The Bubble Machine

If you have at least some sort of marginal interest in what is going on in 2011 with respect to start ups, you can’t help to have read or heard about the new “bubble” controversy.

Valuations and deal sizes for “hot start ups” are reaching lofty heights.

The Value of Growth for SaaS Companies

I received a report from SaaS Capital titled “Leaders and Laggards: SaaS Growth and the Cost of Capital”. The subject of the report is how the public markets value a high growth SaaS company (their definition of high growth is >25% YoY).

The report states, “13 public SaaS companies tracked by Pacific Crest Securities have increased in value 40% since the beginning of 2008. During that same period, the S&P index has yet to return to its pre-recession value.”

Managing Hyper Growth So “The Wheels Don’t Come Off”

I was reading the Wall Street Journal this past Saturday and came across an article on page B3 regarding GroupOn’s revenue growth from 2009 to 2010.   For anyone who has been asleep for the past year, GroupOn is a “daily deals” website offering online discount coupons for primarily local goods/services.

According to the article, from $33M in 2009, GroupOn’s revenue virtually exploded in 2010 to $750M. From an employee base of 120 in 30 cities in 2009, the company now has 4,000 employees across 565 cities. Holy cow!

For 2011, I Gave My Blog a CrowdSourced Facelift — Well, Sort Of…

So, you may have noticed the new look for my blog and want to know, “Why the change?”

When I originally started this blog, I did it as an experiment; I didn’t give a lot of thought about the long-term breadth of topics I wanted to cover beyond “Software as a Service” nor the blog’s overall positioning. I thought that if it garnered a few followers I would circle back and consider its “look and feel” and branding.

Did Salesforce Just Announce Support for Client/Server Computing?

I was able to attend Dreamforce on Tuesday in SF this week and hear Marc Benioff’s keynote address – although I had to do it from an overflow room since the main room was packed beyond capacity. Tremendous showing especially considering the fact that we’re supposed to be in an economically depressed climate.