Software as a Service (SaaS) is exploding, projected to become a $50.8B market by 2018.
There is a lot of good information out there, but these eight links are among the most useful, providing SaaS founders with some important insights they need to know:
1. The Math Behind SaaS Startup Valuation
Good formulas for both actual and projected Customer Lifetime Value and Customer Acquisition Cost.
Behind-the-scenes look at what it takes to grow a billion-dollar SaaS company from Neeraj Agrawal, general partner with Battery Ventures in Boston.
A round-up of 66 leading SaaS companies that have defined the industry, either with a realized exit of more than $500 million (either in the public markets or via an M&A transaction, as of June 30) and private companies valued at $1 billion or higher.
4. Chaotic Flow
Data-minded blog written to "share knowledge and opinions that will help executives at on demand software companies that create and deliver SaaS, PaaS and IaaS applications to critically analyze real-world, go-to-market strategies and tactics by applying sound business principles to the disruptive technologies that are reshaping our lives."
More data-driven performance insights than anywhere else. Results released yearly.
(While SaaS companies do use our Strategic Management & Planning Tool, we in mid-beta on a SaaS-specific add-on that includes direct comparisons for CLTV, ARR, CAC etc. Contact us if you'd like to learn more.)
6. Why So Many Software As A Service Companies Fall Into An Accounting Trap
Good perspective on spending wisely, including some “rules to live by.”
7. 11 Revenue Streams For SaaS Business
This quote sums it up: "SaaS by itself is not a profitable business model. SaaS only becomes profitable when coupled with a strategic revenue model.” The article then breaks down individual streams.
8. What are some pivotal moments that every successful SaaS company has?
An excellent reminder that starting a SaaS company is a long journey filled with lots of ups and downs, but one that can ultimately be very rewarding.
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