SaaS Capital Blog

Dec
06
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.
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Nov
01
Raising capital can be a challenging, sometimes grueling, process. In the last 20+ years, I have seen how the sausage is made from many different perspectives. Prior to starting SaaS Capital in 2007, I was a partner at a venture capital firm with a focus on funding Series A and B for software companies. It was there that I saw the specific challenges early stage businesses face. 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.
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Sep
14
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. It is the unit economic driver of value and profits that is obscured by normal GAAP financials.
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Sep
10
While predicting the start of the next recession is impossible, we know there will eventually be one. 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.
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Jun
13
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.
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Apr
30
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.
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Mar
01
Ok, well, “magical” might be a little strong, but there are circumstances where this structure does have specific benefits that are very valuable. In the short post below, we describe how to quantify those benefits to your stakeholders.
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Aug
10
In a recent article in Forbes, Max Williams, the CEO of Pusher Ltd, is interviewed about the pros and cons of raising venture capital from an entrepreneur’s perspective. For most of our portfolio companies, raising a VC round is a viable option, and in the full article here, the author and Max do a pretty good job discussing the merits.
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Aug
02
Insurance may seem like a pretty boring topic compared with, say What is my SaaS Valuation? but as you may remember from school, it’s a negatively correlated asset – when everything else goes against you, it pays out. So, it’s an important part of life and business, and your needs can change over time as you grow, pivot product and target market, or raise capital, so it’s good to keep in mind and revisit now and again.
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Feb
24
Two weeks ago, Todd Gardner and I attended the SaaStr Annual conference in San Francisco. This is the SaaS-business-model-specific conference put on by serial SaaS entrepreneur and VC Jason Lemkin. This was the third year of the event and we’ve gone every year. Below are our takeaways from it...
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Jun
30
We recently published our second research brief of 2016. This study, on how different contracting lengths impact SaaS operating metrics such as revenue growth and churn, is based on data from over 400 SaaS companies whom we surveyed at the beginning of the year.
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Jun
28
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is useful in valuing a company but it certainly does not equal “cash flow.” EBITDA was invented as a way to value companies on an ‘apples-to-applies’ basis; it eliminates the impact of balance sheet choices and different tax rates. That is all fine and good, but...
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Jun
10
Jessica Mah, co-founder and CEO of SaaS Capital portfolio company inDinero, was invited to present at this year’s SaaStr Annual conference in February on her experience scaling her company from 20 employees to over 200 in just 24 months.
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Jun
02
While the Customer Acquisition Cost (CAC) Ratio has been around for years, and many best practices have been published around this critical SaaS metric, in recent conversations with SaaS-company CEOs about benchmarking, we found a lot of companies still aren’t tracking it.
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May
25
Last October, SaaS Capital hosted its first-ever get together of portfolio company CEOs. The response was so positive we decided to hold a spring summit to continue the momentum...
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May
16
Pulse is the annual Customer Success event hosted by Gainsight. It’s both a users conference and an industry event, and I think it does a good job achieving both goals. It definitely goes on our “recommended list” and you do not need to be a Gainsight customer or prospect to get value.
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Among the financing alternatives we considered, SaaS Capital offered us the exact kind of financing that we needed – along with a supportive and knowledgeable partnership.

Terry Dwyer

CEO, WebLink

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