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Understanding SaaS: Why the Pundits Have It Wrong

Tune into any cable network stock market channel and the airwaves resonate with one consistent theme: SaaS companies are simply too expensive. In fact, we might even be in a bubble!

The argument goes as follows — high revenue growth coupled with lack of profits means these businesses are fundamentally broken. Just as we saw in 1999-2000, investors’ willingness to pay for growth at any cost will end and many SaaS companies will be left behind. [Click here for the full article…]

 

 

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Reid Anderson

Reid Anderson

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