Before starting our incredible journey of learning a SaaS due diligence process, we want you to know some fascinating facts about the SaaS industry. We sincerely hope you’ll be shocked after reading these stats. Slack current worth is $5 billion, Salesforce market cap is $100 billion, and LinkedIn net worth is $26 billion. The same … Read more
The churn rate is an essential metric to track during the due diligence process. To successfully acquire a SaaS Company, we need to go beyond just customer churn and loyalty metrics to identify underlying factors that influence customer lifetime value (CLTV). Although we only discuss the churn rate in this article, you should not limit … Read more
If you are a SaaS business, then you must read this article for the following reasons: What is SaaS Churn Rate? How to calculate SaaS Churn Rate? Why is there a need for your business to calculate this financial metric? Software-as-a-Service (SaaS) was launched to overcome the challenge of scalability that the traditional software licensing … Read more
So you have created a successful SaaS Company capable of generating recurring revenue for the business owners. Now you have decided to sell your SaaS Company or raise money to execute your aggressive expansion plans. In this article, we’ll discuss how to prepare for preliminary SaaS due diligence while dealing with a VC firm … Read more
If you are running a SaaS Company, you need appropriate accounting software to streamline your accounting task. Even though tracking account of your business is simple if you have just a few clients, as your business flourishes, it becomes practically impossible for the company to manage various income streams without using accounting software accurately. This … Read more
As the founder and owner of a SaaS company, you might not want to spend time and resources on SaaS bookkeeping. However, if you and your team are going to raise money to execute aggressive expansion plans, you have to maintain accurate business books. By developing a robust SaaS bookkeeping system at every early stage … Read more
Before we start discussing the method of filing SaaS sales tax returns, we would like to address the most commonly-asked questions of the SaaS entrepreneurs “Is the SaaS taxable?” SaaS Companies serve their customer both domestically and globally. SaaS business is growing at a dizzying pace and will likely achieve a 21.2% CAGR by the … Read more
Suppose a SaaS business has a considerably low churn rate and earns millions of dollars annual revenue. In that case, they still want to explore alternative SaaS revenue models to diversify their income sources. If you are a SaaS entrepreneur looking to diversify your revenue stream, you have come to the right place. In this … Read more
SaaS Company valuation is a daunting task for VC firms, angel investors, and asset management companies. For this reason, they need a correct valuation model in place to evaluate the Company’s worth. They would only be able to raise capital to finance their growth and expansion plans. SaaS companies’ importance for the country’s economy can … Read more
Studies suggest the SaaS market will likely reach $436.9 billion by the end of 2025. It is evident from this statistic SaaS is a fast-growing and evolving industry. With the unprecedented growth of the SaaS industry, many VC firms are increasingly acquiring SaaS businesses. For this reason, we have decided to nail down all the metrics … Read more