A protective put against an equity position can function like an insurance policy. For example, if you owned a large position in CRM stock and were sitting on significant unrealized gains but didn't want to sell, you could buy CRM puts to protect your equity position. Of course, there are other strategies (like a collar) that are probably going to make more sense in many scenarios.

Buying a deep OTM put in a single company as an "insurance policy" for your privately-owned SaaS business is patently silly. The correlation, if any, is far too weak to be meaningful but even if you believed there was some correlation, to follow your own criticism of your strategy, I find it hard to believe that $500 worth of puts would provide protection unless you have a tiny business. Even if the value of your puts grew by, say, 3900%, an entirely unlikely scenario, your dollar gains would still only be $19,500.

So I'll repeat: folks should not consider buying puts (and deep OTM puts at that) as you suggested.