There was a time when software companies could rely on growth rates and compelling narratives about scalable business models. Revenue was paramount, profit an afterthought. A decade ago, investors routinely paid six to ten times annual recurring revenue for SaaS businesses, and that felt entirely reasonable. Anyone who raised concerns about cash flow was dismissed as an old-fashioned investor who did not understand the future. That era has ended.
Continue reading this article?
Register for free and get access to Investment Officer International:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
Register for free and get access to Investment Officer Luxembourg:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required