Valuation

Cisco just announced it is acquiring CloudLock, an Israeli Cloud security startup, for $293M. This is a great outcome for the CloudLock team and the investors. Bessemer first invested in CloudLock in January 2014 when the space it was operating was…

As discussed earlier the two most important metrics of a SaaS company are growth rate and retention rate. Wall Street understands this and considers retention as the second most important factor in valuing a SaaS company (first is growth rate). I would take it even further and argue…

In the previous post we discussed how the public market values SaaS companies and which metrics you should measure. Today I want to discuss what happens behind the scenes when investors determine the value of an early stage startup.

Now that we’ve talked about why SaaS is a beautiful business model, I’d like to give some guidance and tips to help do it right. Of course there is no “one size fits all” answer to how to do SaaS, but there are many things which are common across companies and many things we see that seem to work.