Financial Consulting for Techology
We partner with software and technology companies to unlock insights about their growth and profitability.
Help consumer software (B2C SaaS) companies with their growth and engagement metrics.
Define, track, and improve your business software (B2B SaaS) metrics like CAC and LTV.
Partner with frontier tech companies to build new strategies, tactics, and frameworks.
What is financial consulting for technology?
Alluxo partners with technology companies of all types, including software-as-a-service (SaaS) and frontier technology companies. We offer finance and strategy consulting that augments executive teams.
Finance is a broad area, so we would like to define our specific services and how we prefer working with teams. In particular, we want to define how we see financial consulting as different from traditional bookkeeping or accounting services.
Accounting & Bookkeeping
Accountants and bookkeepers focus on tracking how a business has historically performed. A solid set of accounting books is a must-have, and we recommend working with a talented accounting team.
Whether you have an internal team or hire a consultant, accountants can help provide helpful information about the business health. That said, between closing the books every month and preparing for taxes, accounting teams are pressed for time.
That's where we come in.
Finance & Strategy Consulting
Alluxo only works with technology companies looking to gain deep insights from their finance, operations, and product data.
We work with company founders and executive to first set our goals, then define metrics, and improve the strategic position of the company. This process requires understanding the as a whole business and which opportunities will dramatically increase the business value.
For example, our team worked with a 3D Printing Company in order to understand their gross margin contribution per 3D printer sold. We backed into what their customer acquisition cost (CAC) should be in order to scale their business profitability.
In another case, we partnered with a Software-as-a-Service (SaaS) Company that launched a consumer product 3 months earlier. We performed a retention rate analysis to understand how different retention rates influenced revenue in future years. We combined our analysis with other data points to create different scenarios for their Series A fundraising.
The Alluxo team works with founders and different leaders – from sales and marketing to product and accounting – to get a holistic understanding of the business.
To learn more about our financial consulting, contact us today for a free consultation.
Two decades ago, we saw the rise of software-as-a-service, a new type of software delivery. Software-as-a-service, commonly abbreviated to SaaS, frees the customer from having to worry about installing, provisioning, updating, and maintaining software.
SaaS allows software to be much cheaper, since the software developers only have to maintain a single version that all of their users. Software-as-a-service also opens the door to new types of software that would not be possible, but we'll touch more on that later.
The first users of SaaS software were enterprises and other large organizations. These companies were used to spending $100,000 or even $1,000,000 on traditional software and implementation, so making the shift to SaaS was relatively easy.
As the SaaS market matured and best practices emerged, developers created applications that were designed to be SaaS from day one. As a result, SaaS developers could target the small-to-medium-sized business (SMB) market for the first time.
From the early days of Salesforce and NetSuite, software-as-a-service has emegered as a prominent category. There has also been a standardization of how SaaS executive teams and investors evaluate SaaS businesses. That's where our financial consulting shines.
Alluxo offers consulting services for B2B SaaS companies that are looking to...
- Align their product roadmap with their strategic goals
- Define and track SaaS metrics like CAC, LTV, and churn
- Understand their monthly recurring revenue (MRR) cohorts
- Raise a Series A or create a 24-month budget after raising funds
After targeting SMBs, the SaaS deployment model was able to create a new wave of software for solopreneurs and consumers.
Apple introduced the iPhone in 2007 and the App Store in 2008. Fast forward ten years and there are over 2,000,000 mobile apps on the App Store (source).
Mobile apps and web apps are often powered by the same backend technology. Given the rise of APIs and microservices, it's possible for a development team to manage a single backend that can talk to applications on web, iOS, Android, and more.
While this is great for consumers, it can also introduce a number of challenges for business owners and managers.
First, it's very difficult to get a sense of how your business is performing when you have users on multiple platforms. The problem is made worse if you accept payments from different sources – like the Apple App Store, the Google Play Store, and Stripe payments via the web.
The right consultant needs to understand technology, product, and finance in order to put together these disparate pieces. And that's exactly what we do.
Alluxo offers consulting services for B2C SaaS companies that are looking to...
- Uncover their most effective user acquisition channel
- Combine and understand metrics across multiple channels
- Understand their monthly recurring revenue (MRR) cohorts
- How to create a narrative for their Series A or B fundraising
- Understand their competition and unique value proposition
Frontier tech refers to the cutting-edge of technical innovation, it's the next phase of technology that will permeate into the market.
3D printing, internet of things (IoT), artificial intelligence (AI), blockchain technology, drones, virtual reality (VR), and augmented reality (AR) all fall under frontier tech.
SaaS companies have very specific metrics that they can report. These "SaaS metrics" are well understood by startup founders, executives, investors, advisors, and board members.
Unfortunately, the same cannot be said for frontier tech. By definition, frontier technology companies are creating a new market or defining a completely new product in an existing market. As such, they need to be careful how they position themselves and how they track their progress.
Alluxo works with frontier tech executives to create the right strategy and framework for their unique company.
Alluxo offers consulting services for frontier technology companies that are looking to...
- Solve audacious problems in an existing, outdated market
- Report the performance of their combined offering (e.g., hardware + software)
- Track their progress towards long-term strategic goals
- Understand the unique value of their strategic position or data
- Generate multiple streams of revenue from their platform