Fresh Insights

Analyses, Musings & Observations

1 in 3 wont be CEO at exit

When you finally exit or IPO, will you be the CEO or will someone else be running the company? It’s a great question so we dug into 135 tech IPO’s to figure it out. Specifically, we looked at the CEO at the time of IPO/exit and compared it to the list of key founders to…
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SaaS valuations higher than ever

Despite the current tumult, SaaS comps are showing unbelievable strength: of the 83 SaaS companies we follow, the average public SaaS business is trading at 17.9x revenue while the median is 12.2x. Interestingly, the gap between the average and median is still large (5.7x), meaning more attractive SaaS companies are being rewarded with big premiums….
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The right level of dev spend

We looked at the R&D spend of tech companies at IPO and in years prior to answer the question ‘what is the right level of spend on R&D’. The data is below and varies by industry.   SaaS spend is consistently a quarter of revenue. Leading up to the IPO, SaaS companies spent on median…
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The makeup of SaaS headcount

What percent of SaaS employees should be in R&D, or sales & marketing, or G&A? It’s a question that was recently posed to us, so we dove into the prospectus’ of 31 large and recognizable SaaS companies to find the data. Observations are below.   Median headcount. The median headcount of the dataset was 867…
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Strategic investors can hurt you

Often we hear founders get excited about strategic investors — corporations making venture investments — because the founders think the strategic investor will assist with the product roadmap, become a customer, intro the company to new customers, add credibility, and potentially acquire the company at some point. However, strategic investors have not been a benefit to our companies. Below…
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One way to grow in SaaS: M&A

Today Unity Software goes public. One very interesting graphic in their prospectus is below, which shows their journey to becoming a public company. It’s been a long road for Unity (founded 2004) as it is for most every successful company, but one thing that stands out is the number of acquisitions they’ve made along the…
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Using LinkedIn for prospecting

LinkedIn was born as great way to find your next job. It has evolved into one of the best Social Prospecting tools for finding your next customer.  We recently reviewed “The Fundamentals of Linkedin” which is a primer on social prospecting for sales reps.  It’s by The Bridge Group (bridgegroupinc.com), a SaaS sales consulting firm…
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Recruiting great sales talent

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard.  They release outstanding sales data which can be found at their site, bridgegroupinc.com.  We recently reviewed their “Sales Hiring Hourglass” which is primer on hiring B2B sales talent.  It’s well worth the read, and below I summarize some of…
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How to approach B2B buyers

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard.  They release outstanding sales data which can be found at their site, bridgegroupinc.com.  We recently reviewed their “Ultimate Sales Engagement Guide” which is a survey of how modern B2B buyers like to buy.  56% of the respondents in the…
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CRO data for b2b SaaS

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard. They release outstanding sales data which can be found at their site, bridgegroupinc.com. We recently reviewed their “CRO Research Project” which compiles data from 145 senior sales executives at b2b SaaS companies. It’s well worth the read, and below…
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