In business, it’s essential to have specific benchmarks and measuring tools in place to keep the company on track. In retail and eCommerce environments, the most crucial medium-term metric is the Gross Merchandise Value.

It determines the health of business over a certain period. We’ve done an in-depth study of what it can do for growing marketplaces.

What is GMV?

Gross Merchandise Value (GMV) is the sum of all merchandise sold through customer-to-customer (C2C) marketplaces. It’s usually used in ecommerce trading to measure the health of the business. Total company sales are calculated over a specified time, typically quarterly or annually.

The calculations…

SaaS finance is an overwhelming subject for many founders. Wouldn’t it be easier to think of exciting software, develop it, and live on without thinking about funding?

Unfortunately, this fantasy world doesn’t exist, and all owners face harsh financial realities. One way is to try and learn as much as possible. If you do, you might even start enjoying it.

In today’s article, we’re touching upon the concepts of burn rate and runway, discussing how they relate, and why they’re essential for a growing startup.

What is Burn Rate?

If you’ve read our previous article about the SaaS burn rate, you’ll already be familiar…

Dealing with startup finance is a tough job for every founder. You spend money faster than you get it (if you’re lucky enough to obtain it at all). Bootstrapping is possible. However, most startups rely on outside financing. They also cultivate their ability to save money and survive as long as possible before the successful product hits the market.

While there are many unknowns, one thing is sure to happen: you’ll spend your initial funding in no time. Today, we explain the burn rate, managing expenses, and staying afloat.

What is Burn Rate?

It’s the amount of money you spend in your SaaS startup…

What Is R&D for SaaS?

Research and development (R&D) for SaaS has several manifestations:

  1. Inside the company, R&D is the department that develops new features and products. The team gathers information, analyzes it, and solves existing problems in various areas, like software, marketability, expansion, processes, etc.
  2. The accounting term covers the spendings that go under the R&D expenses on the income statement.
  3. In a broader sense, research and development is the process of idea-development within the company, which doesn’t necessarily need to be related to a specific product. R&D teams might have a task to pursue highly-innovative and even far-fetched projects.

Our article will cover…

What Are Marketplace Metrics?

Exploring the buying habits of consumers is a fascinating occupation. While the ‘old world’ faced many difficulties with understanding customers, internet marketplaces are an excellent environment for this activity.

With the development of internet-based marketplaces, recording customer behavior, following transactions, and building trust have become much more accessible. Marketplace metrics help behavioral economists and marketplace owners gather a large amount of data. They use the stats to understand customers and grow the business even more efficiently.

Why Is it Important?

Every business defines goals and KPIs in some shape or form, but they are nothing if you don’t track progress.

Here at SaaSHolic, we’ve…

The Definitive Guide for Retention Metrics
The Definitive Guide for Retention Metrics

In the growth era, many companies operate under the assumption that client acquisition rules over everything in the industry. Of course, closing sales deals is essential for any company, but getting too consumed in fast-growth tactics might also diminish your relationship with existing customers.

SaaS entrepreneurs know how high the customer acquisition cost (CAC) can climb, yet most companies continue chasing new clients. What if we told you that there’s a gentler, more mindful way to grow your business? You can avoid the chase by turning your attention from customer acquisition towards customer retention.

With a relatively low entrance bar…

What is Venture Debt?

Venture debt is a form of financing specifically designed to help startups and pre-profit, high-growth tech companies. It can be assimilated to complement equity financing or used as a stand-alone product. It’s commonly known as ‘risk capital,’ and companies that make use of it do so because they lack tangible assets to use as collateral.

This funding method gives organizations greater flexibility when growing their business and, if appropriately structured, is less costly than equity. The debt is usually structured over three to four years and requires annual or quarterly payments.

Venture debt is meant more for companies that are…

Owning a SaaS startup can be a very lucrative endeavor. However, as you’re building the software, chasing leads, and keeping up with customer service, you might be neglecting some aspects of your business (especially those that require hard skills).

Finance and accounting (along with legal issues) might just be the most neglected and misunderstood aspects of SaaS startups. Nevertheless, they’re business fundamentals that you simply can’t avoid.

We know how tricky SaaS bookkeeping can be. Even if you have knowledge and experience with accounting, SaaS startups face many specific issues. …

The tech scene in LatAm is on fire and the Brazil tech scene took the lead and in a couple of weeks doubled the number of companies with public tech companies. Will they arise as great public tech companies?

This week Nathan Latka spoke in a SaaStr conference online and told the public that he is paying close attention to the LatAm market You might be asking yourself why, right?

According to Nathan`s point of view, the tech industry in Latin America is rising to standards never seen before. And all that has a reason, few of them are: companies are getting more mature, customers are getting used to technology, the cost of capital is dropping and the continent has a lot of problems that can be solved with technology.

But how’s that related to what I`m going to…

Last Friday we wrote an update on a “plot twist” on the STONE/LINX acquisition, with TOTVS making an offer.

But, what we didn’t expect — was another big player moving on Linx. Well, we’ve seen Stone making an offer of R$6b, last week we saw TOTVS making a raise, pointing to the amount of R$6.1b mixing cash and stocks. Rede is a natural potential acquirer.

While Stone`s offer was on R$6b mostly on cash (90%), TOTVS offered R$6.1b in a mix of cash plus stock with a much higher stock potential upside on top of it. According to BTG Pactual…

Victor Maia

Brazil Community Manager @ Team GaryVee

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