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A Funny Thing Happened on the Way to Sand Hill Road

Tom Tunguz

When capital is scarce, it’s rationed. In the 2010s, US venture capital grew 40x in 10 years. More capital meant the constraints of yester-decade no longer applied. So, did headcount at the Series A. In 11 years, the median headcount at Series A swelled from 15 to 28. [1]. Round sizes ballooned.

Headcount 312
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SaaStr CEO Jason Lemkin and Amias Gerety Partner at QED on Fintech Beat (Podcast 685)

SaaStr

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. By freezing headcount for a year. Let’s dive right in. In one year , they went from -20% to +20% operating margins. How did they do that?

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Building Resilience Through Efficient Scaling In 2023 with ICONIQ Growth General Partner, Doug Pepper, and General Partner and Head of Analytics, Christine Edmonds (Video)

SaaStr

Pepper shares that ICONIQ, a venture capital firm with $10B under management, made fewer investments last year than ever before. Many of them said headcount management and spend were common levers they pulled, given the immediate and significant impact they have on spend. PST, to unveil the data behind effective scaling.

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If You Want to Get Funded – Dude, Make It Easy On Them

SaaStr

You need a baked financial model, that includes sales and marketing costs, scaling over time, headcount, and comparison to comps, and when you’ll need the next round(s). This is more important in SaaS than consumer internet, by that I mean, it’s more important you have the details right-ish here. Both bottoms up and tops down.

Scale 281
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Lessons on Scaling Customer Success from $1M to $300M in ARR with Success Venture Partners

SaaStr

If you’ve raised venture capital, you know net revenue retention is important. Headcount maybe goes from 2 or 4 to 10. Customer success is all about outcomes. When we look at publicly traded companies, there is a direct correlation between NRR and Enterprise value. That’s the end state we’re going for. Everything!

Scale 164
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Your Sales Efficiency Will Probably Plummet Toward $10m ARR. Plan For It.

SaaStr

But specializing across the sales process will take more headcount. in venture capital $$$ to compete in spaces where you generally lose. But if you have $50m in the bank and your competitor has $4m in capital, you can actually compete everywhere — and they can’t. It will take more of a village.

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ChurnZero Named Customer Success Leader in G2 Winter 2020 Report

ChurnZero

The new Customer Success Software Momentum Grid from G2 showcases CS solutions with the highest growth trajectory on a product’s user satisfaction, online presence, and employee headcount growth over the last year. For more information, visit churnzero.net.