Observations, Analyses, Musings

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According to the IPO's of 31 SaaS companies

The median of tech co's at IPO is $265k

The 4 fatal flaws of our first zero

$265k is the median salary, but the best take $1 annually

45 out of 72 SaaS companies generate negative EBITDA

Public SaaS co's hold at least 4 years of cash

Net Retention of 99% is the median, but strive for 112%+

47 IPO's that were burning cash raised 5.3 years of burn

100% is near the median, but 125%+ is top 5

23% of SaaS company revenue comes from one-time/services

they generate $12.58 of lifetime revenue for every $1.00 of equity invested

Social Media, Marketplaces, Content Distribution, and SaaS had median EBITDA margins of 12%, 12%, 3%, and -8%

For Series A, every $500k of fresh capital will result in 3% to 7% dilution

SaaS revenue is great, but profitability is better

The median of 52 publicly traded tech companies is $288k, at exit

At a minimum, expect to spend 1/4th of revenue on ongoing development

We look at 47 publicly traded companies to prove it

Bluum.com wasn't the biggest, but now they're the winner

The best public companies reinvest profits

Raising half as much results in 121% more founder ownership

Take 24+ months if you can get it

Do it on day one and keep doing it in small increments as part of comp

If you're significnalty above 25% as a percent of revenue, you better be materially improving the product

Public SaaS companies have on median only $7mm of debt 

LTV/CAC is dead.  Content marketing, SEO, in-house PR are superior

We answer the question 'how much revenue should capital generate'

A rough analysis of cash equity needed to take a SaaS business public

MRR is great, but so is one-time revenue

A lack of capital in Canada forces companies there to build real businesses.

Key metrics and targets to keep in mind for using your cash to grow a business, not a bonfire.  

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