The SaaS Finance Roundup

SaaSX

we thought we’d spotlight some of our favorite SaaS financing pieces. The many facets of SaaS financing remain among the most confusing, overwhelming and scary topics for young SaaS founders. Top 20 Things SaaS Founders Should Know About Finance.

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!

How SaaS CFOs Automate Finance

Sage Intacct

Bowery Capital’s annual Finance and Ops Summit draws hundreds of finance leaders from fast-growth SaaS companies, many of which are seeking to upgrade their financial foundation to deliver a higher level of reporting and forecasting.

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.

?? 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.

Key Bank SaaS Survey: Four Takeaways for Finance Teams

Sage Intacct

At fast-growing SaaS companies, CFOs and finance leaders are increasingly viewed as the business-model architects who analyze and guide the organization to successful outcomes.

How to Build Auction Pressure in Acquisitions and Financings

Tom Tunguz

Salesforce’s bids would be a combination of cash and stock, and Salesforce would likely have to raise debt to finance the acquisition. Public companies are often required to disclose the process of their acquisition. LinkedIn’s sale to Microsoft is described step by step in an SEC disclosure and it offers both a peek into how these massive acquisitions are consummated, and also illustrates the best practices for how to run a process, both acquisitions and fundraisings.

4 Key Takeaways from the Modern SaaS Finance Summit

Sage Intacct

“I have a board meeting next week and this event is materially changing how I think about and how I am going to present on the model and the direction of the business.”. Software/SaaS Thought leadership SWTL

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%.

How SaaS Finance Teams Prove out Business Models

Sage Intacct

In the 14th century, a cathedral builder was hustling down the dirt road in medieval France and passed three people stacking bricks. Software/SaaS Customer Story SWTL

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 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

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.

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?

Seeking the ‘Google Maps for Money’

Andreessen Horowitz

fintech autonomous finance credit card debt debt settlement financial services student debtWhen you enter your desired destination into Google Maps, the app plots out the fastest, most efficient route, even adjusting for traffic and coffee stops along the way. You don’t even need to enter your current location—Google Maps already knows … The post Seeking the ‘Google Maps for Money’ appeared first on Andreessen Horowitz.

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

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.

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.

Fleetcor Acquisition of Nvoicepay Yields Insights on B2B Payments

Software Platform Consulting

No muss, no fuss with invoices and certainly not with purchase orders and no fancy financing. B2B Software Payments Supply Chain Finance Virtual cards nvoicepay Paymode-X supply chain financeFleetcor (FLT) closed on its acquisition of privately-held nvoicepay on April 1, 2019.

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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.

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.

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.

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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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.

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.

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

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.

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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SaaS Metrics for Enterprise-Driven B2B Networks (Bookings)

Software Platform Consulting

sales, finance, customer success, and supplier enablement). Enterprise Software Payments Pricing Supply Chain Finance bookingsSource: [link]. This is the third in my series on SaaS Metrics for Enterprise-Driven B2B Networks.

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.

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.

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.