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.
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.
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.
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.
Last month I had the pleasure of presenting at the KCSaaS event in Kansas City, MO. KCSaaS is a grassroots industry group spearheaded by longtime SaaS sales executive Mike Poledna. He started the group about a year ago after not finding many SaaS networking and knowledge share opportunities in Kansas City.
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.
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.