Investors love the scalability of software as a service (SaaS) companies, in particular when they’ve established a predictable, revenue-generating audience that’s measured and adjusted on a granular level. Mark Macleod, General Partner of Real Ventures (Canada’s largest seed venture fund) offered his thoughts on what investors look for and what startups should constantly look to fine-tune. Here’s a synopsis, followed by his full presentation.
Here’s a video of Mark’s SaaS discussion and presentation from our Best Practices series.
“Getting your pricing and metrics right is critical for any start-up, but doubly so for a recurring-revenue business. In this session, we’ll explore key customer metrics for new ventures, including acquisition, activation, conversion, churn and referrals. We’ll look at pricing in general and freemium in particular. Finally, we’ll examine valuations for software-as-a-service (SaaS) companies and how they compare with companies using traditional software license models.”
Here’s Mark’s slide presentation.