The Startup Funding & Financing Guide

Baremetrics

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. Let’s explore the funding and financing options for your startup. Company C was funded by pre-orders from customers, a friends and family round, and then through revenue-based financing for a period of time. Equity Financing. Revenue-based financing.

Customer Success & Finance: Get Aligned!

ChurnZero

This week we hosted a well-attended webinar on – Customer Success & Finance: Get Aligned! The webinar discussed the process and impact of the renewal from both the Customer Success and Finance point of view. The post Customer Success & Finance: Get Aligned!

SaaS Finance Terminologies: Acronyms of the Trade

SaaS Metrics

Some of the terms included here are also common to other fields such as finance, but they make sense when you are dealing with SaaS (that’s why they have also been included). Let’s jump straight to the SaaS dictionary (arranged alphabetically) that helps users better understand the cloud technology, Uncategorized SaaS Finance Terminologies SaaS Finance Terms SaaS Terms Software As A Service Terminology

?? SaaS Roundup #120: Financing, selling, scaling

Chart Mogul

six paths to financing a SaaS business In SaaS Roundup, we comb through the noise to find you only the best SaaS-flavored reads of the week — just our top three. Six Paths to Financing a SaaS Business.

Building auction pressure in financings

Tom Tunguz

The most effective financing processes, like the most effective auctions, create scarcity. Of late, many founders have been triggering pre-emptive financing processes for their raises. An early process has the potential to eliminate financing risk much earlier than expected. Founders can steer the financing to investors of their choice with more control than a standard process. First, like any financing, these processes are time expensive.

PODCAST 34: The Benefit of Finance Background to Help Company Growth w/ Rob Lopez

Sales Hacker

Rob has a background in finance, but jumped into the startup world first at Groupon, where he was the GM for their Latin American division, before moving to New York to become the first sales hire for Justworks. The benefits of a career in finance on evaluating companies.

Global blockchain spending to hit $12.4B by 2022; finance sector leads growth

IT World

While spending for more developed use cases in the financial sector like trade finance and cross-border payments is still healthy and growing strong, relative to six months ago we've seen an acceleration in spending across a variety of other areas, such as energy settlements and warranty claims." The largest chunk of worldwide spending on new blockchain networks – nearly $2.9

The Decreasing Follow On Financing Success of Startups

Tom Tunguz

In other words, irrespective of the size of a startup’s financing round, whether in the series A or series B, follow-on rounds are typically raised 500 days after the previous one closes. The rate at which startups are raising follow-on rounds is decreasing, and has decreased steadily from 2003 through 2013. Between 2003 and 2006, post-Series A startups raised series Bs about 57% of the time. However from 2011-2014, that figure fell to 28%.

The Financing Trends of Billion Dollar SaaS Companies

Tom Tunguz

I’ve gathered the financing histories of the 41 publicly traded SaaS companies and adjusted them for inflation. The table below compares the financing patterns of SaaS companies over time, in cohorts of 4 years. The number of rounds of financing each company raises before IPO has nearly doubled from 2.5 That pattern may be driven by an increasingly friendly financing environment or because of increased capital needs of the business or many other reasons.

Why ‘Move fast and break things’ doesn’t always work for mission-critical function for Finance

Chargebee

Don't move fast and break things. Move Slow & Make Things. Chargebee+QuickBooks pulls your recurring billing & subscription accounting out of the dark ages

What Makes Zoom So Special?

OpenView Labs

Finance & OperationsThe post What Makes Zoom So Special? appeared first on OpenView Labs.

The Key Financing Attributes of Startups in the Billion Dollar Club

Tom Tunguz

The WSJ published a recent chart of the 49 startups with billion dollar valuations. According to their research, there have never been as many privately held companies with such high valuations ever. The absolute number of these massively valuable companies alone is amazing. Ten years ago, most of them would have gone public by now. But what other insights can we tease from the data about these very special businesses?

Founders: Please don’t allow anyone to screw your early backers

The Angel VC

Understanding the mechanics of founder re-ups in financing rounds This post will likely not make me more popular and might offend some people. In the last 12 months or so it happened several times that later-stage VCs, as part of financing rounds, offered a “re-up” (i.e.

Podcast: Inside Scoop on Financing and Structuring the Deal the Right Way, an Interview with Matt Boettner

Divestopedia

Deal structures are complicated, wonderful things. You really can negotiate for the terms you need to make a successful business transition. Let Matt Boettner tell you how

Crossing The Chasm to Series A

The SaaS Garage

This means, you raise your typical Seed round and plan for a €1.5M – €2 intermediary ( Pre A ) financing in 9 – 12 months in order to boost your then €800k – €1M annual subscription revenues above the magic €1.8M Blog Execution Financing Seed Series A

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My Final Verdict on Multi-Year, Prepaid Deals

Kellblog

Under ASC 606, multi-year, prepaid deals are seen as significant financing events , so — if I have this correct — revenue will exceed the cash received [8] from the customer as interest expense will be recorded and increase the amount of revenue.

Subscribed Podcast: Sandeep Jain on the $10B opportunity in enterprise IT

Zuora

Finance IT Subscription EconomyOn the latest Subscribed Podcast, we talk to Sandeep about the ongoing transition to “as-a-service” business models, customer support, and “the next $10 billion opportunity in enterprise IT.”. The post Subscribed Podcast: Sandeep Jain on the $10B opportunity in enterprise IT appeared first on Zuora.

Developing an Effective Long-Term Data Strategy for Your Company

OpenView Labs

Finance & OperationsAnalytics is considered to be critical at many companies, but few are able to get it right. Most companies quickly realize that getting a strategy in place can actually be quite hard.

How to Pick a Term Sheet: OpenView’s 5 Step Framework

OpenView Labs

Finance & OperationsEditor’s Note: This article was co-authored by Mackey Craven and Sean Fanning. .

When should you hire a CFO?

Point Nine Land

Lemkin recently posted a tweetstorm about his observation that most startups are bad at finance. As you’d expect from Jason, he didn’t try to sugarcoat things: A top trend I have noticed past 3 years: Startups are MUCH, MUCH worse at finance. cfo saas startup venture-capital finance

Crossing The Chasm to Series A

The SaaS Garage

This means, you raise your typical Seed round and plan for a €1.5M – €2 intermediary ( Pre A ) financing in 9 – 12 months in order to boost your then €800k – €1M annual subscription revenues above the magic €1.8M Blog Execution Financing Seed Series A

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Subscribed Podcast: Prof Daniel McCarthy on CLV, valuations, and subscription pitfalls

Zuora

Finance Industry: SaaS Subscription EconomySelect excerpts from Subscribed Podcast with Professor McCarthy about subscription business valuation, CLV, and pitfalls to avoid. The post Subscribed Podcast: Prof Daniel McCarthy on CLV, valuations, and subscription pitfalls appeared first on Zuora.

SaaS Metrics Refresher #7: Revenue Recognition

Chart Mogul

Best Practices email course finance saas saas metrics refresherIn this week's lesson, we're tackling the tricky process of converting bookings into revenue — also known as revenue recognition. Repeat after me: cash is not revenue!

Debt Capital: An Attractive Supplement Already For Pre-A SaaS Startups? – A Chat With Daniel Kreis, CEO of Deutsche Handelsbank”

The SaaS Garage

We had to finance everything with money which we received from equity financing rounds. Blog Financing Debt Capital Funding

Preparing For Acquisition - The Due Diligence Checklist

Cardin Partners

FinancePreparing to sell your company requires a lot of work. Whether planned or unsolicited, when the time comes to ready the company for sale, you will be able to move much more quickly if your financial house is in already in order.

SaaS Valuation FAQ Series – Part 5: The LTV:CAC Ratio and the Implications of Misallocating CAC to COGS

Cardin Partners

If you’d like an even better intuitive sense of how these numbers relate, please feel free to change the inputs in the interactive calculator, below: M&A SaaS FinanceThere’s something a bit magical about the LTV:CAC ratio.

There’s more than one path to $100 million

Point Nine Land

financing venture-capital saas startupA couple of years ago I wrote a post titled “How fast is fast enough?”. The subtext of the question was “How fast do you have to grow if your ambition is to get to $100M in ARR and build a very large company”.

The complete guide to SaaS revenue recognition with ASC 606

Chart Mogul

Free download: The Ultimate SaaS Finance Cheat Sheet , featuring: – Definitions of common terms. Best Practices Accounting finance revenue Revenue Recognition saasWhat's the difference between bookings and revenue? Revenue recognition.

SaaS Valuation FAQ Series – Part 3: Customer Acquisition Cost (CAC) Recovery Time

Cardin Partners

M&A SaaS FinanceQ: How does my CAC recovery time affect the rate at which I can grow, without taking on any outside capital?

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SaaS Valuation FAQ Series – Part 2: Customer Life Time Value (LTV)

Cardin Partners

M&A SaaS FinanceQ: Should I use revenue and churn alone to calculate LTV, or should I also consider COGS and the time value of money?

SaaS Valuation FAQ Series - Part 1: The Quick Ratio

Cardin Partners

M&A Finance SaaSQ: What’s more important as a determinant of financial value: growth or churn? A: Probably the most common single question we get – and the Quick answer is the Quick Ratio , which accommodates both.

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SaaS Valuation FAQ Series – Part 4: Improving your SaaS metrics and the ‘Rule of 10%’

Cardin Partners

M&A SaaS FinanceQ: If we are going to invest effort in ‘moving the needle’ with respect to just one of our core SaaS metrics, where will we get the most bang for our buck? A: Please read on. The short answer is: CAC, followed by churn.

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Funding Demystified! Free Course Offers Founders a Guide to Raising Capital

TechStars

Whether you’re an entrepreneur raising funds or an investor looking to take your venture finance skills to the next level, Brad Feld and Jason Mendelson have the answers for you. How do venture deals really work?

Three Ways Startups Are Coming for Established Fintech Companies—And What To Do About It

Andreessen Horowitz

In the world of finance and financial technology, established companies are starting to look at the rearview mirror at fast-approaching startups, wondering just true the phrase “objects in mirror are closer than they appear” might be.

Founder’s Guide to SaaS Accounting Software

The SaaS CFO

It’s one of the most common questions that I receive from SaaS finance professionals and founders. Have I Outgrown My SaaS Accounting Software? They ask, “We’ve outgrown our current accounting software. What SaaS accounting software do you recommend?” There are so many choices in the marketplace, but I feel that few software vendors focus on […]. The post Founder’s Guide to SaaS Accounting Software appeared first on The SaaS CFO. Accounting Software Accounting

18 investors fueling Latin America’s SaaS superstars

SaaStock

Here is our selection of top funds according to the predominant stage they are financing. The focus of ONEVC is on early stage and seed financing for entrepreneurs with high promise to create businesses that turn into leaders in their markets.

Podcast: How an Acquisition Strategy Can Help You Scale Your Business, an Interview with Troy Berg

Divestopedia

Plus, he talks about how the 'money will always come' when you're trying to finance a deal Troy Berg takes us through his eight acquisitions and what strategies worked best for him to grow his company 3x in three years.

Get Excited! 50+ New VCs Are Coming to SaaStr Europa!

SaaStr

“Hacking Your Cap Table: How Much Equity to Give and When” with Equify Founder and CEO Alex Leger Cattarini, Index Ventures Talent Partner Dominic Jacquesson, Futrli Founder and CEO Hannah Dawson and Alan Head of Risk, Finance and Compliance Paul Sauveplane.

Why do the Slack Founders Stewart Butterfield and Cal Henderson own so (relatively) little of the company’s shares?

SaaStr

Look, a lot of rounds of financing — all the way to a Series H —at almost any valuation do add up to significant dilution: Beyond that, Slack took additional dilution from its pivot from a gaming company to the Slack we know today, a communications company.

The 18 Awesome Women of SaaS in Asia

SaaStock

After 11 years in finances, in 2016 she became the CFO of Brinc.io, boldly entering into the tech world. Jessie provides invaluable know-how to portfolio companies on cash flow, fundraising, and financing strategies.

Who are Asia’s SaaS VCs?

SaaStock

Financing was an obvious must but not the necessity of it being from local sources. SAIF Partners is one of the top private equity firms that provides growth capital financing for Asia businesses. Click Ventures is a VC that finances tech companies with high scalability promise.

Key SaaS Lessons to Maximize Revenue

Navint

He’s adamant about not taking a siloed approach to marketing, sales, and finance, but rather making sure all your key business functions have a seat at the table when you’re choosing the solutions and designing your end-to-end processes. “If

Jacob's Ladder in the Startup Fundraising Market - How Startups Today Skip a Round of Fundraising

Tom Tunguz

Many founders have aspired to “skip” a round of financing. in investment - skipping a round of financing. How do you skip a round of financing? Jacob’s Ladder is a toy of thin wooden blocks attached by ribbon. If you hold it in your hand and rotate it to touch the second block, it seems to set off a cascade of blocks falling from the top. The blocks haven’t changed positions, though they do rotate. It’s a moving optical illusion.