Entries by Paolo DiVincenzo

Basis State Rearranges its Service into 3 Phases

When Tim and I started Basis State, we considered carefully how to maximize the acquisition offers received by our clients. Our process was designed with the expectation that every client could find an acquirer. We now appreciate that this is not the case, particularly in the current environment. We plan to publish our success rate […]

Sub-Scale SaaS Valuation Model 1: Accelerate a Roadmap

When acquirers buy a sub-scale SaaS business, it’s rarely for the business’s revenue. The revenue-based valuation rules that apply for scaled SaaS companies do not apply sub-scale. Instead, sub-scale SaaS valuation is based on the particular reason the target is receiving interest, and this can vary. As I’ve mentioned in previous articles, there are three […]

Study the Wall Before You Focus on the Road

“When they teach you how to drive a racecar, they tell you to focus on the road when you go around a turn. They tell you that because if you focus on the wall, then you will drive straight into the wall.”    – Ben Horowitz Ben Horowitz has a great point. There are a myriad of pitfalls […]

The VC-backed Bullseye, and What Happens When You Miss

Building a successful VC-backed company requires getting everything just right. Getting it right means hitting a bullseye where three factors intersect: Founder Competency, Market Reality, and Investor Approach. When you hit that intersection, you have a big exit and sail away to your private island. When you miss, you either hire or negotiate, depending on […]