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Maybe I'm hopelessly naive here, but $4M cash @ 2.65 ARR, so ~$1.5M ARR. Isn't that a bit low for SaaS at 7 years? Then there is the mention of running at break

Maybe I'm hopelessly naive here, but $4M cash @ 2.65 ARR, so ~$1.5M ARR. Isn't that a bit low for SaaS at 7 years? Then there is the mention of running at breakeven most of that time. There are solo founder SaaS businesses making more than that with 80%+ margins. As others have mentioned, you'd be better off working at a FAANG. So, did something go wrong here? What is it about this analytics business that makes it so expensive to operate? Were all the employees necessary? Was the pricing or marketing wrong? Or is this just the reality of most SaaS? I gotta say, this really puts a damper on what I always thought was a fairly lucrative business model, if you could make it past the early bootstrap/product-market-fit period.

jaredhansen 6y ago
>~$1.5M ARR. Isn't that a bit low for SaaS at 7 years? The median and modal ARR for SaaS businesses 7 years after founding is zero.
- deckard1 6y ago
  Of course. The vast majority of all businesses fail. That's not what I'm asking. No one gets into business to just breakeven after 7 years. Most people are looking at this as a success story when it just seems like Xenon and their other investor that took a loss were doing them a favor.
- texasbigdata 6y ago
  Across all businesses across all industries in North America a reasonable guess (with a wide confidence argument) would be 1x revenue as a baseline valuation.