As Milestone Advisors works with technology companies to determine the best avenues to raise capital, we are excited that venture capital activity remains strong in software technology according to a recent PricewaterhouseCoopers MoneyTree report. For the full year of 2009, venture capitalists invested $3.1 billion in 619 deals, a 40 percent decline in dollars and a 35 percent decline in deals from 2008 when 45.1 billion went into 948 deals. Software remained the largest single industry category in terms of deal volume and second largest behind biotechnology in terms of dollars according to PWC. In the analysis of the software deals, Milestone Advisors has found that valuations for companies with recurring revenue through SaaS software get a higher valuation. As we work to help product development companies with their strategic business plans, we’re consistently seeking ways to leverage the SaaS model in recommending a go-to-market approach for technology products. The recurring revenue model is relevant in many products as a way to help customers conserve cash and can reduce the sales cycle in delivery of the product.
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