SaaS Capital Blog

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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Nov
01
After reading our recent white paper What is My SaaS Company Worth? one of our portfolio company CEOs reached out asking about the premium a SaaS business would garner in a strategic sale vs. a re-cap or equity raise. It struck us that this may be a topic other companies might have questions about so we have addressed it here.
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Oct
11
I had an entrepreneur ask me a few weeks ago - “What are SaaS companies ‘going for’ these days?” I said, well, it depends on a number of factors, but 5 times annual run-rate revenue is average.
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Sep
02
Stock warrants are a common component of venture debt, and while typically small in relation to the other overarching economics, they are important because they have to do with the cap table, which we all know is a zero sum game. They also can be confusing because they have a unique lexicon, and what information is on the web about warrants focuses more on the legal and tax ramifications rather than the practical.
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Jul
18
SaaS Capital has had nine of its companies “price” their equity in the last 24 months through either a sale of the business or a substantial equity raise. Here's a look at the valuations.
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Apr
28
New data from SaaS Capital's fifth annual SaaS benchmarking survey shows the relationship between retention rate and a company's ability to grow top-line revenue.
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Mar
24
Gross Churn/Retention is a measurement of annual revenue lost from a SaaS company’s installed base of customers, not accounting for cross-sells, up-sells, price increases, or organic account growth.
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Nov
12
SaaS Capital explores the key SaaS metrics: net revenue retention, gross revenue retention, customer count retention, monthly churn, and cohort analysis
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Oct
06
SaaS Capital explores the optimal sales and marketing spends for SaaS companies
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Sep
18
In this final post in our series about company valuation drivers, we take a deeper look at Customer Acquisition Costs as a factor in company valuation.
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Sep
03
The fourth in our series of five blog posts take a look at Gross Margins and its impact on the valuation of your SaaS Business.
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Aug
12
The third in our series of five blog posts take a look at Customer Retention and its impact on the valuation of your SaaS Business.
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Jul
22
The second in our series of five blog posts takes a look at Addressable Market Size as it relates to the valuation of your SaaS Business.
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Jul
15
Based on our review of the financials for hundreds of SaaS businesses, SaaS Capital has put together a list of five key value drivers every seller should pay attention to as prepare for the sale of their company or their company’s stock (an equity raise).
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We were looking for a modest amount of capital to invest in additional product development and acceleration of customer acquisition, and the SaaS Capital line-of-credit provides the right amount of capital in a non-dilutive form.

Mark Rankovic

CEO, Certica Solutions

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