Fresh Insights

Analyses, Musings & Observations

Account executive and SDR compensation data

If you’re hiring AE’s and SDR’s for your SaaS co, CompGauge.com puts out very nice data on average compensation for these roles. Below we summarize the latest data. AE’s. The average AE is pulling $167k all-in. The comp was made up with $84k salary, $76k commission, and $8k of signing bonus and combined. The 95th…
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Learnings from Turo’s IPO

Turo is about to go public. Below are the most interesting pieces of their public filing. The punchline: customer feedback drives the product roadmap, covid was crushing but the rebound has been strong, the host is the real customer and partner, and Turo’s P2P platform may be the ultimate marketplace. What they do. “Turo is…
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Measuring SaaS cash efficiency

Cash efficiency is one of the most important metrics in SaaS. Since the revenue at SaaS companies is largely recurring, we measure it as ARR / net investment. Formulaically it’s revenue / [equity + debt — cash]. We did an analysis looking at cash efficiency of the 73 most recent publicly traded SaaS companies at the time…
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What SaaS companies raised to get to IPO

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,…
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The number of rounds to get to IPO

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…
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Push for 3 year SaaS contracts

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…
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SaaS acquisition multiples in 2021

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…
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Tech and SaaS multiples in Q4

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…
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SaaS comps for Q4 showing cracks

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…
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The best source of SaaS growth – current customers

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…
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