A differentiated point of view for analysis of SaaS companies
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• Analyzing SaaS companies requires unique metrics and a
differentiated point of view. This framework seeks to provide
a comprehensive lens through which to view these companies.
• The framework assesses businesses across five categories:
the company’s solution, sales and marketing, revenue, path to
profitability and balance sheet. Investigating product market
fit, total addressable market, customer acquisition costs and
the company’s financing history serves as a starting point for
complete company analysis.
• SaaS business models are well-positioned for future growth.
The proliferation of SaaS businesses was driven by the
business model’s asset-light nature and ability to generate
recurring revenue, and the influx has only been perpetuated
by a number of large VC exits in the space over the past few
months, paving the way for more investment activity.
Published on July 5, 2018
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Credits & Contact
CAMERON STANFILL Analyst