Investing in SaaS - 4 of 6. How the pros do it.

One of the attractions of investing in a Software as a Service business are the efficiencies of scale they can offer.

Building the platform may take years, but once it is done, you can sell it again and again via subscription. According to Paul Wilson, co-founder and partner of Bailador Technology Investments Limited [ASX:BTI], this quality, along with the high gross margins this generates, combined with the low costs of new business, is what success in SaaS is all about.

Bailador Technology, founded by David Kirk and Paul Wilson, describes itself as a company which provides investors with exposure to expansion-stage technology companies with global addressable markets and a high growth trajectory. More on Bailador below.*

Of course there is no perfect strategy* to share market investing, let alone in the highly volatile disruptive technology sector.

Bailador Technology, founded by David Kirk and Paul Wilson, describes itself as a company which provides investors with exposure to expansion-stage technology companies with global addressable markets and a high growth trajectory.

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• Bailador is currently invested in ten companies with a total portfolio revenue of $232 million [year ended 30 June 2019]

• 30% portfolio company revenue growth [Based on revenues for year ended 30 June 2019 and weighted based on carrying value in the portfolio].

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*1 Motley Fool. 2 Livewire.

The InsideMarket Private Fund does not own shares in Bailador [ASX:BTI] at the time of publishing this post. We also have not received any payment from the company for this coverage. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.