SaaS Capital
SaaS Capital - Insights on SaaS metrics, financing, and growth strategies
An Evolution in SaaS: The Median Company Has a Positive Operating Margin
The SaaS Capital Index shows the median publicly‑traded SaaS company posting a positive operating margin for the first time in over a decade, reaching +3% in February 2026 after a low of –21% in mid‑2022. This improvement arrives amid a broader market slump, with the index falling 26% in the first two months of 2026 and AI‑related headlines dominating the narrative. Analysts link the margin rebound to higher U.S. 2‑year Treasury yields that forced firms to curb spending and prioritize profitability. The trend suggests the sector is adapting to a higher‑cost capital environment while still navigating AI disruption.
Valuations, Growth, and Control: What Founders Should Know About SaaS Financing
Rob Belcher of SaaS Capital explains that today’s SaaS founders can choose from bootstrapping, equity, private‑equity, and growth‑debt financing, with debt offering a dilution‑free path for companies generating $3‑15 million ARR. He outlines how SaaS Capital’s loan‑fund model aligns lender incentives...
SaaS Has Evolved and Its Definition Should Too: Subscription-Ai-and-Software
Software‑as‑a‑Service (SaaS) has matured from early ASP models to a dominant cloud delivery framework, and its definition is now being refreshed to reflect pervasive AI integration. SaaS Capital’s leadership argues that the industry should be called Subscription‑ai‑and‑Software, highlighting that AI...