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12.27.2019

The state of software M&A

I met with a banker yesterday and got his take on the state of the software M&A market. The banker’s observations on the state of the SaaS M&A market are as follows: Private equity is leading the way. Most deals this……

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12.23.2019

Average years from founding to exit

We looked at how long it took 167 publicly traded tech companies to exit. Specifically, we used their S1’s — a securities filing a company makes before IPO — to find out the year each company was founded and compared it to the last……

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12.19.2019

Revenue per head in SaaS

Two metrics we use to compare software businesses are revenue per employee and operating expense (opex) per employee. In our view it’s a great measure of operational efficiency. What is a reasonable amount of rev/head and opex/head in SaaS? The……

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12.17.2019

Tech CEO salaries

We’ve seen a wide range of CEO salaries in our portfolio, from as low as $35k annually to as much as $325k (plus bonus). While there is no dataset explicitly outlining salary levels at early stage companies, we can use……

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12.16.2019

Selling code from a dead investment

Selling code from a dead investment In 2017, we had a death in the portfolio. Once all the employees left, the only remaining assets were some patents, servers, domains, and a lot of code. Eventually we managed to sell that……

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