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Do PE Acquisitions of Public Startups Imply We've Hit a Pricing Bottom?

Tom Tunguz

But no relationship exists between the Nasdaq’s price level & multiples. Zendesk & Anaplan announced their acquisitions within days of each other & their multiples bound the outer edges of the range: 5.1x & 13.4x. The more free cash the company produces, the lower the acquisition multiple. Growth Rate.

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A $30B Software Company from a $15m Investment

Tom Tunguz

A former venture capitalist, Mark Leonard started Constellation in 1995 with $15m of outside investment & a goal of buying vertical software companies with a moat & good unit economics. Acquisition. Price Increases. Acquisitions increased revenue 33%. New bookings added 10% ; price increases 5%. Net Growth.

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What the $6B Coupa Acquisition Means for Software Startups

Tom Tunguz

The acquisition is notable for three reasons. First, the premium to the public price is 31%. Third, it’s the most substantive acquisition to announce this year after Figma’s announced its sale to Adobe. As Michael Mauboussin writes in Expectations Investing , there’s information in price.

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The Pros and Cons of Letting Your Biggest Customer Invest In You

SaaStr

Q: I run a bootstrapped software company and our biggest customer (60% of our revenue) has offered on several occasions to invest in the company. Taking an investment from your largest customer certainly will complicate things. They may be worried you are an affiliate of the BigCo and not a practical acquisition target.

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The Private Equity Math of 1+1=3 in SaaS Acquisitions

SaaStr

In other cases, getting to invest more heavily for a few years as private company can fuel faster growth, and a later IPO at a much higher price. The post The Private Equity Math of 1+1=3 in SaaS Acquisitions appeared first on SaaStr. Well a lot of things. And there’s a third case, of 1+1=3. But substantial.

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16 Customer Acquisition Strategies To Increase Conversion Rates

User Pilot

With the right customer acquisition strategies, you can convert potential customers to paying users and set the stage for turning them into long-term loyal users. Best practices for effective customer acquisition and product-led growth. Focus on the right customer acquisition channels. What is a customer acquisition strategy?

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What is a Cost-Plus Pricing Method? Pros, Cons & When to Use It

User Pilot

Working out pricing for a SaaS can be difficult, so consider using a cost-plus pricing method. TL;DR Cost-plus pricing, or markup pricing, is where you add a set to a product’s unit cost, often overlooking competitive market prices. Justifying price increases is easier when adopting a cost plus strategy.

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