As an investor in early stage SaaS companies, I often find founders to be confused on what metrics they should track. Challenge is not a lack of metrics, but too many metrics, with most of them stage irrelevant for the company. For example for a pre-PMF SaaS company,...
SaaS conversations are often about scaling GTM, and rarely talk about how to scale product and engineering, which can make or break your startup! We want to change that in this edition of SaaS Talks. In this session of SaaS Talks, we discussed with Anand Jain,...
Imagine a world where drones deliver your Swiggy order to your home, where you can play Fortnite with your buddies as if they were sitting right next to you and instantly stream Netflix at 4K resolution on your phone during your morning commute. With the latest 5G...
In a downcycle, existing customers will matter even more than they did before. Not only is their retention & expansion important, but they are also your best advocates to new prospects. So, how do you market to, and market with, your existing customers, and who is...
Why Existing Customers Matter I sold enterprise software for 10 years at SAP and Siebel during the license era. If you look at the core economics of that business, the upfront license revenue from a customer is offset by the cost to acquire. Implementation services...
The Company and the Founders shall complete an initial public offering or a ‘strategic sale’ within 5 years from the Closing Date (“Exit Date”) on terms that are acceptable to the Investor. The failure of Company and Founders to provide an exit by the Exit Date shall not relieve the Company / Founders of their obligations to provide an exit to the Investor, which shall continue until the Investor ceases to hold any shares. In case of failure to provide exit, the Investor shall inter-alia have a drag along right on all other shareholders of the Company.
Liquidation Preference
Higher of 1x or pro rata entitlement on an as-if converted basis in any liquidity event. Liquidity event shall be defined in the definitive documents and will inter alia include change in control or sale of substantially all of the assets of the Company.
Pre-Emptive Rights
The Investor shall, in any subsequent offering of securities by the Company, have a right to maintain their shareholding in the Company. [Note to Draft: Any super pro rata rights will be over and above this and should be included here]
Valuation
The valuation section concerns what an investor believes the company is worth. valuation issues addressed in the term sheet will include: pre-money valuation, post-money valuation, capitalization table and price per share.
