article thumbnail

How The Stange and Odd World of Financial Accounting Drives Tech Acquisitions and Investments

SaaStr

But with that out of the way, let’s talk just enough about financial accounting to explain why Big Tech Companies both acquire smaller ones — and do corporate VC investment. Because in the short-term, it often costs basically close to nothing to acquire a smaller startup with cash on hand, or do a corporate VC investment.

article thumbnail

How The Strange and Odd World of Financial Accounting Drives Tech Acquisitions and Investments

SaaStr

But with that out of the way, let’s talk just enough about financial accounting to explain why Big Tech Companies both acquire smaller ones — and do corporate VC investment. Because in the short-term, it often costs basically close to nothing to acquire a smaller startup with cash on hand, or do a corporate VC investment.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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. Acquisitions increased revenue 33%. New Bookings. Price Increases. Contraction. -3%. Customer Churn. -5%. Net Growth.

article thumbnail

The Secrets of Scaling to Acquisition

Chart Mogul

The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021. VC-backed startups are buying other startups at the fastest pace in over a decade and North American startup investment totaled 155 billion this year so far.

Scale 96
article thumbnail

How Revenue Leaders at Box, Calendly, and Lattice Scaled From $0 to $100M+ and Beyond

SaaStr

She was hired because they saw a bit of softening in new business growth, and she came to help diagnose what was going on and help scale the business. While it may seem smart when you have five or fewer salespeople to sell anything and everything between $3k and $100k, that won’t scale. Attune sellers for one or the other.

Scale 226
article thumbnail

From $5M to $100M: How to Scale a Multi-Product Startup with Lattice CEO Jack Altman (Video + Podcast)

SaaStr

Many of you are familiar with this visual, most likely created by an investment firm. You have to keep investing in the new product while getting back to the current product. Keep leaning into the investment, and don’t let off the gas. Or, this is a company bet, and you’re willing to invest 70% for a year.

Scale 231
article thumbnail

How To Scale Your Go-to-Market Strategy at Every Stage with Cipio Partners Managing Partner Rolan Dennert (Video)

SaaStr

You’ll probably have a smaller lifetime customer value and customer budget for acquisition. Find The Balance Between CAC And LTV The achievable lifetime value defines your customer acquisition cost target. Every company is different and will have varying solutions, customer acquisition costs, and lifetime value.

Scale 228