From the SaaStr 2015 Annual Conference: you ever wanted to learn how to raise venture capital as a Software-as-a-Service (SaaS) business, read the secrets in this presentation. In this overview, we cover SaaS revenue growth and how it has accelerated from 2007 to 2014.Then we look at why we pass on SaaS companies even when they are growing top-line revenue (hint: we care more about gross churn and especially negative net churn). And finally, we introduce a new metric - the SaaS quick ratio - which can help you understand how an investor benchmarks the amount of new sales and expansion revenue gained in a month relative to cancellation and contraction revenue lost in the same month. In the appendix, we show you a sample company to illustrate how to structure your data, build your graphs, and present your data to investors.
Mamoon Hamid is a General Partner at The Social+Capital Partnership, a VC firm based in Palo Alto, CA. Mamoon has invested in iconic SaaS companies such as Box, Yammer, Slack, Greenhouse, Intercom, Castlight Health, Act-on Software, and a dozen others.