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But just how does one achieve rapid growth in a SaaS business while maintaining capital efficiency?
The belief at YL Ventures is that SaaS is the perfect model for selling software to enterprises while maintaining capital efficiency," Leitersdorf tells TechCrunch.
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The interest stream is consistent with maintaining capital intact, and can be considered true income.
"But capital spending has become efficiency spending and companies may decide to maintain capital expenditures this time and cut the labor force instead".
It also gives them the flexibility to maintain capital spending.
We focus on opportunities where information technology and the internet can create value in large-scale markets while maintaining a high degree of capital efficiency".
Then the talk was of capital "efficiency".
"The prevailing metric now is capital efficiency," Mr. Cowan said.
And in long-term performance programs, several companies added capital efficiency measures to their benchmarks.
Incredible capital efficiency.
JJ: Capital efficiency is our core thesis.
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