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    Funding SaaS Startups

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    Roshan D'Silva
    The document discusses factors that investors look for when evaluating early stage SaaS startups for funding. It notes that raising external funding at the right time through angel investors can help startups achieve greater success by leveraging the guidance, mentoring, and facilitation that investors provide. For SaaS startups specifically, investors evaluate the ability of the startup to grow monthly active users or revenues by 10x within 2-3 years of funding. Rapid growth is important in the competitive SaaS market to gain market share before competitors and provide the highest return on investment for investors.

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    Funding SaaS Startups

    Uploaded by

    Roshan D'Silva
    65 views2 pages
    The document discusses factors that investors look for when evaluating early stage SaaS startups for funding. It notes that raising external funding at the right time through angel investors can help startups achieve greater success by leveraging the guidance, mentoring, and facilitation that investors provide. For SaaS startups specifically, investors evaluate the ability of the startup to grow monthly active users or revenues by 10x within 2-3 years of funding. Rapid growth is important in the competitive SaaS market to gain market share before competitors and provide the highest return on investment for investors.

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    Funding saas startups

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    The document discusses factors that investors look for when evaluating early stage SaaS startups for funding. It notes that raising external funding at the right time through angel investors can help startups achieve greater success by leveraging the guidance, mentoring, and facilitation that investors provide. For SaaS startups specifically, investors evaluate the ability of the startup to grow monthly active users or revenues by 10x within 2-3 years of funding. Rapid growth is important in the competitive SaaS market to gain market share before competitors and provide the highest return on investment for investors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    65 views2 pages

    Funding SaaS Startups

    Uploaded by

    Roshan D'Silva
    The document discusses factors that investors look for when evaluating early stage SaaS startups for funding. It notes that raising external funding at the right time through angel investors can help startups achieve greater success by leveraging the guidance, mentoring, and facilitation that investors provide. For SaaS startups specifically, investors evaluate the ability of the startup to grow monthly active users or revenues by 10x within 2-3 years of funding. Rapid growth is important in the competitive SaaS market to gain market share before competitors and provide the highest return on investment for investors.

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    Funding SaaS Startups: 10x growth

    is the key
    What investors look for in early stage SaaS startups.

    Which group do you belong? Dependent, Independent or Interdependent? According to


    leadership expert Dr Stephen Covey Interdependent people combine their own efforts
    with the efforts of others to achieve their greatest success.

    Raising a seed fund is a crucial decision entrepreneurs must take. It is like a company
    moving from independence to Interdependence. While entrepreneurs could
    achieve success being independent, leveraging external funding at the right time
    through Angel Investors, who can guide, mentor and facilitate, could catapult them to
    achieve greater success.

    Once the decision to raise angel or seed funding is taken within the founding members,
    the next step would be to look at what investors typically look for in early stage startups.
    The common ones are 1) Market opportunity 2) Solution validation and scalability 3)
    Maturity and domain expertize of the founding team and 4) Ability to generate profits
    as it scales. If the solution is in the SaaS (software as a service) areas then another
    critical parameter investors evaluate is the ability grow 10x within 2-3 years after the
    funding.

    The growth parameter here could be monthly active users or it could be even revenues.
    From investor perspective, ideal candidate would be an offering having potential to
    grow 10x and having a great team to execute their strategy.

    Tech driven disruptions are taking place at rapid pace. In SaaS world speed is the
    differentiator. How quickly one can acquire customers? Example people often quote is
    that of hotel industry: It took Hilton Hotels 93 years to build an inventory of 600,000
    rooms and Airbnb got there in just 4 years.
    In SaaS businesses if one is not able to grow quickly, the market share could be easily
    lost to competitors. Primary goal of investors is to exit with highest ROI and the faster
    the startup growth better it is for them.

    -Pramod DSouza, Co-Founder of Eagle10 Ventures and Sr Manager, Prod Dev at


    LogMeIn India.

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