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.

How Revenue-Based Financing Works and What RBF Providers Care About

Chart Mogul

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. A high-level look at Revenue-based financing (RBF).

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

Appearance on the Twenty Minute VC: Financing Thoughts, The Private Equity Sales Process, and More

Kellblog

Harry’s interview was broad-ranging, covering a number of topics including: Financing lessons I’ve learned during prior bubble periods and, perhaps more importantly, bubble bursts.

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.

?? 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.

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.

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.

How We Run Finance & Operations with Two People at ChartMogul

Chart Mogul

With only 2 people on our Finance & Operations team, we have to be smart about how we use our resources. Finance & Operations. The Finance & Operations Team at ChartMogul. Scale your Finance & Ops department with the right tools.

How to Measure the Maturity of Your Finance Operations

SaaSOptics

For a B2B SaaS or subscription business, finance operations are no longer just a back office function. Finance executives are playing a larger role in their businesses' strategic direction and growth. To help, w e created the B2B Finance Operations Assessment. We use a three-level system covering three main B2B finance functions: Revenue Recognition, Invoicing & Payments, and Subscription Metrics & Analytics.

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

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

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.

What Makes Zoom So Special?

OpenView Labs

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

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

How to Turn ASC 606 into a Transformation Opportunity

Zuora

by Steve Judge, VP, Finance Transformation, CDK Global, LLC with Angela Ngo, Product Marketing Director, Zuora You can look at […]. Finance RevProThe post How to Turn ASC 606 into a Transformation Opportunity appeared first on Zuora.

How Envoy leverages SaaS Operations Management to empower flexibility and evolve what it means to be IT.

Intello

case study SaaS Software Optimization SaaS Usage Finance Getting Started complianceErin Merchant is the IT Manager at Envoy and very intentionally calls her department Workplace Tech.

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.

The Company That Owns Its Customers, Wins.

Zuora

Finance IT Operations Pricing Strategy Subscription EconomyRegardless of what industry you are in, pursuing a customer-centric business model and understanding customers through usage patterns and buying behavior, is becoming the key to success stories.

New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals

Kellblog

Now, personally, I don’t want to be financing my customers when I’m at a high-burn startup, so I’m going to try and avoid deals like this. The ramped shape of the curve is not about financing at all. I’m a former CEO and strategic marketer who’s pretty good at finance. [2] 3] I know in some cases, e.g., prepaid, flat multi-year deals, ASC 606 can actually decide there is a material financing event and kind of separate that from the core deal.

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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The Future of Financial Planning: eMoney

Zuora

Finance Industry: SaaS Subscription EconomyPowered with a forward-thinking and futuristic perspective, discover eMoney's growth with it's product roadmap, employee size, and client base from the latest Subscribed magazine. The post The Future of Financial Planning: eMoney appeared first on Zuora.

What does it take to raise capital, in SaaS, in 2019?

Point Nine Land

venture-capital financing founders entrepreneurship saas[link] Two weeks ago we released the 2019 edition of our (in)famous SaaS Funding Napkin.

The Future of Manufacturing: NCR

Zuora

Finance Industry: Internet of Things IT Subscription EconomyLearn how NCR is shaping the future of manufacturing with a curated mix shift to recurring software and services revenue from the latest Subscribed magazine. The post The Future of Manufacturing: NCR appeared first on Zuora.

What’ Revenue Recognition Got To Do With Subscription Growth?

Zuora

Finance Subscription EconomyWith more and more companies adopting a "as-a-Service" business model, revenue recognition becomes more and more complex. From the latest issue of the Subscribed magazine, learn how automation can help embrace your "as-a-Service" revenue contracts. The post What’ Revenue Recognition Got To Do With Subscription Growth? appeared first on Zuora.

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

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. .

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: 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.

Fintech Newsletter: July 2019

Andreessen Horowitz

Autonomous Finance. We are entering the era of autonomous finance. In the future, instead of drowning in a sea of finance complexity and confusion, … fintech economics financial servicesTo get this monthly update from the a16z FinTech Team, sign up here. Top Startup News.

Unprepared for SaaS Due Diligence?

SaaSX

Institutional Readiness Strategy CEO Finance Investment Bankers M&A Revenue Recognition ValuationMany SaaS companies go through due diligence in a less-than-ideal state. That’s a lot less stressful when you know what that means.

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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.

Intello launches integration with botkeeper to enrich data with SaaS spend.

Intello

Integrations Finance Bookkeeping SaaS Spend Management OptimizationWe’re thrilled to announce a new partnership with botkeeper , a leading automated bookkeeping platform. Botkeeper is a platform that uses bots instead of humans to do the bookkeeping; better, faster, & less costly.

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

Launching Intello to bring transparency to the SaaS ecosystem

Intello

We began to wonder how any finance or IT team could keep up with managing the ever-growing amount of SaaS applications. Tell your IT or finance manager about Intello and let us know (barak [at] intello.io) if you have any feedback or suggestions.

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!

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.

Transparency as a Service

Intello

SaaS IT CFO CIO Software Optimization FinanceWhile you're reading this, someone in your company just signed up for another SaaS application. With good reason--software empowers work and drives innovation.