Article | February 14, 2019

4 Key Takeaways From The Modern SaaS Finance Summit

Source: Sage Intacct, Inc.

By David Appel

Pragmatic Advice For Financing The Growth Of A Software Business

“I have a board meeting next week and this event is materially changing how I think about and how I am going to present on the model and the direction of the business.” 

This was a quote from a successful SaaS CFO that joined us for the first of its kind Modern SaaS Finance Summit. The summit was held at the same time as SaaStr in the middle of Silicon Valley on February 8, hosted by Sage Intacct.  CFOs, Controllers, investors, and investment bankers all came together to build a powerful community focused on how to grow a SaaS company to $100M. Attendees not only learned from leading investors and successful peers, they also sat with and learned from peers with similar stage companies and billing models, going through similar issues as they grow.

Here are four takeaways from the event. 

1.Every round of financing requires you to prove something new before you proceed to the next round. Aligning and simplifying your measures and leading indicators drives consistency across the team to achieve your objective. 

  • Seed – Prove Product/Market Fit – Get 10 Ecstatic Customer
  • Series A – Prove your Revenue Model – Create great Unit Economics
  • Series B – Prove your Net Renewal Model – Scale Cash Flow
  • Series C-F – Grow to $100M in Gross Profit – Manage Capital Consumption
  • Sale or IPO – Expand Product Line, Go Global, and/or Make Acquisitions – Build a Predictable Machine