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It's true that PE firms cannot be trusted with a SaaS product. It is also true that most SaaS companies are not profitable for the service they provide at the r
by npalli 2y ago
It's true that PE firms cannot be trusted with a SaaS product. It is also true that most SaaS companies are not profitable for the service they provide at the revenue they derive. This reset, which we will see a lot of since the entire SaaS category has to be re-priced, is the scalable way to clean up companies (why are SaaS employees paid so much?, why are customers paying so little etc..) and put them on a sustainable path. This trend will continue to grow.
- miohtama 2y agoIf there is $300M revenue and no profit, lay off the half of the staff and you get $150M profit in a SaaS company. The Musk recipe.
- hmmm-i-wonder 2y agoHow is untrustworthy companies implementing asset stripping and debt loading a scalable way to put already unprofitable and questionably sustainable companies on a sustainable path? That doesn't square. Taking a company private CAN indeed counter short term profiteering if done by a group that actually cares about the company but I have yet to see a PE firm provide that.