SlideShare a Scribd company logo
Funding Saas Companies “ I will never again invest in a company with a traditional software licensing model”
Why do investors like software companies? + Capital efficiency + Lock-in effect + High profitability  = High Valuations
The Saas paradox  ,[object Object],[object Object],[object Object]
Traditional   Vs.   Saas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Will Price, Hummer Winblad “The economics of Saas”
Funding gap: costs Source: Matt Hammerman “It costs more to be a Saas company” Go to Market  Functional Testing Reliability Testing Idea creation Engineering & Development Saas Perpetual license
Funding gap: revenues
The January 1 st   QOTD ,[object Object],[object Object],[object Object]
The January 1 st   QOTD ,[object Object],[object Object]
It’s all about predictability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The switch to Saas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]

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Financing Saas Companies

  • 1. Funding Saas Companies “ I will never again invest in a company with a traditional software licensing model”
  • 2. Why do investors like software companies? + Capital efficiency + Lock-in effect + High profitability = High Valuations
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  • 5. Funding gap: costs Source: Matt Hammerman “It costs more to be a Saas company” Go to Market Functional Testing Reliability Testing Idea creation Engineering & Development Saas Perpetual license
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