Clouded Judgement

APRIL 26, 2024

As a reminder, there can be normal quarterly spend variability in the timing of our cloud infrastructure build-outs and the timing of finance leases. The promise of SaaS is that growth in the early years leads to profits in the mature years. We continue to bring capacity online as we scale our AI investments with growing demand.

Azure 177

Azure Cloud Software AI 177

Baremetrics

SEPTEMBER 24, 2021

Equity financing is a method of capital raising via the selling of stock. While the phrase "equity financing" is often used to refer to the funding of publicly traded businesses, the term is also applied to private company financing. What is Equity Financing in SaaS? Equity Financing 2. Table of Contents.

Finance 98

Finance Venture Capital SaaS Payments Payments 98

CloudGeometry

MAY 22, 2021

In SaaS, technical debt isn’t a bug, it’s a feature – it’s a feature of creativity and velocity. It’s common to refer in the aggregate to code that doesn’t do so well as (squirm and wait for it … ) technical debt. Shouting “technical debt” might feel good. Avoided infuriating that valued customer!

software development velocity 130

software development velocity Underperforming Technical Team SaaS Cloud 130

CloudGeometry

MARCH 14, 2022

This seems easy, but it’s not, especially when you’re building a SaaS stack and don’t have the deep technical resources to compete with Apple, Facebook, or Google (you’ll get compared to them whether you like it or not). We believe it requires a tighter focus on feature friction as an aspect of technical debt.

DevOps as a Service 130

DevOps as a Service Well Architected Framework SaaS AWS 130

Tom Tunguz

JANUARY 26, 2020

If you want to read more, Merchants of Debt and King of Capital are good books.). There are SaaS focused funds, crypto funds, bio funds, double bottom line funds, middle-of-the-country funds, diversity focused funds, university seed programs, and many other flavors. Real estate, hedge funds, derivatives, all kinds of assets.

Venture Capital 198

Venture Capital Merchant Services Innovation Finance 198

The SaaS CFO

AUGUST 29, 2019

How Venture Debt Helps Founders Grow Their Businesses Many founders of SaaS businesses I speak with look only to equity to finance the start-up and early growth of their businesses. They may not be aware of, or do not appreciate the value of, venture debt financing which is complimentary to venture financing.

Finance 99

Finance SaaS Business 99

OPEXEngine

AUGUST 23, 2022

Our August SaaS conversation focused on high performance in R&D, with OPEXEngine CEO and Founder Lauren Kelley hosting Bain Expert Partner Rob Levy for an energizing discussion on this critical topic. Top R&D KPIs Every SaaS Company Should Track & Benchmark. Top R&D KPIs Every SaaS Company Should Track & Benchmark.

Outsourcing Services 59

Outsourcing Services Technical Review CTO Coach Software Review 59

Baremetrics

AUGUST 6, 2021

Although bookkeepers and accountants share some duties, for example preparing tax returns or producing the end of year financial statements, a bookkeeper’s main duty is keeping the basic, daily finances in order. SaaS metrics with Baremetrics But what if you have too many receipts and invoices to be able to do that? Table of Contents.

SaaS Payments 105

SaaS Payments Payment Services Payment Solutions Business 105

Baremetrics

AUGUST 23, 2021

Now, we use bootstrapping to describe the not quite impossible task of building your business without financing. If you choose not to finance your business by selling part of it to venture capitalists, and you also do not want or cannot secure a loan, then you are left with bootstrapping. What does bootstrapping look like for SaaS?

Business 96

Business Payment Services SaaS Payments Payment Solutions 96

Tom Tunguz

APRIL 29, 2017

Venture debt dilutes founders much less than equity rounds. Low interest rates have increased the attractiveness of venture debt, because the cost to borrow is low. Venture debt is an attractive financial product. The chart above shows the amount of venture debt borrowed by US technology startups. Late stage startups.

Startup 111

Startup Finance Business Model Trends 111

Baremetrics

MAY 7, 2019

There are more funding and financing options for startups today than there ever have been before. There’s also been an explosion in debate and transparency about navigating startup funding and financing. Bootstrapping vs VC, debt vs equity, profitability vs hyper-growth, sustainability vs substantial exits, the list goes on.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

CloudGeometry

MARCH 3, 2022

When developing a SaaS product plan, it’s important to recognize two foundational principles. First, SaaS is a business strategy, not a technology strategy. Second, there is no one-size-fits-all SaaS architecture (the second principle is a corollary of the first). So why put it on our shortlist?

Well Architected Framework 130

Well Architected Framework VPCs (Virtual Private Cloud) SaaS Cloud 130

Baremetrics

APRIL 21, 2021

To do so, we decided to ask 30 SaaS Founders their thoughts on raising money and venture capital. In this article, we break down the questions asked and the insights shared on raising capital for SaaS businesses. Key Takeaways from SaaS Founders. Raising Capital for Your SaaS Business. Debt financing, Lender, or both?

Venture Capital 71

Venture Capital SaaS Finance Scale 71

OPEXEngine

MARCH 9, 2022

R&D is the backbone of any SaaS company, yet to many CFOs, it is still a black box. How can Finance and Engineering management work together to diagnose weak areas, and shift R&D resources to produce better outcomes for the company? We looked at fast growth and slow growth SaaS companies.

Software Review 59

Software Review Development Team Review Technical Review Outsourced Development 59

Tom Tunguz

NOVEMBER 7, 2017

First, the cash available to finance acquisitions on the balance sheets of public companies has grown by 20 X over the last 10 years and now totals more than $8.5 Second, the market capitalizations of the public SaaS companies have increased by 28X over the same time period. billion - sufficient for 30 enterprise unicorns.

Acquisition 127

Acquisition Marketing SaaS Finance 127

Baremetrics

SEPTEMBER 10, 2021

Assets are all the things of value possessed by the company, whether financed by liabilities or equity. In the case of a SaaS business, your most valuable assets are the contracts you have with your clients and the platform they use. How are balance sheets unique for SaaS? Many SaaS businesses have zero inventory.

SaaS Payments 93

SaaS Payments Deferred Revenue Outsourcing Services Payments 93

Tom Tunguz

FEBRUARY 14, 2016

There are several forms of venture debt. Venture debt can supply additional capital for a startup to grow at a lower cost of capital than equity. Then they raise $2M of venture debt. The $5M in equity costs 25% and the $2M in debt costs 2% in warrants plus interest over the course of the loan.

SaaS Payments 100

SaaS Payments Startup SaaS Payments 100

Chart Mogul

AUGUST 15, 2019

Revenue-based financing is quickly becoming a popular way for startups to raise funds without sacrificing equity. New investment structures are gaining traction in the early-stage SaaS financing market. Bigfoot Capital invests in initial-scale SaaS companies using both RBF and venture debt investment structures.

Finance 85

Finance Payments Revenue Payment Solutions 85

OPEXEngine

OCTOBER 23, 2020

The data so far suggests that investors, particularly those focused on earlier stage financings, are taking a more cautious approach to new deals and valuations while they wait to see how individual companies perform and which way the economy will go. Using Debt Funding to Bridge the Gap. Cash Is King (Again).

Technical Review 52

Technical Review Scale Payment Services Marketing 52

Kellblog

MAY 16, 2020

I’m pleased to announce that I was recently featured in a six-part SaaS podcast mini-series on SaaShimi hosted by Aznaur Midov , VP at PNC Technology Finance Group , a debt provider who works primarily with private equity (PE) firms for SaaS buyouts, growth capital, and recapitalizations. Key SaaS Metrics with me.

Metrics 96

Metrics SaaS Technical Review Interviewing 96

Point Nine Land

JUNE 3, 2020

To try to get a better sense for the state of fundraising I went to Crunchbase , pulled some data on financing rounds of the two months, and compared the numbers to the same period in 2019. More importantly, there can be significant and varying delays between the closing and the announcement of a financing round. I didn’t expect that.

Investment 87

Investment Finance Startup SaaS 87

Baremetrics

AUGUST 30, 2021

Few business owners are as passionate about what they do as those of SaaS companies. What Is owner’s equity in SaaS? What’s included in owner’s equity in SaaS? What Is owner’s equity in SaaS? First and foremost, owner’s equity helps you evaluate your finances. What’s included in owner’s equity in SaaS?

SaaS 97

SaaS Outsourced Development Payment Services Payments 97

Baremetrics

APRIL 27, 2021

Early-stage SaaS founders should spend far more time executing instead of strategizing. The urgency to execute is particularly true for making financing decisions. At Bigfoot Capital , we fund early-stage SaaS companies. At the end of the day, speed and certainty matter most when securing capital for your SaaS company.

Startup 71

Startup Sales Hiring Venture Capital SaaS 71

Baremetrics

AUGUST 10, 2021

Financial ratios are essential for decision-making in every SaaS company. An essential ratio for SaaS companies is the acid-test ratio and is commonly referred to as the quick ratio. 3 What is the Acid Test Ratio for SaaS companies? The SaaS Acid Test Ratio Formula: 4 Can SaaS companies apply the Acid Test Ratio?

Payments 59

Payments Outsourced Development Churn Metrics 59

Chart Mogul

AUGUST 15, 2019

Revenue-based financing is quickly becoming a popular way for startups to raise funds without sacrificing equity. New investment structures are gaining traction in the early-stage SaaS financing market. Bigfoot Capital invests in initial-scale SaaS companies using both RBF and venture debt investment structures.

Finance 52

Finance Payments Revenue Payment Solutions 52

OPEXEngine

NOVEMBER 2, 2021

Finance leaders must think through the implications of changing pricing models, high investor interest, and robust capitalization options, specialists say. Today, SaaS is in a very different place. And, if debt is the way to go, using what structure? We are now entering the consolidation phase for SaaS,” says Gartner.

DevOps as a Service 52

DevOps as a Service SaaS Outsourced Development Subscription 52

SaaStr

NOVEMBER 11, 2022

Technical debt. And it really makes no sense because I’ve asked so many of the best SaaS CEOs that are public how to go multi-product. And the best one of all, if you didn’t see it, we did it at one of our digital events this year was Spencer Skates, CEO of Amplitude, one of my favorite SaaS CEOs. Setting goals.

Outsourcing Services 186

Outsourcing Services Banking CTO Hire New CTO 186

SaaSOptics

DECEMBER 20, 2021

Everything You Need to Know About SaaS Sales Forecasting Methods. Forecasting is particularly essential—and challenging—for B2B SaaS companies. That’s why we’re sharing this guide to SaaS revenue forecasting. Building a SaaS revenue model that accurately reflects your business requires several data inputs: . GAAP Revenue.

Forecasting 94

Forecasting Deferred Revenue SaaS Sales 94

OpenView Labs

MAY 4, 2020

It is important not to forget that especially for SaaS businesses the value of the underlying assets will be unchanged. Debt financing. As companies have evaluated financing many have asked us how to approach the use of debt—specifically how to think about existing, undrawn credit facilities.

Marketing 52

Marketing Banking Finance Government 52

Baremetrics

OCTOBER 7, 2021

Interest is excluded to give the company a “debt-agnostic” view of their profitability. That is, it shows how the profitability of the company would look without having to pay for debt financing. This is done because paying interest on debt isn’t really related to the operations of a company. Try Baremetrics Free.

Payments 97

Payments Payment Methods Payment Services SaaS Payments 97

OPEXEngine

JANUARY 28, 2020

As Chief Credit Officer at Lighter Capital, I work behind the scenes grappling with the data that informs all of our decision-making regarding financing deals, from revenue-based financing (RBF) to term loans and lines of credit. What should VCs make of revenue-based financing? Funding options by stage of growth.

Venture Capital 61

Venture Capital Finance Payments Revenue 61

Baremetrics

AUGUST 22, 2021

As a SaaS founder, you know that failed payments can break your growth targets. The statement of cash flows has three main sections: Operating Activities: This includes all main revenue-generating activities of your business as well as any other activities that are not investing or financing. What are your acquisition costs?

Payment Solutions 91

Payment Solutions Payment Methods Payment Services Payments 91

Baremetrics

OCTOBER 1, 2021

It basically stipulates that money today is worth more than money tomorrow, and most people understand this at a fundamental level before the finance people come in and complicate things. Discount rate in SaaS Discount rate chart How can the discount rate be used? That’s the essence of the discount rate. Table of Contents.

SaaS Payments 96

SaaS Payments Payments SaaS Payment Services 96

Baremetrics

JUNE 28, 2021

All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. Quick Ratio = (Current Assets - Inventory) / Current Liabilities Debt to Equity Ratio - This ratio indicates the ratio of total debt or liabilities with the amount of Shareholder equity.

Metrics 59

Metrics Payment Services Payments Payment Methods 59

Tom Tunguz

JULY 6, 2014

Because GoPro is the first sizable consumer hardware IPO in eons and because the startup world has a blossoming hardware segment, I thought it would be interesting to compare and contrast a top consumer hardware startup with the benchmarks of public SaaS companies using GoPro’s S-1. The average for the most recent SaaS publics is 2.0,

Startup 129

Startup Sales Hiring Benchmarks Advertising 129

OPEXEngine

NOVEMBER 17, 2020

That includes deciding when to accelerate recovery spending and what financing the business needs to execute its plan. . As companies work with investors and lenders, clearly outlining cash runway and financing requirements is imperative to prepare for different scenarios. Include sufficient detail.

Forecasting 52

Forecasting Finance Headcount Communication 52

OpenView Labs

APRIL 10, 2020

Debt capital markets were all the rage this week. Debt is nothing new but it has been slower to come to Silicon Valley as a mainstream form of financing. That is changing and Slack , Wayfair , and Airbnb all executed debt transactions – albeit on very different terms – this week. geographies like New York.

Marketing 52

Marketing Benchmarks Government Trends 52