The Magic of a $5 Million SaaS Run Rate

After Defining a Successful Business several years ago for a Software-as-a-Service (SaaS) entrepreneur, the logical question is “what’s the next revenue milestone for a SaaS company after initial success has been achieved?” Things really start getting interesting once a startup hits the magic $5 million run rate mark. Here are a few reasons why $5…

SalesLoft and Sales Technologies

Last week Urvaksh broke the news that Atlanta tech-legend Tom Noonan had invested $800,000 in SalesLoft (Disclosure: I’m an investor in SalesLoft). Tom is best known for being the co-founder and CEO of Internet Security Systems from start through exit to IBM for $1.5 billion a decade ago. Now, Tom is investing more heavily in the…

Annual Run Rate and Size of Funding Round

While it’s rare that Yik Yak was able to raise a large Series A round just seven months after launching (see WSJ article), there is a strong correlation between the startup’s revenue run rate and raising money. Too often startups, especially B2B Software-as-a-Service (SaaS) startups, go out looking to raise a large sum of money and don’t…

Recent Zendesk IPO and More Thoughts

After all the talk of Software-as-a-Service companies losing some luster, Zendesk had a successful IPO last week rising 49%. Now, Zendesk has a market cap of over $1 billion according to Google Finance (NYSE:ZEN). Back in April, when the Zendesk S-1 IPO filing was released and covered here, many of the basics were covered like financial…