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……
Read MoreWe’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……
Read MoreSelling 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……
Read MoreThe general rule of thumb for spending in SaaS is 40/40/20. In other words, 40% of operating expense should be on R&D, 40% should be on sales and marketing, and 20% should be on G&A. 19 SaaS companies have gone……
Read MoreVC love recurring revenue and many VC won’t ascribe any value to non-recurring revenue streams. That said, do not forsake non-recurring revenue streams. If you do, you’re ignoring free financing and a way to make the product stickier. Non-recurring revenue……
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