Both Sides of the Table

JULY 1, 2015

Startup companies continue to grow at unprecedented rates, raise enormous amounts of venture capital and achieve valuations that imply that they will continue to grow rapidly for the foreseeable future. I’m not saying you shouldn’t grow engineering or do PR. But as with any sales advice, revenue diversity matters.

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Balance Sheet eCommerce Venture Capital Acquisition 150

Cracking the Code

NOVEMBER 10, 2009

It is intriguing to see the M&A dynamics in the space, highlighting the interest of tech companies for recurring revenue streams - even SAP announced in their analyst call earlier this month that they were moving from perpertual licenses to five year term licences. Detailed SaaS Spreadsheet (Valuation and CAC benchmark).

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Software Review Technical Review IPO Cloud 48

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. SaaS 13 Index Valuation. anecdotes. (13).

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Software Review Technical Review Valuation Portfolio 48

Both Sides of the Table

SEPTEMBER 28, 2013

A $1 trillion global market. In the startup journey if you have success in your early product launches, fund raising and PR you’re likely to get “inbound interest” from likely acquirers. Sure, our revenue is growing, but is that enough to raise an internal round? Dilution / valuation. Are tacking.

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Startup Dilution San Diego Stock Options 417

Cracking the Code

NOVEMBER 10, 2009

Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Impact of the recession on SaaS Sales&Marketing pr. Global warming: a plague for humanity? Global Warning!

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Software Review Cloud Technical Review Sales Cycle 48

Hearpreneur

JANUARY 13, 2021

Specifically, here is what we’re planning to work on: Quadruple our gross revenue and total cases/consultations. Add an income stream (new area of practice) that will be diversifying our business’ revenue. 3-Expand globally. In 2021, my business goals have been reinvented and pushed to be more competitive than we’ve ever been.

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Entrepreneur Mobile Valuation Global 62

Cracking the Code

FEBRUARY 25, 2008

As I was building the spreadsheet, I also included the revenue multiples for this set of companies, both for the trailing 12-month (TTM) and the forward 12-month (FTM). Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Impact of the recession on SaaS Sales&Marketing pr. Global Warning!

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Software Review Technical Review Europe Venture Capital 48

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

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Software Review Clawback Sales Salary 91

Cracking the Code

DECEMBER 16, 2006

however, public SaaS companies like Concur, Saba, Taleo, LivePerson and Ultimate are growing 50-100% per year and trading at an average 5x trailing revenue multiples (I excluded salesforce leading the pack with 9x!) whereas traditional software companies of this size have a growth rate of less than 10% and revenue multiples of 2-2.5x.

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Cracking the Code

JANUARY 28, 2008

Eloqua is bringing this revolution to the B2B marketers by providing on-demand applications and best-practice expertise for B2B marketers to execute, automate and measure effective marketing programs that drive revenue. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Global Warning!

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Software Review Technical Review Los Angeles Europe 48

www.readwriteweb.com

OCTOBER 18, 2010

These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. Raymond has built a nice business through efficient distribution deals and will do about $250,000 in revenue this year.

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Marketing Bootstrapping Incubator Angel Investor 52

www.readwriteweb.com

OCTOBER 18, 2010

These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. Raymond has built a nice business through efficient distribution deals and will do about $250,000 in revenue this year.

Marketing 52

Marketing Bootstrapping Incubator Angel Investor 52

Cracking the Code

MAY 25, 2010

A few highlights from the different keynotes and speakers On top of Jason, we also had the chance of having many great speakers at the event and here are a few quotes and notes that I have taken during the different keynotes and panels: Joe Payne, CEO of Eloqua moderated the panel on Revenue Performance Management. SaaS 13 Index Valuation.

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Software Review Cloud IPO Jordan 74

betashop.com

OCTOBER 8, 2012

From the start we said that we would never make a decision as to what features to build or what products to sell based on revenue alone, rather we would focus on things that make our customers smile and by doing so lots and lots of revenue will fall out over time. Never, ever, choose your investors based on valuation.

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Technical Review Technology Software Review Valuation 108

Cracking the Code

MARCH 10, 2008

I found this approach interesting, but it seems to me that gross margin is a more relevant benchmark than revenues, given that the GM of saas companies varies by type of application and size of the company (for example NetSuite went from about 50% GM three years ago to close to 70% today).

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Sales Software Review Marketing Technical Review 79

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

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Cracking the Code

SEPTEMBER 2, 2008

The Deutsche Bank report has a very interesting chart on the topic presenting the Free Cash Flow margins vs. the revenue growth four years post IPO for select software leaders: As you can see, with 20% Free Cash Flow margin and a 50% growth rate, Salesforce is well positioned in the pack! SaaS 13 Index Valuation. Global Warning!

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Software Review Software Technical Review Cloud 48

ReadWriteStart

FEBRUARY 13, 2020

First and foremost, you have to exclude the IPO performances of sure things like Saudi-owned Aramco which is en route to becoming the biggest global IPO in history. The value was about $100 billion; then, it was rounded down to the IPO valuation itself. Then, the market had its say. In retrospect, it’s easy to see what happened.

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Cracking the Code

JULY 6, 2007

I was surprised today when I went through the NetSuite IPO filling (S1) to see that it looked very much like any Enterprise software document - not a single mention of churn or % of recurring revenues. The reason for this difference, from an investor perspective, is that the SaaS model provides far clearer visibility into future revenues.

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Software Review Metrics Valuation Technical Review 66

Cracking the Code

FEBRUARY 4, 2008

T he response rate has been overwhelming and we ended up with 40+ companies and 80+ attendees, most of them CEOs and CxOs of leading public and private saas companies representing around 80% of the revenues of the SaaS industry in 2007. Your key business metrics are CMRR (Contracted Monthly Recurring Revenue) and cash. My Investments.

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Software Review South Korea IPO Portfolio 48

This is going to be BIG.

SEPTEMBER 12, 2022

I think the assumption is that when cycles snap back they come back so strong that future rental streams are likely to make up for missed near to medium-term revenue. An article on the failure of The Wing analyzed through the lens of changes in the commercial real estate market brought on by a global pandemic isn’t why you came.

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Both Sides of the Table

FEBRUARY 12, 2017

(there’s a great story from Jonah in the video but you have to watch to hear it :)) But it’s undeniable that it has become a digital media powerhouse having raised around $500 million in capital with a valuation reported at $1.7 billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million).

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