Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. Altimeter is an investment adviser registered with the U.S.

Cloud 169

Cloud Software Benchmarks Retention 169

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Retention 161

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. The T2D3 model assumes significant investment upfront, requiring at least 20-30x valuations for these unicorns just to pay the investors back.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

Tom Tunguz

OCTOBER 21, 2017

Over that 20 year period, annual SaaS investment has increased 20x, peaking in 2014 at $7B. Segmentation - focus on SMB, Mid-Market, or Enterprise, to play where competition isn’t present. But it’s not the MRR milestones or the payback period benchmarks that have changed. Salesforce was founded in 1999.

SaaS 188

SaaS Venture Capital Finance Artificial Intelligence 188

OPEXEngine

JUNE 9, 2021

Comparing current benchmarks to pre-COVID-19 benchmarks. The results are in and we’ve published the latest benchmarks incorporating 2020 actuals in our platform. SaaS Revenue Growth Benchmarks Didn’t Change A Lot, Except for Zoom and Early Stage Companies. Remember this time, a year ago? in 2019 to 98% in 2020.

SaaS 52

SaaS Benchmarks Travel Entertainment 52

Tom Tunguz

JUNE 12, 2014

To answer those questions, I’ve pulled together data from a basket of 46 publicly traded SaaS/Cloud companies and segmented them based on their average annual customer value (ACV) into three buckets: SMB ( =$10k to $100k). The median SMB SaaS startup spends significantly less on sales and marketing through year 4 of their lives.

Startup 100

Startup SMB Sales Hiring Acquisition 100

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

Cloud 100

Cloud Scale AWS Artificial Intelligence 100

OpenView Labs

MAY 29, 2020

gross multiple of invested capital—buying SaaS equities after IPO and holding long term is foolproof.”. Permabull investors point to Workday as their overwhelming proof that SaaS is a guaranteed successful long term investment. “If you bought Workday right after IPO and held through today, you’d be sitting on 18.7% IRR and a 2.7x

Marketing 52

Marketing SMB Benchmarks Pricing 52

ChurnZero

DECEMBER 9, 2022

It can be hard to convince PE firms to invest in the customer. How did you get your PE colleagues to invest in the customer experience? We also measure NPS, and we benchmark that across all acquisitions. We had to say: what does SMB want? Q: FranConnect is owned by a private equity (PE) firm. We hire a third-party firm.

CTO Coach 52

CTO Coach Customer Success VP of Engineering CTO Hire 52

Sales Hacker

DECEMBER 5, 2022

After analyzing thousands of Outreach instances from SMB to enterprise, I’ve noticed I end up giving similar advice to many users. I’m creating a course to teach you everything you need to know to improve your numbers and get the most out of your Outreach investment. And here, for free, are my top 5 tips. Performance reports.

Scale 82

Scale Technical Review Systems Review Engagement 82

ChurnZero

JUNE 19, 2020

What data you need to get the investment in your Customer Success team. You Mon]: So, in other words, you don’t really take on clients who haven’t invested in that part of the organization. Q: What’s your investment stance on businesses that have a low CAC or lucrative affiliate model, but don’t have high retention?

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

OPEXEngine

FEBRUARY 22, 2022

SMB customers will want high-touch sales engagement and service delivery but SMM SaaS companies will likely not have the budget necessary to justify providing this level of sales support. Being “stuck in the middle” drives SMM SaaS companies to invest in one of two strategies. SMM vs. Enterprise SaaS Metrics.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

ChurnZero

MARCH 18, 2022

Their report shares the results from a survey of private SaaS companies which KBCM Technology Group’s software investment banking team conducted in June and July 2021. Their report shares the results from a survey of private SaaS companies which KBCM Technology Group’s software investment banking team conducted in June and July 2021.

Customer Success 98

Customer Success Metrics SaaS Banking 98

OPEXEngine

NOVEMBER 17, 2020

If you are an early-stage or growth SaaS company, most likely all your sales and marketing expenses are invested in acquiring new customers. I was speaking recently with a new FP&A director at a SaaS company, and we reviewed the company’s KPIs compared to benchmarks. As a SaaS company scales, your CAC components will change.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

SaaStr

FEBRUARY 14, 2024

They had to make tough choices about what teams they were investing in and dig into the existing employee base to see where there was an opportunity to shift direction. One thing that has positively changed for customer success, especially for the SMB-focused, is far larger onboarding teams. And that’s where AI comes in.

Customer Success 225

Customer Success Sales Hiring Scale AI 225

Sales Hacker

SEPTEMBER 11, 2018

What Data To Look At When You’re In Series A Investment [26:02]. Tomasz is a managing director at Redpoint Ventures, really well known in the SaaS world for a lot of the data and analysis he’s done, and for benchmarking great companies. He invests in early-stage software and infrastructure companies. The first is Aircall.

Scale 42

Scale SaaS Investment Construction 42

SaaStr

MARCH 1, 2019

As for Tom, he joined Redpoint in 2008 and has since led investments in Kustomer, Looker, Expensify, and Gremlin all prior guests on the show, I hasten to add. How does this differ when comparing enterprise to SMB? How does this differ when comparing SMB to enterprise? How does this differ when comparing SMB to enterprise?

Scale 114

Scale SMB Sales Recruiting Sales Hiring 114

SaaStr

JUNE 13, 2019

We invest from the very earliest stages to the latest stages of software and consumer companies and we’re based in California. And they were broken down roughly a third, a third, a third by targeting the SMB, the mid-market, and the enterprise. The first goal is to share with you benchmarks. What does this mean?

Scale 202

Scale SMB Sales Hiring Payment Services 202

OpenView Labs

DECEMBER 17, 2020

Four years ago, OpenView released the first annual Expansion SaaS Benchmarks Report in order to fill a critical data gap for SaaS founders and CFOs who had a lot of questions about optimal growth rates, burn levels, gross margins and other key data points. With this year’s SaaS Benchmarks Report, we can now validate that hypothesis.

Benchmarks 52

Benchmarks Scale SaaS Software Review 52

Chart Mogul

SEPTEMBER 15, 2023

5 Reasons I Hate the Rule of 40 by Mikael Johnsson, SaaS Nordic While not necessarily completely useless, I would strongly argue that R40 is a metric applicable to the world of PE and public markets investing and is not a good metric for assessing the quality of venture-stage companies. Because this drives investment decisions.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

SaaStr

NOVEMBER 1, 2019

They have funding from some of the best in the business including the likes of Benchmark, Sequoia, Redpoint and Marc Benioff, just to name a few. As for Chetan, he focuses on enterprise software and has made investments in MuleSoft, MongoDB, Elastic, Heap, just to name a few. When is the right time for this transition to take place?

Technical Review 142

Technical Review Development Team Review Scale Software Review 142

SaaStr

NOVEMBER 19, 2019

It’s a global technology focused investment firm. So I went down the hall, met with the head of marketing, and I discovered a lot about in bound SaaS, about SMB, the importance of building this machine as I call it now that generates all these lovely leads. In fact, we were below benchmarks for SaaS companies.

Scale 169

Scale SMB VP of Engineering Leadership 169

SaaStr

MARCH 12, 2019

Prior to their IPO, New Relic raised over $214m in funding from some of the best in the business including Benchmark, Insight Venture Partners and Blackrock, to name a few. How can founders know when is the right time to make the move from SMB to enterprise? Why does Erica believe that enterprise is a “company sport?”

Scale 161

Scale Enterprise Scaling Sales Hiring 161

SaaStr

JANUARY 3, 2020

As for Tom, he joined Redpoint in 2008 and has since led investments in Kustomer, Looker, Expensify and Gremlin all prior guests on the show I hasten to add. How does this differ when comparing enterprise to SMB? How does this differ when comparing SMB to enterprise? How does this differ when comparing SMB to enterprise?

SMB 26

SMB Sales Recruiting Sales Hiring Scale 26

OPEXEngine

SEPTEMBER 10, 2020

This seems to be especially true for companies selling in the SMB space as compared to large enterprise customers. If you didn’t invest time over the summer to improve your budgeting and planning processes, do it now. We will be doing an update of our 2020 benchmarking in the next month – stay tuned to find out more.

Payment Services 59

Payment Services SaaS Payments Trends Payment Solutions 59

SaaStr

JULY 26, 2019

How does this make Eric change the way he approaches benchmarking, capital allocation, and growth? She likes to invest across consumer, B2B saas, and technology infrastructure companies at the earliest stages. ” Is it SMB or is it Enterprise? Then, you can decide, is it a high volume play in the SMB?

Sales Hiring 141

Sales Hiring Scale SaaS Payments Payment Services 141

OpenView Labs

OCTOBER 21, 2019

That’s why I think the best way to define an enterprise deal is actually not by any particular “benchmark” but by its level of complexity and the mindset required to execute it. SMB vs. Enterprise vs. Mid-Market. The SMB Deal. The SMB deal boils down to “you build it, they buy it.”. The Enterprise Deal.

Sales Hiring 40

Sales Hiring Enterprise Scale SMB 40

SaaStr

JULY 30, 2020

How does this differ between SMB and enterprise? Something that we did really poorly at TalentBin early on was not really focusing on a very crisply defined ICP and insufficiently investing in customer success. This is why you see SMB focused sales organizations like Zenefits, or Yelp, or Yaxed, or what have you.

Part-Time VPE 194

Part-Time VPE Scale Sales Recruiting Sales Hiring 194

Sales Hacker

NOVEMBER 15, 2017

interested about a company or brand and invested in its success because of its perceived relevance and benefits to the audience. . Product Qualified Lead (PQL) is a potential customer who meets a set of predefined criteria and have used a benchmark product(s), indicating a relatively higher likelihood of making a purchase.

Scale 99

Scale Payment Methods Sales Recruiting SaaS Payments 99

Intercom, Inc.

JUNE 6, 2019

But how do you decide when to build an app for your product and what platforms to invest in? MadKudu invested in integrations in order to unlock real-time access to customer data, which is key to their product’s success. I invited Liam Boogar-Azoulay who heads up marketing at MadKudu to share his experience. Short on time?

Scale 190

Scale Branding Underperforming Technical Team Enterprise 190

SaaStr

AUGUST 15, 2020

It doesn’t take the massive amounts of infrastructure investment that it required before. We are still heavily oriented to SMB and to entrepreneurs. We will do some support work, some aggregate benchmarking, things like that, that we can provide. You say that Shopify is an SMB customer when I see 29%.

Payment Methods 190

Payment Methods Merchant Services Scale Payments 190

OPEXEngine

MAY 12, 2020

Management teams are learning that revenue doesn’t just “recur” —they need to invest to make it so. We surveyed CXOs of late-stage private and publicly-traded SaaS companies and found that nearly every company projects Gross Renewal Rates going down, including the companies that sell to large enterprises with typically stickier offerings.

Technical Review 59

Technical Review SaaS Software Review Sales Hiring 59

Sales Hacker

DECEMBER 15, 2020

Upon reflection, being bootstrapped for the first three years of our business really helped us build that culture of customer centricity and really being disciplined about how we made investments, making sure that every piece of software we wrote, everything we put on the website was adding value. It goes down to mid-market and SMB as well.

Scale 83

Scale Technical Review Software Review Systems Review 83

SaaStr

OCTOBER 11, 2019

To date, Asana has raised over $210m from some of the biggest names in tech including Mark Zuckerberg, Peter Thiel, Marc Andreesen, Ben Horowitz, Sean Parker, Ron Conway, Benchmark, Founders Fund and more incredible names. I did a short tour through investment banking where, like I say, I learned math. Loving our podcast content?

B2C 133

B2C Technical Advisors Sales Hiring Branding 133

Sales Hacker

OCTOBER 7, 2021

Invest in your development internally and externally. Find a company that will allow you to be your best professional self and also invest in your personal life – it doesn’t have to be one at the expense of the other! Invest in your cross-functional partners. Invest in a coach. Build allies and ask for help. Hang Black.

Scale 130

Scale Sales Recruiting Sales Hiring VP of Engineering 130