Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com
SoOnly a few allow extremely high burn. Only 2 companies have a revenue to burn ratio below -1x. Snowflake and Qualtrics are the violators here, for instance Snowflake at IPO had operating loss of -$358mm versus revenue of $264mm. It’s a fraught road to allow a business to generate such a high level of burn relative to revenue, and as you can see only 2 out of 41 SaaS companies that went public in the past few years have pulled it off.
Enjoyed this post?
Share it using the links below.