Public SaaS Company Valuations Q1 2015

Once a year I like to take an inventory of the public Software-as-a-Service (SaaS) companies regarding their valuation, revenues, and employee count. On the public equities side, I don’t pick individual stocks (I’m a fan of Vanguard Index Funds), so I only hear about things when a stock makes a big swing. Here’s a snapshot of public…

Rule of 40% for SaaS Companies

Brad Feld wrote a great piece last month titled The Rule of 40% for a Healthy SaaS Company. The idea is that growth plus profitability should be 40% or greater once at scale (double digit millions of revenue). As an example, if a SaaS company grew 100% year-over-year, and had negative margins of 60% (burning…

16 Signs You’re an Entrepreneur

Last month I was talking to an entrepreneur that was going through a really difficult spell. No matter how hard he tried, it seemed like everything went wrong. After we talked about a number of challenges, I stopped, looked up, and said, “those are all signs you’re an entrepreneur.” Here are 16 signs you’re an entrepreneur: One day you’re…

Time is the Great Equalizer

Recently I was talking to an entrepreneur about competitors and market strategies. Then, he said something that stuck with me: time is the great equalizer. That is, all of us only have 24 hours in the day. Competitors don’t get more time. Markets don’t get more time. Yes, some firms have more resources, but they…

When a Product Works but a Business Doesn’t

An entrepreneur emailed me recently asking for advice about his Software-as-a-Service (SaaS) business. After several years of working on it, and signing up hundreds of customers paying a small amount of money, it became clear that it wasn’t a viable business. That is, by all accounts, product-market fit was reached but no matter how hard…