S3E14 - How do investors analyse SaaS businesses? With Cameron Hay
Mar 5, 2024
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Join expert Cameron Hay in a deep dive on how investors analyze SaaS businesses post-COVID, emphasizing data-driven decisions. Topics include mistakes when presenting to investors, aligning operational and financial data, strategies for data preparation, and the role of tools in keeping investors updated. Learn best practices for structuring data and enhancing investment strategies in the evolving financial landscape.
Post-COVID era demands transparent financial data for SaaS investments above 10k MRR.
Incorporating ancillary services can boost revenue and customer retention in SaaS businesses.
Deep dives
Adapting to Post-COVID Investment Changes in SaaS Businesses
Investors in the SaaS industry must adapt to post-COVID changes, as higher interest rates lead to less available debt financing. This results in a more selective deal market, urging businesses to focus on their financial data and unit economics to attract investment.
Preparing for Investor Discussions and Financial Transparency
When seeking investments above 10k MRR, founders are advised to ensure their financial data is well-organized and transparent. By presenting clean and data-driven insights to investors, businesses can leverage their expertise to facilitate growth.
Utilizing Data and Services to Drive SaaS Growth
SaaS founders are encouraged to experiment with customer acquisition channels, offer additional services aligned with their product, and leverage data to optimize revenue streams. Incorporating ancillary services alongside software offerings can enhance customer retention and boost cash flow.
Building Strong Relationships with Investors and Value of Financial Clarity
Establishing strong relationships with investors and maintaining financial clarity can positively impact a SaaS business's growth trajectory. By aligning operational and financial data and leveraging investors' expertise, founders can make informed decisions and capitalize on growth opportunities.
In this post-COVID era, money isn't flowing freely anymore. But here's the burning question: How exactly do investors analyse SaaS businesses?
Join us in this episode of the "Grow your B2B SaaS" podcast where we roll up our sleeves and dive into the detailed aspects and complexities involved in analyzing SaaS businesses, particularly in the post-COVID era. We'll shine a light on the crucial role of data-driven decisions in navigating the increasingly selective investment terrain of 2024 and beyond.
Leading our discussion is none other than Cameron Hay, co-founder of Finomatic Consulting. With a treasure wealth of valuable experience and knowledge in corporate finance, accounting, and data analytics, which is highly beneficial in his role as an expert in assisting private equity-backed SaaS firms, Cameron is the go-to expert for private equity-backed SaaS firms seeking financial optimization and real-time KPI analysis. Buckle up for insights that will reshape your investment strategies!
Key Timecodes
(00:37) Show and Guest intro
(1:30) Why you should listen to Cameron Hay
(02:08)The Changing Landscape of Investing
(03:24) Minimum Requirements for Talking to Investors
(04:24) Common Mistakes in Presenting to Investors
(05:55) Where most Deals go wrong (Aligning Operational and Financial Information)
(07:04) Strategies for Getting Data Ready
(09:27) Keeping Investors Updated(The role of the tools)
(10:20) How Cameron structures his data
(10:54) The best practices to keep your investors updated
(13:00) Target Net Retention Rate(The monthly Report)
(14:54) The target for SaaS businesses in 2024
(16:06) Challenges in Getting Data Ready
(20:05) The Future of VC and SaaS Analysis
(23:59) Why SaaS Companies should work with Cameron Hay
(25:43) How to grow towards 10K MRR
(26:26 ) How to grow towards 10 million ARR
(28:15) Advice for SaaS founders
(31:42) What Cameron wishes He knew 10 years ago
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