Insights

Over the years, successful CFOs from across our portfolio have shared their insights and advice in our SaaS Talk interview series. We pulled together five of our favorite answers to questions that may be on your mind – during budget season and beyond.

1. Should M&A be a part of a technology company's growth strategy?

Absolutely. Buying can certainly beat out building if you consider the time and expense you save including the trial-and-error process. Things are moving quickly and acquisitions can help you leapfrog the competition. The industry is crowded and consolidation is not only inevitable but resourceful. 

— Matt Parson, former Chief Financial Officer, CloudBees

2. How do you think SaaS companies can position themselves to attract the right kind of funding? 

It comes down to the business model, being able to articulate it and prove it. Can it drive rapid growth through new customer acquisition, and then retain and expand those same customers? These are questions of critical interest to investors looking to invest in a SaaS business–through equity or debt. And being able to show this is dependent on whether you’re fundamentally delivering business value to your customers through your product and service. 

— Eric Yeaman, former Chief Financial Officer, Silver Peak (acquired by HP)

3. What factors do you weigh when considering a new financing partner? How do you best ensure that a company’s funding is aligned with its goals?

There are a number of factors we consider when teaming up with a new financing partner, but first and foremost, we look for a strong firm that truly understands our business and shares the same values and long-term perspective as our founders and management team. It has to start here. 

Aside from the financing itself, we also always look for a proven and respected operational team we can learn from and an extended global network we can leverage. Golub Growth has been a great partner across all fronts. 

— Elizabeth Loar, former Chief Financial Officer, SnapLogic

4. What factors do you weigh when you're thinking about raising capital, whether equity or debt? 

We focus a lot on our long-term capital planning as well as short-term forecasting. We've always been focused on what Templafy looks like four, five, six years out, what the major milestones will be and what we need in terms of fundraising to get there. 

That informs the lens of how we look at potential fundraising options, whether it's price, valuation or amount. That has really helped us be more educated about what we're looking for in terms of fundraising and type. 

— Cynthia Stephens, Chief Financial Officer, Templafy 

5. What is the most important area for a technology company to invest in to grow? 

Research and Development is number one! The product drives everything at the end of the day. The SaaS space is crowded and companies have to fight to innovate and differentiate themselves. Investing in continuous innovation ensures that companies can keep up and adjust to the demands of customers and the market.  

— Matt Parson, former Chief Financial Officer, CloudBees