The Five Characteristics of An Ideal SaaS Company


This post is by Tomasz Tunguz from Tomasz Tunguz


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With more than 80% of venture capital investments occurring in enterprise and with the public markets disproportionately rewarding SaaS companies with huge enterprise value-to-revenue multiples (median is 7.6), it’s no surprise that interest Software-as-a-Service is booming. After meeting quite a few SaaS companies, I’ve compiled a list of my ideal characteristics for a SaaS business below. Characteristic 1: Product Is Core to the Operation of the Business The product is essential to the operation of a customer’s business.

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