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07.30.2020

R&D spend at SaaS companies

Building out, maintaining, and upgrading a technology stack requires a constant commitment to developers and engineers, so what is an appropriate level of development or R&D expense for a successful SaaS business? We looked at 90 publicly traded SaaS businesses……

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07.28.2020

Measuring cash efficiency in tech

Cash efficiency is as important as growth, especially when you’re a fast growing, cash burning startup with limited capital. One measure of cash efficiency is revenue/total capital invested. When you’re in early revenue the metric will look abysmal, but as……

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07.23.2020

Capital raised prior to exit in tech

What’s the level of investment needed to build a tech company that goes public? The data and observations from 161 tech IPOs are below. Software businesses needed $135mm of equity. On median, publicly traded software companies raised $135mm through their……

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07.21.2020

How long will it take to exit

How many years will it take you to exit? 10 years is the generic answer, but that’s wrong.  The data says depending on what industry you’re in, it might take as long as 11 years (hardware) or as few as……

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07.16.2020

When you hate your VC

This happens. Occasionally you and your investors/VC won’t see eye to eye or worse yet, you’re sideways with your VC and the relationship is acrimonious or hostile. While I’ve never had a hostile relationship with a founder, certainly there are times where……

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