The Value of Growth for SaaS Companies

I received a report from SaaS Capital titled “Leaders and Laggards: SaaS Growth and the Cost of Capital”. The subject of the report is how the public markets value a high growth SaaS company (their definition of high growth is >25% YoY).

The report states, “13 public SaaS companies tracked by Pacific Crest Securities have increased in value 40% since the beginning of 2008. During that same period, the S&P index has yet to return to its pre-recession value.”Continue Reading …

Managing Hyper Growth So “The Wheels Don’t Come Off”

I was reading the Wall Street Journal this past Saturday and came across an article on page B3 regarding GroupOn’s revenue growth from 2009 to 2010.   For anyone who has been asleep for the past year, GroupOn is a “daily deals” website offering online discount coupons for primarily local goods/services.

According to the article, from $33M in 2009, GroupOn’s revenue virtually exploded in 2010 to $750M. From an employee base of 120 in 30 cities in 2009, the company now has 4,000 employees across 565 cities. Holy cow!Continue Reading …

For 2011, I Gave My Blog a CrowdSourced Facelift — Well, Sort Of…

So, you may have noticed the new look for my blog and want to know, “Why the change?”

When I originally started this blog, I did it as an experiment; I didn’t give a lot of thought about the long-term breadth of topics I wanted to cover beyond “Software as a Service” nor the blog’s overall positioning. I thought that if it garnered a few followers I would circle back and consider its “look and feel” and branding.Continue Reading …

Did Salesforce Just Announce Support for Client/Server Computing?

I was able to attend Dreamforce on Tuesday in SF this week and hear Marc Benioff’s keynote address – although I had to do it from an overflow room since the main room was packed beyond capacity. Tremendous showing especially considering the fact that we’re supposed to be in an economically depressed climate. Continue Reading …

The Software Colonoscopy

Recently, a large, well-known company in the computer software industry approached a small technology company to gauge its level of interest in being acquired at a nice multiple. The management team and investors quickly reached a decision to accept the large company’s offer and due diligence ensued.

…and that is when things quickly went awry.Continue Reading …