Emergence Capital的动态

Interesting drop in VC funding over the last few years.

Maybe we've created a SaaS doom loop? Or 2. 1. VC investment in SaaS has fallen off a cliff - we went from $62B in 2022 to $14B in 2023 according to Pitchbook. Which means we have less capital to fund customer acquisition. Which means growth slows. Which spooks investors (public and then private) who want to see CAC reductions, but also fundamentally view SaaS as a growth investment. Which means they invest less capital. And so on, the cycle continues... 2. Early/mid stage SaaS companies like to sell to other SaaS companies - it's one of the oldest tricks in the SaaS playbook. But because VCs are investing less in SaaS startups, we now have fewer, well funded target accounts. Which makes it harder to get to our short/mid term ARR targets. Which means VCs are less likely to invest in SaaS startups. And so on... Not as big of a deal as doom loop number 1, but still a factor. BTW, I don't think these doom loops are the primary causes of our now 2.5 year downturn. I just think that we don't pay enough attention to how incestuous VC/SaaS dynamics impact our business. Also, I just like the term "doom loop". I also don't think it's unhealthy. The market has spoken and they want us to figure out how to grow efficiently. Until we do that, the downturn will continue (or "the beatings will continue until CAC improves"). So what gets us out of this? Right now, all bets are on AI, but if you're expecting a near term recovery, I wouldn't bet on it. I suspect the AI story is one that will be told over years, not quarters.

?? Ever wondered how VCs really evaluate your SaaS financial models? I just published my perspective on SaaS financial model evaluation - a must-read for founders and operators looking to raise capital or improve their financial forecasting. Key insights include: *What makes a financial model truly defensible *Critical metrics VCs scrutinize (beyond the obvious) * Common red flags that could hurt your valuation * The truth about CAC, LTV, and profit margins that many founders miss Whether you're preparing for your next funding round or strengthening your financial outlook, this teardown reveals what investors actually look for behind the spreadsheets. Read the full article to get an insider's perspective on building financial models that withstand investor scrutiny. #SaaS #Startups #VentureCapital #FinancialModeling #StartupFinance https://bit.ly/3Z5rzM6

I wanted to highlight PitchBook's recent analysis that predicts SaaS companies will outperform all other venture investment categories.?Good news for SaaS founders and their investors.??Some great data and insights!?Feel free to reach out if you want to discuss our latest experiences with SaaS valuations.

Exciting news! My tech startup - Cashflowy.ai- is now in the Production Demo phase, and we'll be onboarding our beta users in a couple of weeks. ?? We're revolutionizing bookkeeping and invoicing for small businesses. Meet my partner Niraj - Cashflowy's CTO. He's MIT-trained and built software for Deloitte, Goldman Sachs, and Virgin Hotels, among others. He's won awards for the AI tech he's built, and now he's using his ninja skills to help build Cashflowy.ai. Jump on the waitlist now at: Cashflowy.ai And come follow the behind-the-scenes journey Cashflowy.ai . . . #aitools? #bookkeepingai #automatedbookkeeping #saas #tech #businessnews

?? Mastering SaaS Revenue Recognition! ?? ?? Scott Orn, CFA of Kruze Consulting unveils the must-knows for SaaS startups on revenue recognition for annual contracts. If you're billing and collecting upfront, this one's for you! Accrual GAAP-based accounting isn't just a best practice—it's your financial report's backbone. Scott explains why recognizing revenue monthly is crucial, regardless of upfront payments. This strategy isn't only about adhering to standards; it's about presenting your SaaS business as stable and reliable to investors and potential buyers. ?? Imagine the chaos in a board meeting or the red flags during M&A due diligence with inconsistent revenue reporting. Avoid the pitfalls and ensure your financial narrative is as smooth as your service delivery. Don't let improper revenue recognition be the chink in your armor. Watch now for Scott's insights on keeping your SaaS financials robust and ready for scrutiny. #SaaS #RevenueRecognition #Startups #VC

?? Thrilled to share insights on proper revenue recognition for SaaS companies! ?? Understanding GAAP-based accounting is key for startup success. Find the link to the detailed explanation in the original Kruze Consulting post. #SaaS #RevenueRecognition #StartupSuccess #VC

?? Accurate revenue recognition can make or break your startup's financial health! ?? Learn why GAAP accounting matters for SaaS companies. Find the full video in the original Kruze Consulting post. #SaaS #RevenueRecognition #FinancialHealth #VC

For quite some time now I’ve held the belief that the software-as-a-service (SaaS) business model is the future of #fintech. Offering tremendous flexibility, #SaaS enables businesses to access software solutions on-demand and scale their usage according to the contemporary needs. This is particularly advantageous for startups and small businesses with limited resources, as they can gain the ability to access sophisticated software tools without the need for significant investments in infrastructure or licensing. Secondly, SaaS offerings, by their nature, are subscription-based, which means a more predictable revenue model for software providers. With easier financial planning and greater stability gained through this, SaaS companies can focus on innovation and product development rather than constantly chasing new sales. Moreover, that same subscription model incentivizes providers to put effort into customer satisfaction and addressing their needs, thus contributing to the maturation of the industry as a whole. And there is ample support in favor of this stance. At the end of February, the data firm PitchBook published a report on emerging #venture capital opportunities in the tech sector. In terms of expected successful exits, early-stage SaaS companies stand at the very top, holding 75% of the market share. If this isn’t a clear reflection of industry trends, I don’t know what is.

In our latest post, my colleagues Matt Schaar, Devraj Hom Roy, and Michael Wolfe break down the key metrics and strategies for building a successful verticalized software as a service (vSaaS) business. At Accion Venture Lab, we're excited about how vSaaS can uniquely and effectively use transactional data and an engaging customer experience to deliver accessible, affordable, and timely financial products for underserved small businesses. Check it out and let us know what you think!