A VC in Vacationland

cliffs notes (Photo credit: Shreyans Bhansali)

So you are building a successful SAAS software company and are looking for new investments. Congratulations!

What are key metrics sophisticated investors are looking for to justify a growth capital investment? One of my companies has been exploring this with leading venture investors. Here's the Cliff Notes summary:

50% growth

50% Gross Margin

50% Services (a 1:1 attach rate)

That's not to say you cannot be funded under these metrics, but expect a direct correlation between how close you are to these metrics and the proffered valuation by the potential investors.