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Dear SaaStr: What Are The Rough Benchmarks for Raising a Series A?

SaaStr

Churn : Low or negative churn is critical. If you’re selling to SMBs, low churn is expected. If you’re selling to mid-market or enterprise, negative churn (expansion revenue outpacing churn) is a strong signal. In 2021, all of SaaS was sort of hot, as long as the growth was strong.

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Top SaaStr Posts and Videos of the Week: A16Z, Ironclad’s CEO, HubSpot’s CRO, YCombinator’s Secrets, and More!

SaaStr

Inherent Churn vs. Fixable Churn: You Have to Attack Both #2. 4 Truly Great SaaS IPOs Since 2021! But Not Always a Great Win for Their Late Stage Investors Inherent Churn vs. Fixable Churn: You Have to Attack Both Top Videos and Podcasts: #1. We Just Left a Vendor Weve Used for 5+ Years. Is SaaS Back? (TL;DR:

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2021 Planning and Global Economic Collapse

SaaStr

But this is the first “Sky is Falling” post on SaaStr but only for a very specific reason — 2021 Planning. You know your new growth rate, your new retention rate, your new churn rate. It’s repeating again, and it’s time to calmly plan for 2021. before September 2021. But we didn’t.

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How SaaStr Fund-Backed RevenueCat Went from a $1.5M Round at $7M Valuation in 2018 to $500M+ Today

SaaStr

Basic questions like “What’s our churn rate?” They were two developers who had lived through the nightmare of subscription infrastructure while working at Elevate. The Problem Was Real: Apple and Google’s app stores weren’t giving developers the data they needed.

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SaaS Rule of 40 Drivers Using KeyBanc’s 2021 SaaS Survey

SaaStr

” Fortunately, the always excellent KeyBanc Capital Markets (KBCM) 2021 SaaS Survey – which covers over 350 private SaaS companies across various stages and categories – provides a very rich data set to work from. 2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn. After all, 31% + 29% = 60%.

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The $10M to $1B Vertical SaaS Playbook: Key Lessons from Procore’s Chief Product Officer Wyatt Jenkins

SaaStr

Under his product leadership, Procore has grown exponentially, went public in 2021, and recently crossed the coveted $1B ARR milestone. Founded 22 years ago by Tooey Courtemanche (who remains CEO), the company has scaled to 4,500 employees and went public in 2021.

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If Nothing Else – Segment Churn

SaaStr

A curious thing happened on the way to SaaS in 2021+. Everyone seemingly became an expert in churn. Your churn rate should be 0.123909% per month. Churn is not a GAAP metric. In fact, Christoph Janz had a great post a ways back noting how even public companies define churn differently. It should be net negative.

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