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

Jason Lemkin

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.

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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:

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Published on April 13, 2014

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…

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