SaaStr on NBC’s Press:Here on Box, DropBox, WhatsApp — And the Lack of Fear

NBC was kind enough to have us back on Press:Here (right after Meet-the-Press) to discuss DropBox’s almost-$1-billion in debt and equity raised this year, Box’s IPO, and beyond that, just what’s Going On in the Enterprise these days.

My overall answer:  there’s current a Lack of Fear, notwithstanding the (relatively modest) market correction in ’14.

Screen Shot 2014-04-13 at 9.41.53 AM

For example, I recently was speaking with a VC who had invested in a great SaaS start-up that just did a round at a $300 million valuation.  On very, very limited revenue.  His view?  There was No Risk.  No risk the company wouldn’t be sold for > $300m.  No risk the company wouldn’t grow its revenues 20-40x to go IPO and justify the valuation.  No risk.

And maybe that’s true.

Box is going to have a monster IPO.  But it also has barely more than a year of cash in the bank at its current burn rate.  No problem.  No fear.

It’s a very good time to be a great SaaS entrepreneur.

No fear makes it all a lot more fun.  Personally, I’m staying at this SaaS party until they kick us out in the wee hours of the morning.

More on this theme on our chat on NBC below:

Screen Shot 2014-04-12 at 1.50.02 PM

 

One comment

  1. No risks?!? We should all be worried when investor comment like that!
    While there is clearly (seemingly anyway) a growing need and demand for SaaS businesses the valuation issue remains.
    When people, of all walks of the industry, be they entrepreneurs, employees, VCs or Wall Street spend more time on valuation discussions than the businesses themselves … trouble is brewing. Pick you own historical analogy .. there are plenty.
    Just saying…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 8,618 other followers

%d bloggers like this: