The first metric we look at is life-time cash efficiency. We measure life-time cash efficiency as revenue / [equity + debt — cash] or simply put, revenue / historical net investment. The data below for the last 73 SaaS IPO’s shows at the time of IPO, SaaS companies generated on median $0.60 of revenue for every dollar of net investment up to the IPO. The average is higher at $0.92 of revenue for every dollar of investment.
sammy@blossomstreetventures.comhttps://blossomstreetventures.com/metrics/
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