In the previous post we discussed how the public market values SaaS companies and which metrics you should measure. Today I want to discuss what happens behind the scenes when investors determine the value of an early stage startup. The truth is that determining the value of a startup is much more art than science. The reason is that as investors we… Continue reading Why valuations don’t reflect real value
Now that we’ve talked about why SaaS is a beautiful business model, I’d like to give some guidance and tips to help do it right. Of course there is no “one size fits all” answer to how to do SaaS, but there are many things which are common across companies and many things we see that… Continue reading Grow or die
SaaS is one of the most beautiful business models out there. At BVP, we have been extremely bullish on it and have probably one of the largest portfolios of SaaS companies out there. The benefit of this model also hasn’t escaped public investors which can be seen by the BVP cloud index, which tracks 38 public Cloud Computing Companies. The average company… Continue reading So you want to kick SaaS?
One of the “must have” slides in a B2B startup deck is the financial projections model. There is one untold universal truth about these models- they are always wrong (the second thing in common for this part of the presentation is that the CEO always starts it with “we have taken a conservative approach…”) Now, if everyone knows that the model is wrong-… Continue reading You don’t need a banker to build a financial model
Israelis are known to be direct, so why not sell that way? One of the first things I noticed since moving back to Israel is that many of the early stage startups we meet have a similar GTM strategy: Sell via channels or OEMs (in addition to some direct sales). This is one of the more noticeable differences from companies we… Continue reading Be direct, Sell direct