Assessing SaaS Businesses — COVID 19

COVID-19 Risk Assessment Framework for public SaaS companies (Source: Chirag Modi)
  • Contraction of IT spending in certain industries (e.g. airlines, hospitality, oil and gas) that are particularly hit during the crisis.
  • End-customers in these verticals are generally re-negotiating their existing software subscriptions to restructure their cost base. In the worst cases, customers have stopped paying software providers due to liquidity constraints.
  • SaaS businesses in these verticals will be severely affected and their recovery will be dependent on the recovery in the respective end markets.
  • Horizontally integrated providers will survive but be hit hard by the decrease in budgets: ex. marketing automation tool; marketing budgets being slashed.

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Ian Bambrick

Ian Bambrick

Scratchpad for investment concepts seed — alternatives

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