Vaios Gkitsas’ Post

TCV Venture Partner Rob Gremley, who most recently served as the CEO of ETQ and led its transformation from a legacy software company to a modern SaaS company, gave his insights on: - Balancing growth and profitability - Prioritizing the right growth initiatives - Building an effective go-to-market strategy - Meaningful growth tailwinds within enterprise software   Check out the key takeaways here: https://lnkd.in/gY7Y25Mj #SaaS #Growth

😭 At least 70% of #acquisitions fail 😭 Among the top reasons for failed M&A is a lack of cultural fit and a poorly run integration. Smaller SaaS companies often lack the resources and expertise to execute a post-merger integration, but that does not mean it can't be done well. In this episode of In/organic, I was joined by Mohammed Baloch, Head of Integrations at Gainsight, a #SaaS company backed by Vista Equity Partners. In this episode, we explore the key elements of a well run integration process and how to help where its needed in the right way. We also talk about the traits of walk-on players that can help lead #integration success. Give it a listen and a share 😁 https://lnkd.in/evWQvyKh

The SEG SaaS Index™ brings SEG’s research to life in an interactive and digestible way. It serves as a tool to provide high-quality insights on: - Stock market indices - Daily median EV/TTM Revenue multiple for companies - Key metrics for all 120+ publicly traded SaaS companies that comprise the Index - Median EV/TTM Revenue via company size - Median EV/TTM Revenue multiple by product category ...all in real time. Visit the SEG SaaS Index™ here: https://lnkd.in/gMZq9Vq7 #mna #saasmetrics #exitstrategy

Most Micro SaaS Founders have no idea how much their business is worth. Valuation is a complex topic with a wide range of methods and inputs... We conduct Micro SaaS valuations and identify growth levers on a daily basis, here are our most important metrics / attributes: Strong metrics we look at: > MoM user retention: >95% > Rule of X (2*YoY Growth + Profit Margin): >.40 > Onboarding: User Led > MRR: $40k to $80k What does this look like in practic? It's a long answer, but here is an acquisition case study (aka Deal Teardown) of software suite for wedding venues with $98k ARR: 💬 https://shorturl.at/xTUY3 If you'd like to discuss your metrics, how they impact valuation, and identify a few optimization strategies / tactics - shoot me a DM, always eager to jam 🙂 #MicroSaaS #valuation #exit #acquisiton

Rule of 40 is a long-standing metric used by investors to determine the health and enterprise value of a SaaS company, that is misunderstood far too often - so CAC and Growth dedicated an episode to how the Rule of 40 is calculated and how it impacts company valuations including: • Calculation formula • The best variable for the operating profitability component • Balance of growth and profitability yielding the highest valuation multiples • When does the Rule of 40 become valuable versus a vanity metric If you are a SaaS operator or a public SaaS company investor, this episode covers an important topic and is a great listen! Listen now on https://lnkd.in/gVchjyGw #SaaSTalk #Ruleof40

Interesting article in PitchBook: Early-stage SaaS boasts best expected exit success rate for VCs Once a SaaS company can devote the fixed costs to get a successful product in market, they usually enjoy very high margins relative to other sectors. Hopefully @Sparket's early investors and equity holders are rewarded by this trend 😎 https://lnkd.in/eTKCpbmg

Let's talk business essentials. Beyond cashflow, what adds value? It's the elusive aspects - the business's goodwill, culture, and recurring revenue. Think about it - tech companies with substantial yearly recurring revenue vs commodity businesses based on price. Guess who's likely to have a higher value? That's why SaaS companies are so highly valued - recurring revenue is key. #BusinessBasics #ValueBeyondCashflow #RecurringRevenue #SaaSValue

Unlock growth for your SaaS business in 2024! 📈 Download 'A Complete Guide to Raising Capital for SaaS Businesses' by Scrubbed. Elevate your pitch with expert strategies in financial modeling and investor relations. Fuel innovation, attract talent, and ensure resilience in a competitive market. ✨ https://hubs.li/Q02gKzlK0 #SaaS #UnlockGrowth #RaisingCapital #SaaSbusiness #financialmodeling

Private #SaaS company revenue multiples are still nearly 30% below 2021 levels. Many SaaS CEOs are considering capital solutions to avoid a down round, like structured equity. Swipe to learn more ➡ We’ll continue to shine a spotlight 🔦 on bespoke financing solutions this year. Stay tuned for more on: - Senior debt - Subordinated debt - 100% PIK notes - Convertible notes - Convertible preferred (with or without structure) - Secondary equity opportunities #structuredequity #growthcapital #saasgrowth