Tom Tunguz

DECEMBER 13, 2022

In the 2000s, when capital was scarcer, founders & VCs would derive round size by debating the quantum of money required to achieve Series B milestones. When capital is scarce, it’s rationed. In the 2010s, US venture capital grew 40x in 10 years. In 2021, employment costs per capital increased to roughly $200k.

Headcount 305

Headcount Venture Capital Finance Startup 305

User Pilot

AUGUST 10, 2023

Tracking your product’s DAU, WAU, MAU metrics will provide insights into user engagement and how well your tool is performing. This article shows you the right way to measure those metrics. According to venture capital firm Sequoia , the standard DAU/MAU ratio is 10-20%, with only a handful of companies having over 50%.

Metrics 70

Metrics Venture Capital Benchmarks Engagement 70

Tom Tunguz

AUGUST 26, 2023

Klaviyo is a customer data platform company which ingests marketing data & empowers their customers to automate their marketing with data & AI. The company raised $455m in venture capital, but has used only $15m, growing nearly entirely on profits. For 2022, approximately 10.6% Est. Sales Efficiency 1.04

Benchmarks 172

Benchmarks Venture Capital Marketing SMB 172

Sales Hacker

MAY 28, 2024

Prior to joining Demandbase, Kelly honed her start-up skills as the first CMO at HYCU, a series B, venture capital-backed data protection SaaS company. How to create alignment and shared metrics between sales and marketing teams. 30:15 – Pillar 2: Creating shared metrics for sales and marketing alignment.

Revenue 85

Revenue Venture Capital Strategy Marketing 85

Tom Tunguz

AUGUST 26, 2023

Klayviyo is a customer data platform company which ingests marketing data & empowers their customers to automate their marketing with data & AI. The company raised $455m in venture capital, but has used only $15m, growing nearly entirely on profits. For 2022, approximately 10.6% Est. Sales Efficiency 1.04

Benchmarks 158

Benchmarks Venture Capital Marketing SMB 158

Tom Tunguz

MAY 23, 2021

Rather than burn dictating when to raise capital, founders elect to raise when inbound interest arrives, or immediately before launching to sell the dream rather than the metrics, or at other strategic inflection points. Many run auctions effectively, and pick the right partner conducting similar diligence to the investors themselves.

Software Review 364

Software Review Venture Capital Cloud Pricing 364

SaaStr

NOVEMBER 17, 2022

The Bank also offers venture banking products including a comprehensive suite of financial services focused on entrepreneurial and venture-backed businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States.

Banking 230

Banking Payment Features Venture Capital Subscription 230

Kellblog

OCTOBER 30, 2022

Unlike Meritech Public Comps , where you can see metrics for the best [1], public SaaS companies, this private company data is somewhat harder to come by (the only other source that springs to mind is RevOps Squared ) and, for most of us, it provides much more realistic comparables than Meritech [2]. Grab yours here.

Metrics 134

Metrics SaaS Benchmarks Churn 134

SaaStr

JUNE 20, 2022

Logan Allin, Managing Partner at Fin Venture Capital, has reviewed hundreds of deck submissions and shares the secrets to crafting the perfect presentation to win over investors. metrics, and what value-add your VC gives the company. Allin points out, “Capital for the best entrepreneurs is a pure commodity. MoM Growth.

Venture Capital 198

Venture Capital Management Business Model Investment 198

SaaStr

APRIL 8, 2021

A few thoughts if you haven’t raised venture capital before: 1. Be extremely transparent and data-driven. And get them detailed Board packs and metrics at least 3 days before each Board meeting. Share everything, at least, share all metrics and data. Remember you have to prove yourself, still.

Venture Capital 222

Venture Capital Management Metrics Data 222

Baremetrics

APRIL 23, 2021

Check out our post on 30 SaaS founders on raising money and venture capital. To automate your reporting with clear data visualization, get started with a 14-day free trial of Baremetrics. Manually calculating LTV can be difficult because there are multiple data points and a large number of transactions involved.

Metrics 71

Metrics Customer Lifetime Value SaaS Venture Capital 71

Clouded Judgement

JANUARY 12, 2024

If we rewind the clock back to 2021, the venture funding market went crazy. I pulled some data from Pitchbook that you can see below (screen was for US based companies that they categorize as “software”). I hope this post provides a bit of a cautionary tale of raising a mega round ahead of your metrics.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

SaaStr

JUNE 5, 2020

Few folks have more data than Nathan Latka and he offers up some insights on how to properly leverage up in SaaS. Carlota Perez argues in her book Technological Revolutions and Financial Capital that in the early days of a “golden age”, financial capital is necessary to fuel new technology innovation. . — ed.

Venture Capital 218

Venture Capital Technical Review SaaS Scale 218

Baremetrics

SEPTEMBER 24, 2021

Baremetrics is a business metrics tool that provides 26 metrics about your business, such as MRR, ARR, LTV, total customers, and more. What is the difference between Equity Financing, Loans, and Venture Capital Funding? Venture Capital Funding When should you be thinking about Equity Financing?

Finance 98

Finance Venture Capital SaaS Payments Payments 98

User Pilot

JUNE 13, 2022

We covered the best blogs on SaaS growth, product marketing , UX analytics, venture capital, and sales. The Signal by Mixpanel is all about using data to build better products and help you convert, engage, and retain more users. The Brad Feld blog is one of the best venture capital blogs dedicated to entrepreneurs and investors.

Venture Capital 52

Venture Capital SaaS Data Scale 52

SaaSOptics

JULY 7, 2022

The State of VC Funding in Europe: How to Raise Capital. So, you’ve decided on European venture capital to scale your SaaS. . Even after all that hard work, without capital to scale your idea, your progress could screech to a halt. Compared to the United States, venture capital in the EU is still very new. .

Venture Capital 79

Venture Capital Scale Sales Hiring Technical Review 79

SaaStr

JUNE 30, 2023

You need to parse through the vanity metrics and figure out what will endure. When I look at the purpose of venture capital, it’s not to burn a dollar five in order to grow a dollar of revenue,” says Magnuson. They were building for a market that didn’t exist so they could sell to job titles that also didn’t exist.

Scale 199

Scale Mobile Venture Capital Scaling 199

Tom Tunguz

NOVEMBER 9, 2015

The rest of the data points I gathered from press about Atlassian. These metrics simply unheard of. The data makes clear that Atlassian employs a fundamentally different go-to-market than the classic sales development rep to inside sales model championed by books like Predictable Revenue and popularized by Salesforce.

Benchmarks 117

Benchmarks Metrics Venture Capital SaaS 117

SaaStr

FEBRUARY 22, 2023

Worth hiring a sales team, raising some venture capital (even a modest amount). And I can say now, looking at 30+ venture investments, the ones where TAM held them back, in the end, were ones where they couldn’t really do the above analysis. And so it is, although we didn’t capture 100% of it.

Scale 205

Scale Sales Hiring Venture Capital AWS 205

ProfitWell

MARCH 17, 2020

Raised venture capital for his previous startups (Flowtown and Clarity). Funnel metrics. Next up—funnel metrics. That’s why funnel metrics are so important. Funnel metrics entail holding other teams accountable to ensure everyone is hitting their targets. An investor in 40+ startups.

Metrics 59

Metrics Venture Capital Forecasting Consulting 59

Point Nine Land

JULY 12, 2021

The challenge is that no single metric is very meaningful if considered in isolation , which is why my answer to these questions usually starts with “it depends”. We can call that the Goldilocks Zone of SaaS Metrics¹?. For example: A lower trial-to-paid conversion rate is OK if you’re attracting huge numbers of trials at a low cost.

Metrics 69

Metrics SaaS Churn Acquisition 69

SaaStr

APRIL 28, 2019

With Slack’s IPO data and financials finally public, what is left to know about the app we all use and have been reading about for years? million funded by Slack and the balance funded by the venture capital funds who partner with Slack Fund.” Slack is obviously a rocketship going from $0 to ~$600m+ ARR (!)

Scale 278

Scale Venture Capital SMB Enterprise 278

SaaStr

MARCH 15, 2021

“The 5 Metrics You Should Track to Maximize Your Company’s Valuation with Thomas Tunguz of Redpoint Ventures” This fun, informal session with Thomas (and pinch-hitting from Jason Lemkin during an IT glitch) was a great deep dive into where SaaS is, right now. #2.

Cloud 139

Cloud CTO Scale Venture Capital 139

SaaStr

JANUARY 17, 2021

I don’t have all the data. Make measured customer happiness one of your very core metrics at the company. Yes, venture capital can help smooth out the bumps here. But I’ve now looked into almost 20 SaaS companies that stalled out somewhere in the $20m-$40m ARR range. And I’ve found an obvious pattern.

SaaS 363

SaaS Venture Capital Churn Branding 363

SaaStr

MARCH 22, 2023

Customers’ data architectures today are an incredible mess with massive amounts of legacy. Customers were going to virtualize data centers, and you want to position yourself in that kind of inevitability. Is there a big Total Addressable Market? Does this market need disruption? Is it particularly inefficient? It was inevitable.

Scale 198

Scale Scaling AWS Sales Hiring 198

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 196

Cloud Venture Capital Social Media Technology 196

Tom Tunguz

OCTOBER 12, 2014

WorkDay envisions being the place of record for all Human Resources data for companies with more than 5,000 employees. WorkDay deploys its professional services teams at the outset of a customer’s engagement with WorkDay when all the systems integration and data processing must be completed.

Benchmarks 109

Benchmarks Deferred Revenue Venture Capital Outsourced Development 109

SaaStr

MARCH 7, 2023

PST, to unveil the data behind effective scaling. Pepper shares that ICONIQ, a venture capital firm with $10B under management, made fewer investments last year than ever before. A Look Back At 2022 Performance ICONIQ Growth leverages quarterly operating and financial data from 92 enterprise SaaS companies.

Outsourcing Services 161

Outsourcing Services Scaling Venture Capital Forecasting 161

Tom Tunguz

OCTOBER 21, 2017

The fourth has the starkest data. I’m using SaaS seed rounds as a proxy metric. I believe competition is a major driving force, especially since venture capital is conspicuously copious. I’ve observed all these trends in the last few years. SaaS company formation has fallen by 44% in the last 3 years.

SaaS 187

SaaS Venture Capital Finance Machine Learning 187

Chart Mogul

JUNE 13, 2018

“I think the table stakes have gone up in the sense that if in 2018 you’re not on top of these metrics, I’m less patient — there’s no excuse for not knowing this.”. Christoph Janz ( @chrija ) is managing partner at Point Nine Capital — a venture capital firm that’s highly prevalent in the world of SaaS.

Venture Capital 40

Venture Capital Startup Data SaaS 40

SaaSOptics

JUNE 24, 2021

In a recent webinar, SaaSOptics CEO Tim McCormick and Bigfoot Capital CEO Brian Parks discussed the changes that have taken place across the SaaS financing landscape, particularly those in debt financing of SaaS companies. . As a debt lender, Bigfoot Capital CEO Brian Parks takes a data-driven approach to choose partnerships to pursue.

Finance 59

Finance Venture Capital SaaS Banking 59

SaaSOptics

DECEMBER 7, 2021

They shared their experiences and insights into the importance of good data hygiene, how it impacts forecasting and funding, and using industry benchmarks to determine valuation. The key to pitching to potential investors is to present your story and back it up with data. “A It must be as concrete, and data-focused as possible.”.

Benchmarks 77

Benchmarks Scale Venture Capital Outsourced Development 77

SaaStr

NOVEMBER 1, 2019

Why are metrics so important? Why does Steve believe that ARR is not the leading metric? What metrics should early stage SaaS founders really be prioritizing? #6: Host Analytics CEO Dave Kellogg on Why CAC/LTV Is The Most Important Metric In SAAS. What does David believe is the single most important metric in SaaS?

Technical Review 147

Technical Review Development Team Review Scale Software Review 147

SaaStr

NOVEMBER 12, 2019

We raised $0 of venture capital. ” Now, seven years later, SalesLoft has over 400 employees, has raised over $75 million of venture capital, and in the next two years, if not sooner, my prediction is that they will be a unicorn that you’ll be able to read about on Tech Crunch. We started the business in 2007.

Sales Recruiting 162

Sales Recruiting Scale Outsourcing Services Sales Hiring 162

Kellblog

AUGUST 21, 2022

When you make a list of key SaaS metrics, you’ll rarely find age listed among them. Rules like these help by providing you with data not about what the average companies are doing, but what the great ones are. But that’s why we have other metrics like cash conversion score. Answer: a small business [1].

Venture Capital 118

Venture Capital Retention Finance Scaling 118

Chart Mogul

JUNE 8, 2018

On what it takes for SaaS startups to get venture capital funding today. “If you want to raise capital from a VC fund then it only makes sense if you really have the ambition and a very strong desire to do something really really big.” On increasing transparency in venture capital. Let’s dive in!

Venture Capital 84

Venture Capital Software Review Scale Startup 84

SaaStr

AUGUST 25, 2023

You have to understand how venture capital works. You have to see: A couple of good hires brought in Improvement on some metrics A big deal or two hanging out there, brought in and closed Things taken off your plate. If, in one sales cycle, things aren’t improving on several core metrics, they never will.

Part-Time VPE 183

Part-Time VPE Scale Sales Hiring CTO Hire 183