to Customer Acquisition Cost (CAC) metric many years ago, the economics major in me got very excited. I was already well into the software-as-a-service (SaaS) financing business at the time, and this ratio seemed like the most elegant way to express how the business model really worked.