Are you paying too much for B2B SaaS growth? Use the “Growth-Adjusted Enterprise Value (EV) / Annual Recurring Revenue (ARR) Ratio”

Summary The G-A EV / ARR Ratio (“Ratio”) normalises growth for Business to Business (B2B) Software as a Service (SaaS) businesses. It asks the question – for each percentage of ARR growth, how much am I paying? Formula = EV / ARR Multiple divided by (Year on Year (YoY) ARR Growth*100) [Example Company: 9 /...

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The B2B SaaS investor’s playbook

Pointerra is a company that Track Record News reported on 1 April 2020 called “entrepreneurs who built a successful USD1bn geospatial technology company, join a new geospatial software venture.” Since reporting the company’s share price has gone up from 2.4c to as high as 50c, a 2,000% return (20x) investors. Pointerra is a Software-as-a-Service (SaaS) company,...

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About Me

Blogging about all things B2B SaaS, focusing on ASX and Australian companies

Sharing my thoughts, experiences and processes to help entrepreneurs, operators and investors better understand B2B SaaS companies in the Australia ecosystem

I’ll be breaking down how to use operational metrics, unit economics and qualitative factors to start, build and invest in B2B SaaS companies.

Having invested in both public and private companies, as well as helping build 4 B2B SaaS startups, I’m curious about all things B2B SaaS and enjoy sharing these insights with similar minded people.

These insights include how to use public information to get an inside edge on other investors, and for operators and entrepreneurs, how to improve and increase the success of your venture.