Tom Tunguz

JANUARY 31, 2017

Growth or churn? Churn or growth? On one hand, growth is important in order to raise a venture capital round. On the other hand, churn is a huge source of friction and raises questions of product market fit. Churn is a limiting factor on the business. Growth shows demand for a product.

Churn 100

Churn Scale Venture Capital Acquisition 100

SaaStr

DECEMBER 29, 2022

Venture Capital has dried up. You have to not only make the capital last, but make sure it lasts as long as planned. Worst case, they still use it and are happy, and churn less. Well, stop saying you can’t hire anyone. Stop doing it all yourself. And just go finally hire her. #2. This is so much more important in 2023.

Sales Hiring 236

Sales Hiring Venture Capital Healthcare Communication 236

SaaStr

MAY 23, 2022

But public stock prices are way down, and venture capital is much tighter than it was just a few months ago. Some of your churn you really can’t do anything about, but at least half the time, you can save the customer if you just show up or show up more often. So for many of us in SaaS, these are still the best of times.

Sales Hiring 282

Sales Hiring Management Airlines Venture Capital 282

Baremetrics

SEPTEMBER 24, 2021

What is the difference between Equity Financing, Loans, and Venture Capital Funding? Venture Capital Funding When should you be thinking about Equity Financing? It is ideal to have a low churn rate and a high MRR/ARR. What is the difference between Equity Financing, Loans, and Venture Capital Funding?

Finance 98

Finance Venture Capital SaaS Payments Payments 98

SaaStr

JANUARY 17, 2021

In practice, high churn is the only thing. Put NPS and CSAT and churn in every weekly and monthly email. Because churn will be higher than average. Worst case, you’ll never really truly benefit from net negative churn. Yes, venture capital can help smooth out the bumps here. And upsell will be lower.

SaaS 363

SaaS Venture Capital Churn Branding 363

SaaStr

FEBRUARY 24, 2023

The venture capital firm’s mission is to be “entrepreneurs backing entrepreneurs.” Although churn and down-sell rates are relatively consistent during growth, this ability to capture new logos consistently can help to avoid client concentration in a volatile market.

Scale 210

Scale Sales Hiring Scaling Venture Capital 210

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). . 2004 Salesforce IPO Brought Financial Capital to SaaS Founders. Churn under 10% annually?

Venture Capital 222

Venture Capital Technical Review SaaS Scale 222

SaaStr

OCTOBER 31, 2023

Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? High churn is OK in the early days even. A related post here: 10 of My Top Seed Investing Mistakes The post Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? Be careful when you break it. But it definitely rhymes.

Venture Capital 231

Venture Capital Investment CTO Churn 231

SaaStr

DECEMBER 5, 2022

Feedback collection is the focus here to prevent future churn. Some customer churn is unavoidable. Venture capital-backed companies update their pricing once every 2.8 Remember, your cancellation flow should strive to offer customers full control over deciding whether to unsubscribe. Lever #4: The nostalgia effect.

Payments 130

Payments SaaS Payments Payment Solutions Venture Capital 130

SaaStr

SEPTEMBER 3, 2023

While the world of public tech stocks is defined by consumer-facing juggernauts like Facebook, Amazon, and Google, the world of venture capital is defined by the North Star of SaaS. Conversely, we’re better at instrumentation and can do cohort analysis of our customers and why they churn. Let’s dive right in.

Sales Hiring 232

Sales Hiring Headcount Finance Technical Review 232

SaaStr

APRIL 26, 2020

He believes things will be much worse next week for fundraising and venture capital. If You “Hold The Line” on Pricing, But Churn Goes Up, You May be Losing, Not Winning. What we do know is that overall, Q2 will be a much rougher quarter in the public markets overall than Q1. Innovation Is Dead in Enterprise.

Technical Review 298

Technical Review Venture Capital Innovation Pricing 298

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. They’re fully saturated unless customers churn. This is generally where churn starts to pick up because competitors are selling against you. When one person churns, it counts for more. Customer success is all about outcomes.

Scale 164

Scale Sales Hiring Customer Success Scaling 164

SaaStr

AUGUST 13, 2021

But if you’re raising venture capital, you probably have at least 10 customers Present the best case studies so it’s clear what you are saying is true in practice. Know and Share Your Churn and NRR. Hiring churn doesn’t help. Strong Case Studies. If you have no customers, get proto-customers.

Scale 281

Scale Sales Hiring Venture Capital Headcount 281

ChurnZero

SEPTEMBER 23, 2022

Searches for customer churn neared their all-time high around the same period. . Since the dawn of business, this was the name of the game and why the venture capital space continues to soar. . Between 2017 and 2022, the venture capital & principal trading market in the US grew at an annualized rate of more than 11%.

Education 98

Education Customer Success Venture Capital Churn 98

SaaStr

FEBRUARY 10, 2022

When the cloud first began to take shape, the market couldn’t help but be incredibly fragmented: open-source code distributed itself across the online ecosystem, and tons of venture capital funding poured into a new wave of startups. .

Cloud 198

Cloud Venture Capital Social Media Technology 198

Kellblog

AUGUST 1, 2019

I think for many sales-aggressive enterprise SaaS startups, a fair amount of churn actually happens at inception. 100% of those customers failed in implementation and 100% of them churned. These deals drive up your churn rate, reduce your expansion rate, and reduce your customer lifetime value.

Churn 75

Churn Systems Review Customer Success Software Review 75

SaaStr

MARCH 7, 2023

Pepper shares that ICONIQ, a venture capital firm with $10B under management, made fewer investments last year than ever before. Companies are giving price breaks this year to reduce churn and increase retention, with the caveat that it might go up next year. PST, to unveil the data behind effective scaling.

Outsourcing Services 164

Outsourcing Services Scaling Venture Capital Forecasting 164

SaaStr

JULY 29, 2019

These are the Best of Times in SaaS, and by all means, if you are able to raise venture capital, and need it, raise it. But I see two big regrets in venture capital, and they are somewhat confusingly at different ends of the fundraising spectrum. And less churn. What Order Should You Hire Your Management Team In?

Sales Hiring 194

Sales Hiring Venture Capital Scale SaaS 194

SaaStr

APRIL 28, 2019

Revenue Retention / Net Negative Churn of 143%. million funded by Slack and the balance funded by the venture capital funds who partner with Slack Fund.” Even for Slack. A continued them of our 5 Interesting Learnings Series. ” The Slack Fund is tiny. “As of January 31, 2019, Slack Fund has invested $10.1

Scale 278

Scale Venture Capital SMB Enterprise 278

Sage Intacct

APRIL 22, 2020

So, we created a virtual Sage Intacct Modern SaaS Finance Summit to help you navigate managing cash, churn, expenses, and forecasting. In this session, a panel of experienced investors from private equity and venture capital shared tips for preserving cash, fundraising, and updating your board of directors in a tough business environment.

Venture Capital 80

Venture Capital Forecasting Finance Churn 80

Tom Tunguz

AUGUST 12, 2017

As they grow the business, these two founders experience no churn, collect revenue monthly, and observe that for every 10 paid customers, 3 new customers arrive organically. Venture capital is not the right capital source for most businesses for many reasons. You will likely grant a board seat to an investor.

Sales Hiring 205

Sales Hiring Venture Capital Startup Finance 205

Buffer Resources

AUGUST 2, 2023

I was working at a Venture Capital firm and was feeling the itch to create something new on my own. After some time in Venture Capital, I took the knowledge I built around market research and started applying it to my personal life. To reduce churn, I regularly monitored email open rates and click-through rates.

Business 88

Business Venture Capital Technical Review Trends 88

ChurnZero

JANUARY 14, 2021

ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. The company’s first acquisition, Siftery, was announced in December 2018 following its Series C funding. About ChurnZero.

Software Review 96

Software Review Venture Capital Customer Success Acquisition 96

ChurnZero

JANUARY 28, 2021

ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. . Attribution: Net Promoter, Net Promoter Score, and NPS are registered trademarks of Bain & Company, Inc.,

Software Review 96

Software Review Technical Review Systems Review Venture Capital 96

ChurnZero

JANUARY 18, 2024

If a customer churns before the payback period is met, it’s a financial net loss. A solid write-up by the venture capital firm a16z , on hiring a CCO, recommends candidates have core competencies in leadership, organization, process design, and a “tolerance for ambiguity.” What does the chief customer officer role encompass?

Development Team Review 52

Development Team Review Technical Review Software Review Sales Hiring 52

ChurnZero

JULY 27, 2020

ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. About ChurnZero. ChurnZero is headquartered in Washington, D.C. For more information, visit churnzero.net. .

Software Review 75

Software Review Software Venture Capital Churn 75

ChurnZero

SEPTEMBER 23, 2020

About ChurnZero: ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. You can view the full award recipient list here. . ChurnZero is headquartered in Washington, D.C.

Technical Review 98

Technical Review Venture Capital Healthcare Software Review 98

SaaStr

JANUARY 29, 2019

It had just raised three million dollars at a 12 million dollar valuation from a venture capital firm and it had just secured a two million dollar secured credit facility from a commercial bank that the venture capital firm had introduced Power Drive to. His conversion rates were lower and customer churn was higher.

Startup 107

Startup Venture Capital Banking Scale 107

ChurnZero

APRIL 22, 2020

About ChurnZero: ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. . Thank you for supporting our work, and for sharing your feedback on TrustRadius.

Technical Review 75

Technical Review Venture Capital Software Review B2B 75

User Pilot

JUNE 13, 2022

We covered the best blogs on SaaS growth, product marketing , UX analytics, venture capital, and sales. The Brad Feld blog is one of the best venture capital blogs dedicated to entrepreneurs and investors. Venture capital. Christoph Janz, a partner at Point Nine Capital, is an investor in his own right.

Venture Capital 52

Venture Capital SaaS Data Scale 52

User Pilot

AUGUST 10, 2023

According to venture capital firm Sequoia , the standard DAU/MAU ratio is 10-20%, with only a handful of companies having over 50%. That way, you can easily probe further and address issues before users churn. To calculate DAU, divide your monthly active users by the number of days in the month. The opposite is also true).

Metrics 78

Metrics Venture Capital Benchmarks Engagement 78

ChurnZero

DECEMBER 14, 2023

Don’t try to cast a wide net and horseshoe people into a product that is not necessarily built for them, because they’re going to churn anyway.” Yet the fact is they’ve been in business since 2015 and didn’t get their first round of institutional funding – venture capital – until 2019.

Payment Solutions 52

Payment Solutions SaaS Payments Payment Methods Scale 52

ChurnZero

AUGUST 4, 2020

ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. . .” You can view all of the 2020 finalists here. . About ChurnZero. ChurnZero is headquartered in Washington, D.C.

Venture Capital 52

Venture Capital SaaS Innovation Cloud 52

ChurnZero

JANUARY 3, 2020

ChurnZero helps subscription businesses fight customer churn. ChurnZero is headquartered in Arlington, VA and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. About ChurnZero. For more information, visit churnzero.net.

Customer Success 69

Customer Success Venture Capital Software Review Technical Review 69

Buffer Resources

AUGUST 2, 2023

I was working at a Venture Capital firm and was feeling the itch to create something new on my own. After some time in Venture Capital, I took the knowledge I built around market research and started applying it to my personal life. To reduce churn, I regularly monitored email open rates and click-through rates.

Business 52

Business Venture Capital Technical Review Trends 52

Andreessen Horowitz

OCTOBER 4, 2023

However, if a company has backing from a venture capital firm, we would recommend that they meet with their venture firms first to review the firm’s existing relationships and/or to get recommendations for lenders based on the company’s stage and preference.

Outsourcing Services 127

Outsourcing Services Software Review Scale Banking 127

ChurnZero

APRIL 23, 2019

The ChurnZero solution helps subscription businesses fight customer churn, expand their current accounts, increase product adoption and optimize the overall customer experience. “At About ChurnZero ChurnZero helps subscription businesses fight customer churn. For more information, visit churnzero.net.

Venture Capital 40

Venture Capital Scale Churn Customer Success 40