article thumbnail

Dear SaaStr: How Would You Invest a 5 Million Dollar Payout From an Acquisition?

SaaStr

Dear SaaStr: How Would You Invest a 5 Million Dollar Payout From an Acquisition? He still hadn’t figured out how to invest it! Here’s my best advice: First, resist the urge to invest in anything specific at first. Don’t invest in restaurants or real estate ventures you don’t understand.

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.

Insiders

Sign Up for our Newsletter

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

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.

article thumbnail

What the $6B Coupa Acquisition Means for Software Startups

Tom Tunguz

The acquisition is notable for three reasons. 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. This morning, Coupa announced its sale to Thoma Bravo for $6.2b.

article thumbnail

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

Tom Tunguz

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. These figures will fill the comparables sections of investment memos.

article thumbnail

The People Roadmap for Startups

Tom Tunguz

Startups create products. When a business is ready to scale, a startup ought to develop an organizational roadmap. Managers of paid acquisition, organic acquisition, and marketing operations/systems report to the head of demand generation. The question for early-stage startups is how to start building this structure.

Startup 355
article thumbnail

Micro Startup Acquisition: The Definitive Guide to Buying and Selling Small Startups

Neil Patel

The problem with selling your startup is the long exit time. Who wants to wait almost a decade to buy a startup when the face of tech is evolving at such a rapid pace? That’s an expensive mistake if you make the wrong investment. Micro startup acquisitions. What does this mean for startups? The solution?