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September 2020

Elements of Finance

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

Covid Benchmarks from KeyBanc’s SaaS survey:

David Spitz, Managing Director at KeyBanc, gave a run down on the state of the SaaS market, here are a few key stats that stood out to us.

  • 20% of YTD churn can be attributed to Covid, but many companies on annual contracts haven’t had an opportunity to churn yet.
  • 39% of SaaS companies have had to reduce their workforce with the biggest impact being to sales teams.
  • Gross New ARR Bookings % of Starting ARR. New 2020 forecast is down 29%
  • Close rates on new deals down 8%

How to Compare Revenue Based Financing with Term Loans

Thinking of raising venture debt? It can be difficult to know whether your company should take revenue based financing or a term loan. Comparing the costs, benefits, and risks of each will help you make the best decision for your company.

Why It's Important for SaaS Startups to be Frugal

While being frugal as a start up is important, it's more important to make sure you spend the money you have in the right places. Knowing where not to cut the budget is the key to long term success for your business.

Current State and Trends of Finance Teams

Today, 58% of finance teams say they aren’t providing the services the business wants. 42% are looking to upgrade tools to cloud-based solutions. The former is certainly driving the later.

Software that automates key functions can provide value right away and smooth transitions into new personnel due to turnover.

Cheers,
The Element Team

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