article thumbnail

A $30B Software Company from a $15m Investment

Tom Tunguz

A former venture capitalist, Mark Leonard started Constellation in 1995 with $15m of outside investment & a goal of buying vertical software companies with a moat & good unit economics. Vertical software companies pursue a particular market segment like car dealership management or hotel management software. Acquisition.

article thumbnail

The 6 Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue

SaaStr

One of the biggest mistakes I see after $1m in trying to enter new market segments, new verticals, where you have zero traction. It’s one thing to invest in an area where only 5% of your business is today. Let me list some of the ones I see most often going from say $1m to $10m in ARR: Chasing the Shiny Penny.

Scaling 275
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Dear SaaStr: How Does a SaaS Startup Break Out in a Crowded Market?

SaaStr

They might give up on SMBs, or freemium, or higher churn segments. There can be room for a vendor focused just on e-commerce, or healthcare, or contact centers, or other large markets. Many Bigger Cos aren’t invested deeply in a particular platform. But you might be able to do well there. Or not even exist.

Startup 233
article thumbnail

Customer Segmentation Models: A Smarter Approach

Baremetrics

They offer marketers a gateway into the development of key strategies to improve return on investment. Sign up for a free trial with Baremetrics to see how easy it is to gain insights from customer segmentation. 1 What is Customer Segmentation? Value-based: This segment is grouped by the economic value the group seeks.

article thumbnail

Customer Segmentation Benefits to Optimize Your Marketing Strategy

Baremetrics

All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. 1 What is Customer Segmentation? 2 Pitfalls of Not Segmenting Customers 3 Benefits of Market Segmentation 4 How Baremetrics Helps. What is Customer Segmentation? start free trial.

article thumbnail

It’s Time to Raise Your Debt Facility: Execution Tactics for Founders

Andreessen Horowitz

For early stage companies, lenders are mostly underwriting based on existing investor support; with later-stage companies, they are underwriting to enterprise value and are more focused on company KPIs, churn, and related metrics. Even if the loan tape is small, it can be helpful to share monthly data.

article thumbnail

There’s more than one path to $100 million

The Angel VC

While this is generally true for most companies, it’s particularly true for SaaS businesses, which invest heavily in product development, sales, and marketing upfront and get payments from customers over a delayed period of time, usually several years. The main reason is that your customer acquisition costs are highly front-loaded.