Finance

What is SaaS accounting: a $12,000 upfront annual payment is recognized as $1,000 of revenue each month under ASC 606, and the unearned rest is deferred revenue

SaaS Accounting: The Complete Guide to Revenue Recognition, Metrics & Compliance

SaaS accounting is how software-as-a-service companies record and report their finances: on the accrual basis, with subscription revenue recognized over…

January 20, 2023 • 20 min read
Startup accounting turns business transactions into reconciled books, financial statements and decisions.

Accounting for Startups: How to Set Up Your Financial Foundation

Accounting for startups means recording business transactions, choosing cash or accrual accounting, maintaining a chart of accounts, and turning reliable…

January 3, 2023 • 11 min read
What are SaaS KPIs: four groups of metrics, growth (MRR, ARR, ARPU), retention (churn, GRR, NRR), unit economics (CAC, LTV, payback) and efficiency (burn multiple, Rule of 40)

SaaS KPIs & Metrics Every Company Should Track

SaaS KPIs are the key performance indicators a software-as-a-service company uses to track recurring revenue growth, customer retention, unit economics…

October 17, 2022 • 12 min read
How SaaS valuation multiples work: annual recurring revenue of $2M times a 5x multiple, which is set by growth, retention and margins, gives an enterprise value of $10M

SaaS Multiples & Valuation Guide for Founders

A SaaS multiple is the number a buyer or investor multiplies a software company’s annual recurring revenue (ARR), revenue or…

September 22, 2022 • 13 min read
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Non-Dilutive Funding: 8 SaaS Financing Options Compared

Every SaaS founder faces the same tension: you need capital to grow, but raising it often means giving up ownership.…

September 14, 2022 • 20 min read
Unsecured business startup loans name no specific asset as collateral, unlike secured loans, but are usually backed by a personal guarantee or a blanket lien

Unsecured Business Startup Loans: What Are the Best Options?

An unsecured business startup loan is financing that isn’t backed by a specific asset such as property or equipment: the…

August 25, 2022 • 16 min read
Nine startup funding options by what you give up: bootstrapping, grants, loans and revenue-based financing keep all equity; friends and family and crowdfunding depend on the deal; angels, accelerators and VC sell equity

Early-Stage Funding Options: 9 Ways to Finance Your Startup

The main startup funding options are bootstrapping, friends and family, angel investors, accelerators, venture capital, grants, crowdfunding, loans and revenue-based…

August 18, 2022 • 14 min read

Early Stage Startup Financing: 7 Options Before Series A

Securing early-stage financing can be the difference between your startup getting off the ground or remaining nothing more than an…

August 10, 2022 • 9 min read
A startup funding proposal covers the problem and solution, the market, traction, the team and financials, and ends with the ask: how much you need and how you will use the funds

Startup Funding Proposal Template: Examples & What Investors Want

A startup funding proposal (also called an investment proposal) is a short document or deck that tells an investor or…

August 2, 2022 • 11 min read

Revenue Based Financing: What SaaS Founders Need to Know

CB Insights reports that nearly 30% of startups fail because they run out of cash. For SaaS founders with strong…

July 5, 2022 • 15 min read

Startup Funding Types: Bootstrapping vs VC vs Debt vs Revenue-Based

According to Startup Genome, 90% of startups fail. If you want to become part of the successful 10%, you have…

June 30, 2022 • 9 min read
What is a startup balance sheet: assets of $210,000 equal liabilities of $170,000 plus equity of $40,000 on one date, from the year-one SaaS example in this guide

Startup Balance Sheet Template: How to Build & Read Your First One

A startup balance sheet lists what your company owns (assets), what it owes (liabilities) and what belongs to the owners…

June 26, 2022 • 16 min read