Sometimes a Unicorn is simply a Donkey wearing a horn
Real churn vs Quoted churn?
Is there hidden churn?
Is there bloat in the tool-stack?
Is the NPS real or inflated?
Are there pinch-points in the sales process?
Is the ARR realistic or are some contracts not annualized?
As a venture capitalist or private equity firm evaluating SaaS businesses, you know that relying solely on revenues, cap tables, and standard metrics can be risky. You need a complete view of the business to make informed investment decisions
That's where SaaSili delivers.
Our evaluation goes beyond typical SaaS metrics like MRR, ARR, Churn, and Runway
SaaSili can very quickly give you a complete view of the business so you can make even more informed investment decisions. Our comprehensive evaluation allows you to maximize your chances of success with your B2B SaaS investments
We offer two services for Investors in B2B SaaS:
Pre-Investment Sanity Check
Evaluation of the business, including all metrics, runway, churn/hidden churn, burn rate, ARR validation and more. We deliver a validated report detailing the real market position of your potential investment
Post-Investment Turnaround
If you have invested in an under-performing B2B SaaS, clearly there are 2 options. 1. Let it run its course and probably lose your investment, or 2. SaaSili will engage with the company, identify the issue(s) , formulate a turnaround plan and can also execute it for you
EXAMPLE FINDINGS:
A group of Investors were ready to sign off a 6-figure investment in a growing SaaS business. The standard metrics looked strong. They approached us to conduct a final ‘sanity check’
We identified:
Their revenue growth, cash flow, expenditure, burn rate, and runway, would create a serious cashflow issue within 8 months
Although the official churn was low (3%), there was a big hidden churn problem. The company had several clients on long-term contracts. We analyzed the relationships and anticipated 15 would churn by the end of the FY. This happened and around 38% of the ARR was lost
An over-adoption of tools, with no internal designated ownership. This created confusion, tool redundancy, and unnecessary expenditure
Other engagements for Investors have identified:
The MSA was not GDPR compliant and was excessive as well as restrictive. It was creating friction for sales and delaying the closing, as well as a legal risk for the business
In just 3 days we identified a lead gen problem. The BDR cadences and tone were a mismatch for their target audience. This had been an issue for over 6 months
In one SaaS company we identified a senior VP who, although seemingly competent and professional, was unprepared and inexperienced. Our report was based on the qualitative aspects of the VP, and the risks they posed to the business. The round was postponed once the VC had confirmed our findings
We conducted an NPS evaluation and found that over 45% of the scores were submitted unethically
We evaluated one company’s lead to close rate which was under 10%. When we looked into their lead gen and AEs there was clearly a focus on the quantity of leads generated, not the quality. We implemented a new strategy and redefined the sales cadence, to then create a lead to close rate of 23%
Enquiry
If you are interested in our Investor Services, or would like some further information, please complete the form opposite and we’ll get back to you within the next 4 hours