We looked at the equity and debt raised as well as remaining cash of the past 73 SaaS IPOs to determine how much net capital it took them to get to IPO. According to that data, it takes $301mm on median and $643mm on average. The average is skewed by Mcafee, Palantir, Snowflake, Dynatrace, Powerschool,…
Read More
How many rounds has it taken the latest crop of tech companies to go public? Below is the data from the last 49 SaaS IPOs. Software. On median, publicly traded software companies raised through their Series E before going public. Note that Palantir went all the way through their Series K. Other companies like Datto…
Read More
If you’re a SaaS business selling to enterprise, chances are good you’re selling 1 year contracts, paid up front, with auto-renewal subject to a 60 day out and automatic annual price escalators. That’s a fine, traditional contract structure in SaaS, but more and more we’re seeing companies open with longer contract terms. For instance, MeridianLink…
Read More
Every quarter we publish public SaaS multiples (that data is further down this blog). While we lean on public multiples heavily to understand valuation trends for venture investing, there are acquisitions of public companies that also can give us a feel for where multiples are. Below is the data for all public SaaS company acquisitions…
Read More
Below are revenue multiples for publicly traded consumer tech companies (B2C). Industries and therefore multiples vary widely. Commentary is below. If you’re looking for data on SaaS multiples, keep scrolling. Social media is back to 2020 levels. Multiples rose steadily through 2020 peaking at 22.7x on median in Q1 2021. Q4 is showing 9.1x. YOY…
Read More
SaaS comps continue to be strong, but fell from last quarter. Of the 126 SaaS companies we follow, the average public SaaS business is trading at 17.9x revenue while the median is 12.2x. In Q3, the average was 20.0x. The gap between the average and median is 5.7x, meaning premium SaaS companies are getting outlier…
Read More
One of the key drivers of SaaS growth should always be to upsell existing customers with new features/products and greater value-add. Blend, which went public in 2021, illustrates this well in their S1. Their software drives transaction and loan volumes for banks, and they ended 2020 with $96mm of revenue, up from $51mm the year…
Read More
If you’re depending on your customer base to add users as a way to drive upsells, you’re doing it wrong. Here’s why: Charge based on value, not seats. You shouldn’t be charging the customer based on the number of seats/users they have on your platform. You should be charging based on the value and ROI…
Read More
Bill.com, SumoLogic, and Confluent are public SaaS companies with excellent customer performance. In their prospectus’, each of these companies was generous enough to share beautiful contribution margin data. Specifically, Bill.com shows the contribution margin of customers acquired in 2017, and SumoLogic and Confluent do it for customers acquired in 2018. It’s a very nice illustration…
Read More
Bird (the scooter company) went public in October via a SPAC. We just got around to reviewing their prospectus, and it’s a doozy. Learnings are below. What they do. “In partnership with cities, Bird’s proprietary technology and operations are revolutionizing the existing transportation paradigm by making lightweight electric vehicles readily available to rent or own…
Read More