Debt Capital: “If I take on debt now, will it have a negative impact on my ability to raise venture capital later?” This is a common and important question we get from SaaS Founders who are considering adding debt to their capital structure. The short answer is: NO. Taking on debt now will not negatively…
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In our recent webinar, Changes Across the SaaS Financing Landscape, conducted in partnership with SaaSOptics, we shared some insights for SaaS Founders/Execs considering bringing on institutional financing. Here’s what we talked about: Equity and debt capital – what each is and the differences between the two Venture debt – what it is, how it’s evolved,…
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What Every SaaS Founder Needs to Know About Their Runway: The longest commercial service runway in the world is in the mountains of Tibet at 18,045 feet. That’s more than twice as long as some commercial runway lengths, which are typically between 8,000 feet and 13,000 feet. The exact length required for a successful aircraft…
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A Look at SaaS Accounting: For bootstrapped SaaS startups, those newly flush with venture capital, and every company in between, SaaS accounting can be full of confusion and challenges. Before the rise of the subscription-based model, revenue was generally projected based on previous sales. So, if Company A sold 10,000 sealed boxes of a specific…
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What is a Market Penetration Strategy: The SaaS market is booming with global market is anticipated to reach $220.21 billion by 2022, growing at a rate of 30% per year. Salesforce (which trails only Microsoft in market share) reported $3.74 billion for Q1 2020, but the field isn’t limited to the big-name players. According to 99firms, in addition to publicly traded companies,…
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5 Pitfalls for Founders to Avoid When Raising Money: I’ve spent basically my whole career since 2004 in and around other people’s money, starting in investment banking and eventually getting out of that to start and run my own companies, often raising money as part of that. I was employee #1 at one company, founder…
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User Retention 101: When you run a SaaS company, you should expect to experience some customer turnover or churn. Even some of the major SaaS companies experience churn. In fact, SaaS giant Buffer recently self-reported an annual churn of 46%. So for every 100 customers, Buffer gained over the course of a year, 46 of them left…
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The Ever-Evolving SaaS: Mailchimp has long been lauded for doing two things that startups rarely do: being highly-profitable and bootstrapping its growth without any investor funds. The unique way in which the company formed and has operated certainly stands out among other SaaS businesses, with Forbes calling it “an unlikely tech unicorn” and the New…
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