Why VCs Love SaaS Businesses
A couple weeks ago, I shared a chart with the stock performance of recent tech IPOs along with this tweet:
there are two dominant startup models in tech today. (1) You can make money selling software. (2) You can lose money selling anything else.
Lots of people wrote back, and one person pointed out that a better metric to look at (than stock price) would be revenue vs. capital raised. He also pointed me to this fantastic TechCrunch article with the data, so here is a closer look at the efficiency of different businesses models, thanks to Boris!