Month: September 2021

Dear SaasCo: Financial Performance Part 2 – The Importance of Gross Margin

September 13, 2021

Dear SaasCo, VCs often look at revenues as a benchmark for valuation – we do this because (1) the companies we invest in are very early-stage and have no EBITDA and (2) because, in most software/technology businesses costs of sales…

Dear SaasCo: Financial Performance Part 1 – Revenue and Cash

September 7, 2021

Dear SaasCo At its most basic level measuring financial performance is the review of revenue, gross profit and income/loss before tax. For many start-ups busy with growing teams, building product, dealing with customers and planning for the future the analysis…