Why Can’t SaaS Companies Just Mint Cash?

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enterpriseirregulars.comAs we go into planning season for next year, hopefully all of you are thinking about burn rates, ZCDs, CAC, CLTV, and the like.

I’m doing a lot of this financial planning now. And one thing I can tell you is I see a lot of different plans for next year even at fairly similar ARRs.

Across maybe a dozen companies I’m an investor in that are going from a few million to > $10m next year in ARR … the burn rates are all, all, all over the place. Some are barely burning any cash. Talkdesk burned $0 net cash on the way to its first $10m in ARR. Others have built epic teams that are fairly “heavy” in terms of burn. Most are probably more like RainforestQA and Algolia, with fairly modest burns that creep up a bit as the sales teams are built out but still stay fairly manageable.

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