Cloud Returns | A SaaS Investing Podcast

In this episode, host Matt Harney speaks with Joey Brookhart, Co-Founder of AlphaRepo and a longtime long-short software investor, as Managing Partner and Portfolio Manager of Sandbrook Capital. Joey explains the SaaS metrics that matter most, the overrated ones investors should avoid, and why earnings day volatility often comes down to “bogeys” and positioning rather than guidance. He also introduces AlphaRepo, the Excel-integrated platform he built to track model revisions and portfolio-wide trends, and offers advice for aspiring buy-side analysts. Episode Topics: Memorable Quote: On overrated metrics: “Anything that’s really backward-looking, or doesn’t tie to the drivers of the business, is noise.” Resources: AlphaRepo Joey Brookhart on LinkedIn Joey on Twitter / X: @SaasquatchC

Our Guests: Marissa Moore, and Taku Murahwi of OMERS Ventures, an early-stage venture capital firm investing in Series A-C companies with a first cheque size between $5-25M. Episode Topics: The Green Room Resources: OMERS Ventures Vertical AI Report: https://airtable.com/appcfwQFbRedHquqo/paghteBojIXj9d72g/form About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software. Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Diamond Innabi is a Principal at Software Equity Group (SEG), a boutique M&A advisory firm headquartered in San Diego that focuses on B2B vertically focused software and SaaS companies. Episode Topics: the “The higher-than-usual volume of low multiple deals is a result of from negative transaction catalysts like evaporating cash runway, challenging debt dynamics, competitive concerns, or investors opting to exit their lower-performing assets to focus on high performers.”Resources: https://softwareequity.com/research/ https://softwareequity.com/company-valuation-formula/ https://softwareequity.com/research/saas-ma-buyers-perspectives About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software. Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Paul Stansik is the Private Equity Operating Partner at ParkerGale Capital, a B2B focused private equity firm, buying profitable technology companies from founders. Episode Topics: "Always scrubbing the pipeline means never scrubbing the pipeline." Resources: Paul Stansik’s Substack: https://hellooperator.substack.com/ The Weekly Sales Metrics Playbook Hiring Playbook Slides: How We Hire At ParkerGale "What CEOs Should Expect From Their Sales Leader" "AI’s Impact on Sales + Marketing" About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software. Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Dave Yuan is the Founder of Tidemark, a growth equity firm focused on helping companies scale. With over 20 years of experience, Dave has invested in twelve companies that have gone public, eight that have been acquired. Episode Topics: opportunity, neutral, or a threat in vertical SaaS Resources: Tidemark Vertical SaaS Knowledge Project: https://www.tidemarkcap.com/vskp Tidemark 2024 Vertical SaaS Benchmark Survey: https://www.surveymonkey.com/r/5CFVSHQ About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software. Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Akash Bajwa is an investor in fintech and B2B SaaS at Earlybird Venture Capital, a European venture capital firm with 2 billion Euros in assets under management (AUM). Episode Topics: Resources: https://substack.com/@akashbajwa https://www.earlybird.com/ About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software. Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Nick Tippman, former Chief Marketing Officer at Greenlight Guru, a category-leading provider of regulatory software for the MedTech vertical. He is now an angel investor, investing in exceptional Vertical/SMB SaaS, AI, Fintech, and B2B Marketplace founders and companies at the pre-seed/seed stage alongside other leading investors. Episode Topics: What's the primary challenge in vertical SaaS: Is it GTM or product? Why?Resources: Eli Dukes Vertical SaaS Substack - https://verticalized.co/ Nick’s Google Doc - “Ultimate List of 37+ VC & PE Firm Theses & Market Updates on Vertical SaaS” About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software. Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Brian Parks is the Co-Founder and CEO of Bigfoot Capital, a non-venture debt lending firm, that provides growth and bridge debt facilities to SaaS companies with $2+ million in annual recurring revenue. Episode Topics: 2/3 of equity investors and lenders expect to be more active over the next 12 months” “I'm anti-frivolity with equity and think a lot of people are extremely frivolous with their equity, selling too much of their company too early." Resources: https://bigfootcap.com/ https://bigfootcapital.substack.com/ https://bigfootcapital.substack.com/p/capital-provider-sentiment-survey-17d https://calendly.com/bigfoot About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Sales Engagement Software, Sales Conversation Intelligence Software, Sales Compensation Software, and Digital Sales Room Software Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/

Our Guest: Patrick McGovern from Bowery Capital, an early-stage venture capital firm focused exclusively on founders looking to modernize business through technology. Episode Topics: Resources: https://bowerycap.com/blog twitter.com/pw_mcgovern https://bowerycap.com/blog/insights/artificial-intelligence-in-vertical-software-a-map-of-the-market https://breakingsaas.substack.com/p/vertical-saas-bowery-capital About Cloud Returns by Cloud Ratings: Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets. Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack. https://cloudradio.cloudratings.com/ https://twitter.com/SaaSletter https://www.saasletter.com/ About Cloud Ratings: Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions. Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Subscription Management Software, Session Replay Software, Sales Compensation Software, and Digital Sales Room Software Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value. https://cloudratings.com/