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October 2020

Elements of Finance

The latest news, tips, and techniques in SaaS finance.

Funded vs Bootstrapped: Comparing the Metrics of 37 SaaS Companies

The Founder of MemoHub, Clement Vouillon, presents an interesting analysis of venture-backed vs bootstrapped companies (albeit a small sample size). Bootstrapped companies aren’t as different from funded companies as you might think.

They have similar MRR and churn compared to venture funded companies, and sometimes, they have a more diverse customer base but not always. Bootstrapping has always been a legitimate strategy to grow your business, and it’s only getting more popular.

What You Should Know About Warrants

A lot of venture debt providers require equity warrants. Some even call them “equity sweeteners,” because they can easily be worth more than the interest paid.

At Element, we’ve taken a hard stance against equity warrants, but if you’re considering venture debt, you need to know how warrants work.

Why Sales Tax Compliance Matters for Growing SaaS Companies

While they're not the most exciting part of our businesses, taxes are something you never want to be an issue. Sales tax specifically can be a challenge for international SaaS companies, but there are some great options to help you get it right.

Cheers,
The Element Team

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