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SaaSletter - Bigfoot Capital Provider Survey

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SaaSletter - Bigfoot Capital Provider Survey

Plus a Gartner indicator and reports from Capchase and OpenView

Matt Harney
Aug 3, 2023
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SaaSletter - Bigfoot Capital Provider Survey

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Bigfoot Capital: Survey + Podcast

Brian Parks
+ Bigfoot Capital (a non-venture debt provider focused on SaaS companies with roughly $2m-$15m ARR) just released their 2023 SaaS Capital Provider Survey

The highlights:

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  • 61 investment firms (67% equity, 33% debt)

  • 36 slides quantifying sentiment, deployment, and portfolio bridge capital needs

  • Plus qualitative quotes on the state of the market and their strategy shifts

My excerpts of the report are here.

Brian also joined our new “Cloud Returns” investing-oriented podcast series:

AUDIO | VIDEO

Gartner Digital Markets Indicator

I am watching Gartner’s Digital Markets segment since it captures both buyer interest (i.e. traffic on sites like Capterra) and software vendor spend (i.e. their cost-per-click bids + budgets on Capterra).

An important caveat before extrapolating to all of SaaS - my look into SpyFu data suggests a good portion of this YTD decline is related to an SEO issue for Capterra.com.

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Curated Links

In the middle of a busy earnings season, a helpful aggregation from

Jamin Ball
:

Re: earnings, as we “build in public” with our SaaS Demand Index, we regularly try to check whether it has any signal. In *this* instance with ZoomInfo’s earnings, Apollo’s search share gains appear notable:

An instant classic from Dave Kellogg on the obvious but overlooked *real* role of a CEO - “The CEO Job Description: In Reductionist Form”

There were some signs of stability/defensibility for early-stage SaaS spending in AngelList / Brex’s latest report.

Capchase released their benchmark report (email required) - n=900 SaaS at $1m-$15m ARR → the *median* metrics (Rule of 40’s in the low single digits, LTV/CAC’s 1.8x-2.2x, monthly logo churn around 2.0%) are reminders of how tough SaaS is sub-$15m ARR

OpenView’s 2023 Product Benchmark Report highlighted the dramatic slowdown amongst PLG companies:

New Relic Take Private: In addition to my usual “EV / Revenue / Growth” multiple tracking for any announced SaaS M&A (NEWR: 0.39x EV/R/G vs post-2017 PE enterprise average of ~0.48x - more here), I tried to capture New Relic’s time on the public markets in one chart - the rise of Datadog:

Cloud Ratings Content

We recently initiated coverage of Sales Engagement Platforms.

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