Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. Thus the premium placed on NRR as a valuation metric.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

SaaStr

JULY 5, 2023

I like this chart a lot showing both the awesome power of high NRR, and also how you have to invest in customers that scale with you over time. High NRR is magical, but NRR as a metric isn’t a GAAP metric. And here you can see the magic in Mongo’s business model. Go long, invest long.

Scale 174

Scale cloud efficiency Cloud Business Model 174

SaaStr

MARCH 29, 2023

Seek ways to help others grow Damien uses what he refers to as the karma business model and suggests everything starts with sharing and giving. As a result, the karma business model is a virtuous cycle. Be clear on your north star metrics Both small and large companies face the tension of being pulled in all directions.

Sales Hiring 172

Sales Hiring Scale Strategy Metrics 172

Chaotic Flow

MARCH 25, 2014

My first serious lesson in the criticality of SaaS metrics was about six years ago when I was unexpectedly stumped in a board of directors meeting. At the time, SaaS investors and executives were still getting their heads around the SaaS recurring revenue business model, so there were very few resources to turn to for support.

Metrics 156

Metrics Business SaaS Scale 156

Tom Tunguz

AUGUST 26, 2020

Today, the company is a massively successful SaaS business and another example of the flywheel business model that creates demand at the individual user and leverages that interest to sell department and company-wide contracts. In this analysis, I’ve compared the metrics of the two companies at the time of IPO.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #2 – Growth Rate.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

ChurnZero

FEBRUARY 4, 2022

Customer Success Metrics that Your Investors and Board Care About. In this article, we share Kristen’s best advice on how you can use metrics to reframe your customer stories, so they’re primed for investor engagement. What metrics do investors care about? What metrics do your investors and board care about?

Customer Success 98

Customer Success Metrics Engagement Software Review 98

SaaStr

OCTOBER 17, 2022

If you’re only investing in sales and marketing, you’re missing a huge revenue opportunity. However, your business model will dictate how large the book of business is for each CSM. The 3 key metrics for Customer Success are GRR, NRR, and logo retention. NPS is a company metric, not a CS metric.

Customer Success 215

Customer Success Sales Hiring Scale Leadership 215

SaaStr

APRIL 14, 2023

Investors want to know about metrics, the drivers of your business, and whether users are growing, engaged, or churning. So if you’re trying to fit your business model into what SaaS looks like in the U.S. Create a full breakout plan first, then look back and figure out who will invest.

Development Team Review 211

Development Team Review Technical Review Underperforming Technical Team SMB 211

SaaStr

JUNE 20, 2022

As Allin explains, “In telling your story, [communicate] your thesis on why you think your company needs to exist, and why you think there is a huge market opportunity…[be] very clear about what your product currently accomplishes, the product roadmap that’s ahead, and the business model that you’re going to use to monetize that.”.

Venture Capital 187

Venture Capital Management Business Model Investment 187

OPEXEngine

AUGUST 31, 2021

Metrics for software-as-a-service (SaaS) companies can be more informative, and therefore more actionable, if they’re viewed in relationship to one another rather than in isolation, Christoph Janz, managing partner of Point Nine Capital, says. The post Usefulness of SaaS metrics lies in context, not isolation appeared first on OPEXEngine.

Metrics 52

Metrics SaaS Acquisition Business Model 52

ChurnZero

MARCH 18, 2022

With so many SaaS metrics floating around, and even more opinions on when and how to use them, it can be hard to know if you’re measuring what really matters. Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e.,

Customer Success 98

Customer Success Metrics SaaS Banking 98

SaaStr

MAY 25, 2022

Try not to limit your thinking to the economics your VCs want in business economics. No one built a business solely on metrics like TAT, LTV, etc., Investors will invest in your business if: You have a strong brand. The Sword: a product-led growth business. The Sword: a product-led growth business.

Scale 239

Scale Marketplace as a Service Business Model Advertising 239

User Pilot

MARCH 31, 2023

What user onboarding metrics should you track if you want to evaluate your onboarding processes? We all know that successful onboarding is especially important for SaaS companies since they depend on a subscription-based business model. Tracking the metrics helps you improve your onboarding process and retain more customers.

Onboarding 91

Onboarding Metrics Retention Scale 91

OPEXEngine

MAY 22, 2020

Here’s a shout out to Dave Kellogg’s Key SaaS Metrics podcast, recently released on Aznaur Midov’s SaaShimi series. Dave does a terrific job explaining the current state of the art on important SaaS metrics. The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts.

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

Tom Tunguz

JUNE 26, 2022

Their business models differ meaningfully. But revenue growth is more sensitive to market swings, the company discloses fewer operating metrics, and their token offers fewer rights than COIN stock. Coinbase and Uniswap generate billions in revenue. Coinbase’s trailing revenue in Q1 2022 approached $7.5b

Benchmarks 279

Benchmarks Headcount Government Business Model 279

User Pilot

AUGUST 6, 2023

Due to the necessity of data analytics when optimizing the omnichannel customer experience, you’ll have more metrics to work with. Having dedicated surveys for key metrics like CSAT, CES, and NPS. Don’t hesitate to adjust your strategy or even pivot your business model when necessary. Data-driven decisions.

Investment 89

Investment Banking Social Media Customer Lifetime Value 89

Chaotic Flow

MAY 13, 2014

Becoming a Metrics-driven SaaS Business is no easy task. However, the financial rewards of moving beyond standard SaaS financial metrics to SaaS customer success metrics and ultimately to sophisticated predictive analytics are significant. Each step toward SaaS metrics greatness builds upon the last.

Metrics 135

Metrics SaaS Compensation Benchmarks 135

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. For modern Software as a Service (SaaS) companies, the automobile is replaced by primarily digital and cloud-based solutions and software.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

SaaStr

NOVEMBER 30, 2023

There are five metrics ICONIQ feels are indicative of fundamental health regardless of stage, and so, while each one may not be directly tied to GTM health, they are all indirectly tied to it. Companies are moving up-market, investing more in marketing, and orienting all processes around efficiency.

Scale 224

Scale Sales Hiring Scaling Outsourced Development 224

Clouded Judgement

NOVEMBER 10, 2023

Either way - it’s clear these models are becoming cheaper and more effective, which is an exciting future for AI! I think we’re about to see an explosion of good business model AI applications in the near future. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

SaaStr

JUNE 17, 2023

In the ever-evolving landscape of SaaS, Venture Capital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. We’ll explain Jason’s take on the recent market fluctuations, highlighting major deals that shaped investment patterns and their effects on valuation trends.

Venture Capital 206

Venture Capital Scale Technical Review Software Review 206

SaaStr

JUNE 5, 2020

I argue that standard saas metrics make it possible for founders to scale using debt capital (production capital thats cheaper) instead of solely relying on venture capital (financial capital thats more expensive). . Salesforce’s IPO is also seen as a test of a new business model that could shake up the software industry.

Venture Capital 218

Venture Capital Technical Review SaaS Scale 218

SaaStr

NOVEMBER 25, 2022

They demonstrate spectacular growth and expansion while revolutionizing and disrupting industries with new business models. How Atlassian does business . The Atlassian business model is unique. Both partners need to consider cultural fit as a priority and ensure they are both invested in one another’s success.

Scale 214

Scale Scaling Marketplace as a Service Entrepreneurship 214

Stax

APRIL 18, 2024

While they operate under different business models, ISVs and SaaS share similarities in software development, cross-platform accessibility, and industry reach. ISVs and SaaS providers differ in software distribution, licensing models, hosting responsibilities, support options, upgrade and maintenance procedures, and scalability.

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

Valuize Consulting

FEBRUARY 3, 2022

Net Dollar Retention is the most important valuation metric in the technology industry. With all new and 80% of historical software vendors now operating on subscription-based business model (Gartner, 2018 ), the adoption of subscription and consumption revenue models has achieved dominance. NDR Is Your MVP.

Retention 52

Retention Metrics B2B Customer Success 52

SaaStr

MAY 4, 2021

You change / make up a new valuation based on how much the VC wants to invest. Don’t change the price, at least not explicitly, based on a VC saying they’d invest $Xm or $Xk. “Oh Oh if you want to invest $2m, then the price is $20m. You don’t know your core metrics fluently. This is subtle, but don’t do this.

Venture Capital 220

Venture Capital Investment Pricing Business Model 220

Andreessen Horowitz

SEPTEMBER 19, 2023

Investing in Instacart was perhaps the hardest decision I had to make as a venture capitalist. We pulled from my prior marketplaces experience and dove into their business quickly to develop a point-of-view on the opportunity. Beyond the metrics, co-founder and CEO Apoorva Mehta had great founder/product fit.

Marketplace as a Service 142

Marketplace as a Service Scale Underperforming Technical Team Construction 142

User Pilot

MARCH 25, 2024

Introduces key metrics that can affect your company’s value. Shows how to leverage PLG strategies to boost the value of your SaaS business. Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively. Let’s get to it!

SaaS 102

SaaS Customer Lifetime Value Acquisition Metrics 102

SaaStr

SEPTEMBER 16, 2022

However, global growth is challenging, and it takes the right strategy, preparation, and business model to achieve it. In an eye-opening session at SaaStr Europa 2022, Harry Briggs (Managing Partner at OMERS Ventures) shares advice for determining whether expansion is right for your business and how to execute it effectively. .

Scale 197

Scale Scaling Sales Hiring Marketing 197

Clouded Judgement

MARCH 31, 2023

How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. There are two main topics I’ve been pondering lately: Margins.

Cloud 130

Cloud Sales Hiring AI Headcount 130

Tom Tunguz

JANUARY 14, 2016

To sustain these growth rates, startups like these require lots of cash because of the customer acquisition payback period, and the more tenuous ones need capital to prove the business model actually works at scale. Third, VCs will not continue to raise near-record amounts of money. As demand falls, so will prices/valuations.

Startup 100

Startup Metrics Transportation Marketplace as a Service 100

OpenView Labs

MARCH 24, 2020

There weren’t any tried-and-true methods for measuring the health of a business with revenue that cost quite a bit of capital to acquire, and then paid itself back over long stretches of time with annual (or monthly) contracts. All of these metrics were different, but they had several things in common. Are there no new SaaS metrics?

Metrics 43

Metrics Scale SaaS Sales Hiring 43

SaaStr

SEPTEMBER 17, 2020

“Our journey with JFrog started back in November 2015 when I first met CEO and co-founder Shlomi Ben Haim and the JFrog team,” said Jai Das, who is the president and managing director at Sapphire Ventures , which participated in the $50 million Series C investment. “One But even more appealing was the product vision the founders outlined.

New CTO 204

New CTO CTO Benchmarks Consulting 204

SaaStr

JULY 27, 2023

SaaS as a vertical is a relatively attractive business model with high margins and recurring revenue, particularly valued in this market. Now, it’s closer to $2M, with many good funds investing between $2.5M Now, efficiency matters, and your burn multiple is an important metric. The reason? and $4M ARR. 1M revenue.

AI 177

AI Trends Banking Pricing 177

SaaStr

AUGUST 15, 2022

Sometimes you find that the customer is fond of your product while investors don’t want to invest because they don’t believe in it. That means that you have to find an investor who truly understands your business model and your challenges, supports you, and has invested in other companies in the same industry. .

Scale 186

Scale Marketing Scaling Communication 186

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. So they came up with a North Star benchmark, used it as a hurdle rate by channel, and any channels that hit that benchmark would justify a continued investment. It worked well for them.

Cloud 237

Cloud Payments Software Review Payment Solutions 237