Insight certainty 3/5 debate potential 2/5

SaaS startups trade at 4x-6x revenue with investors taking 10-15 percent

Will Fraser · 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth · Oct 6, 2018 · at 15:22

Will Fraser, founder of SaaSquatch, outlines market fundraising benchmarks and typical dilution expectations with podcast host Nathan Latka.

0:00 / 0:13exact quote · 13.9s
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“We look at the basic economics out there today, you know, you would hear somewhere between four and optimistic six times on revenue, right? And you got to imagine that an investor is going to want to take no less than 10, but probably closer to 15% in that round.”

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More from Will Fraser

Insight
Product marketers lack the budgets of acquisition marketers
“What we just discovered, the reason we made that shift was because we sell primarily to product marketers and product marketers don't have that same acquisition budget as the acquisition marketers do.”
Will Fraser Oct 6, 2018 ▶ 4:01 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth
Disclosure
SaaSquatch ARPU reaches approximately $900 per month
“The average customer today is closer to 900 a month.”
Will Fraser Oct 6, 2018 ▶ 6:07 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth
Disclosure
SaaSquatch exceeds 100 percent YoY growth for two consecutive years
“So we've been seeing about a hundred percent year over year growth, a little greater than a hundred percent year over year growth for the last two years.”
Will Fraser Oct 6, 2018 ▶ 7:23 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth
Assertion Not checkable as stated
SaaSquatch achieves negative two percent annual net revenue churn
“So we have net negative MRR churn. Nathan Latka: How negative? Will Fraser: Part of how negative? Will Fraser: About two percent.”
Will Fraser Oct 6, 2018 ▶ 9:37 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth
Assertion Not checkable as stated
SaaSquatch maintains three to four percent annual gross revenue churn
“So gross revenue churn is pretty low. We look around like the four, three, four mark annually.”
Will Fraser Oct 6, 2018 ▶ 10:11 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth
Disclosure
SaaSquatch raised a couple million CAD in debt from Wesley Clover
“So they fund us with a couple million dollars Canadian, and they've you know, really, we like working with them because they're extremely founder friendly.”
Will Fraser Oct 6, 2018 ▶ 11:22 1169 From $40CPA Model to $900/mo SaaS, 100% yoy growth
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