SaaS Capital Blog

SaaS Benchmarking Data – Growth Rates

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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.

How Do SaaS Companies Perform in a Recession?

To enhance our understanding of the SaaS business model and better prepare ourselves and our portfolio companies for an eventual economic downturn, we wanted to learn how software-as-a-service companies performed through the previous recession.

2018 Growth Benchmarks for Private SaaS Companies

Revenue growth is the most important metric for valuing a SaaS company, yet it’s hard to find good benchmarking data for a relevant peer group. Comparisons to multi-billion-dollar public companies are not helpful, and neither are the anecdotal data points from angel investors or VCs. To provide some better context on this question, we surveyed over 900 private SaaS companies regarding their 2017 revenue growth.

Event Recap: Kinetic Indiana Conference

A couple weeks ago Todd and I had the pleasure of attending the inaugural Kinetic Indiana conference, put on by venture capital firm Elevate Ventures. The conference served as a great reminder that entrepreneurship is prevalent across the entire country including the Midwest.

3 Reasons for the Increase in SaaS Equity Investment

In just the last few weeks, we have seen Marketing Evolution raise $20.6 million in Series B funding, Uberflip raise $32 million in Series A funding, and Pusher raise $8 million in Series A funding. These deals are just part of a larger trend of SaaS Capital portfolio companies either raising equity or being acquired.

The Magical Funding Properties of an MRR Credit Facility for SaaS

To properly assess different financing options, management needs to estimate two things: the number of months of runway each debt option provides, and how much equity value the company creates each month.