Four key tips for SaaS start-ups August 11, 2011 RICCentre By Marielle Voksepp “What I find over time is that the best SaaS startups build custom, in-house data analytics that are particular to their use case” – Mark Macleod Investors love the scalability of software as a service (SaaS) companies, in particular when they’ve established a predictable, revenue-generating audience that’s measured and adjusted on a granular level. Mark Macleod, General Partner of Real Ventures (Canada’s largest seed venture fund) offered his thoughts on what investors look for and what startups should constantly look to fine-tune. Here’s a synopsis, followed by his full presentation. Why stakeholders prefer recurring billing over one-time licenses Why SaaS startups must be data-driven The hard and soft factors involved in a pricing decision The two reasons that customer pre-payment is essential Mark’s four tips Here’s a video of Mark’s SaaS discussion and presentation from our Best Practices series. Mark’s MaRS Best Practices presentation “Getting your pricing and metrics right is critical for any start-up, but doubly so for a recurring-revenue business. In this session, we’ll explore key customer metrics for new ventures, including acquisition, activation, conversion, churn and referrals. We’ll look at pricing in general and freemium in particular. Finally, we’ll examine valuations for software-as-a-service (SaaS) companies and how they compare with companies using traditional software license models.” Here’s Mark’s slide presentation. Blog reposted from MaRS DD. Marielle Voksepp works as part of the education team at MaRS. She helps entrepreneurs get access to business resources both online and in-person. The RIC blog is designed as a showcase for entrepreneurs and innovation. Our guest bloggers provide a wealth of information based on their personal experiences. Visit RIC Centre for more information on how RIC can accelerate your ideas to market.