How to value your SaaS company

If you read my blog regularly you know I love (LOVE) metrics.

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. It’s chocked full of them – I’d highly recommend your reading the full report. But if you’re too busy for that, below are some of the key take-aways. I’ve added some color commentary of my own that’s more relevant to earlier stage companies as well.

The methodology here was great. They took the 92 public SaaS companies and analyzed their key operating metrics. Beyond that, they actually went back in time and looked at the earlier stage periods for these companies so we can track how some of the world’s best SaaS companies performed at revenue levels more akin to the typical Series B business.

The “Rule of 40” is important. The rule of

Continue reading "How to value your SaaS company"

How to value your SaaS company

If you read my blog regularly you know I love (LOVE) metrics.

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. It’s chocked full of them – I’d highly recommend your reading the full report. But if you’re too busy for that, below are some of the key take-aways. I’ve added color commentary of my own that’s more relevant to earlier stage companies as well.

The methodology here was great. They took the 92 public SaaS companies and analyzed their key operating metrics. Beyond that, they actually went back in time and looked at the earlier stage periods for these companies so we can track how some of the world’s best SaaS companies performed at revenue levels more akin to a typical Series B business.

The “Rule of 40” is important. The rule of 40

Continue reading "How to value your SaaS company"

Drowning

I’m struggling and I’ve avoided talking about it.

I’m used to being busy and I’ve often said that what I like most about my job is the constant phase shifting – it fits my personality and, frankly, my attention span. I’m used to a certain amount of chaos and uncertainty. But lately I’ve been feeling overwhelmed by it. I’m not sure if it’s the constant barrage of news from a president I can’t stand and who I think is ruining our country. Or the friend who was just diagnosed with advanced metastatic stage 4 pancreatic cancer. Or the other friend who was diagnosed with stomach cancer. Or the crap that’s going on in tech and venture that makes my stomach turn. Or just the day to day busy life of a family of 5 with school, sports and everything in between. I feel distracted. I think of Matt and Reggie a

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Humility Over Pride

[a version of this was originally posted at Unreasonable.is. i was thinking about it today and wanted to repost it here with some additional commentary. in light of some of what we’re reading about in the tech press it would seem that a remind about this is due]

This advice would seem obvious, if only more people followed it. I was attending a board meeting recently where a company put up the following as one of its core values: “Humility over pride” As I think about how often I interact with people who are so ego-centric and hubris; as I consider how seldom these people show any self-awareness or emotional intelligence; and as I reflect on how universally unpleasant it is to work with people who put themselves first, it reinforces how critically important this principal is.