SaaS best practices

Last week we met with a SaaS business that in our view is doing literally everything right.  Below some of my notes which I think any software executive will find helpful. Customer Success.  At this company, customer success reps are……

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Protecting founders from dilution

Valuation is more important than capital raised to preserve your ownership. To determine this, we looked at founder ownership relative to equity raised for 110 publicly traded tech companies. Our goal was to see if founders that raised less capital……

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VC may not be for you

A good friend of mine just exited the business he founded for $25mm. Since he built the business on so little outside investment, he owned 52% at exit and took home $13mm. This type of exit brings up an important……

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Tech company cash efficiency

Cash efficiency is as important as growth, especially when you’re a fast growing, cash burning startup with limited capital. One measure of cash efficiency is revenue/total capital invested. When you’re in early revenue the metric will look abysmal, but as……

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Capital raised by tech company

What’s the level of investment needed to build a tech company that goes public? The data and observations from 151 tech IPOs are below. Software businesses needed $137mm of equity. On median, publicly traded software companies raised $137mm through their Series……

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