Clouded Judgement

NOVEMBER 18, 2024

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. ”” Benchmark Data The data shown below depicts how the ServiceTitan data compares to the operating metrics of current public SaaS businesses.

Benchmarks 299

Benchmarks Payments Payment Services SaaS Payments 299

Buffer Resources

MAY 13, 2025

Think emails in your inbox, glitter on a Mother’s Day card, hot sauce… That applies to social media metrics, too.  Not all social media metrics are created equal, and which ones to focus on comes down to your specific social media goals. What are social media metrics?   You might be surprised to hear it.

Social Media 111

Social Media Metrics Branding Engagement 111

SaaStr

DECEMBER 20, 2024

Having led sales teams of 500+ at BILL and 800+ at HubSpot, Michelle has unique insights into what makes great frontline managers and why investing in them is crucial for sustainable growth. “At HubSpot, I had over 100 frontline sales managers reporting to me. Robust Measurement Effective measurements is really effective management.

Sales Hiring 258

Sales Hiring Scale Underperforming Technical Team Sales 258

SaaStr

DECEMBER 4, 2022

It created a lot of discussions and was more controversial then — that NPS was a great core metric. Back then, I wrote that when I was a SaaS founder, I thought Net Promoter Score (“NPS”) was a somewhat dumb, Big Company metric. I didn’t want a metric that was abstracted away from revenue. I was wrong.

Metrics 290

Metrics Churn Engineering Innovation 290

SaaStr

DECEMBER 17, 2024

All of which are epic companies with epic metrics. Some rough metrics for the last 4 SaaS IPOs — which again are epic ones: These are rough metrics. But overall, the growth investments weren’t big wins. I didn’t include antidilution protections to keep it simple. At least at IPO. Does this really matter?

SaaS 259

SaaS AI Pricing Metrics 259

SaaStr

AUGUST 9, 2022

Investments I've made that didn't work out: – Momentum investment – CEO a bit of bulls**t artist – CEO good at sales but weak product team / CTO. Investments I've made that had so-so outcomes: – CEO not better than me – CEO couldn't control burn rate – Not really SaaS.

Investment 304

Investment Sales Recruiting CTO Startup 304

SaaStr

JUNE 22, 2025

No excuses, folks 😉 Focus on sustainable growth over vanity metrics if you’re … at the median. Choose your funding strategy based on your market timing and competitive dynamics, not vanity metrics. That’s not enough to raise a big VC round, but it does put you at the median.

Scale 173

Scale Systems Review 173

SaaStr

SEPTEMBER 23, 2022

Dear SaaStr: How Does SaaStr Fund Decide What to Invest In? Let me give my investing process at least for SaaStr Fund : First, I try somehow to identify before a first meeting if there is a >=2.5% chance of investing. Second, I then look for reasons not to invest. No matter how appealing the investment is otherwise.

Investment 297

Investment Startup Metrics Software 297

SaaStr

MAY 8, 2024

As a SaaS veteran who built and sold a software company for nine figures, invested in startups since 2013, 10x-ing his fund, and continues to build a powerhouse community of SaaStr fans, he offers some hot takes on the communities’ burning questions. What metrics should we expect in this environment? Let’s start with the meta. “I

Metrics 268

Metrics Scale Sales Hiring SaaS 268

SaaStr

NOVEMBER 19, 2024

But I’d say 90% of SaaS companies I work with and have invested in don’t get these basics right for a long, long time. NPS is A Great Core Metric. Yes, a lot of this sounds basic. Not for real. More here: If Nothing Else – Segment Churn | SaaStr and I Was Wrong.

Churn 265

Churn Retention Scale Investment 265

SaaStr

MAY 10, 2025

Use metrics like product usage, NPS, and engagement to identify risks early. Focus on Net Retention Net retention is the ultimate metric for customer success. But in the earliest days, NRR is the simplest core metric for Customer Success. Invest in Relationships Customer success isnt just about metricsits about people.

Sales Hiring 226

Sales Hiring Customer Success Scale Retention 226

Clouded Judgement

MARCH 28, 2025

That juxtaposition is what makes investing in venture markets these days so fun! Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 299

Cloud AI Scale Scaling 299

SaaStr

MARCH 16, 2025

Instrument Everything Before running campaigns, ensure you have rock-solid data collection: Define clear metrics tied to business outcomes Create instrumentation that accurately tracks performance Focus on data that’s “directionally correct” – perfect precision isn’t required 4.

Scale 210

Scale Sales Hiring Scaling Marketing 210

SaaStr

OCTOBER 25, 2024

It’s now falling to 150 because 81% percent of the dollars invested in venture capital at the height of the boom came from non-traditional venture capital firms which are all very likely to leave investing. It’s to say many of us do not know how to use AI effectively enough yet to impact conversion metrics. #6:

Venture Capital 330

Venture Capital Marketing AI SaaS 330

User Pilot

NOVEMBER 29, 2024

Many companies invest heavily in acquiring new customers, yet still struggle with growth. Dan, a Stanford-trained engineer with experience guiding companies like Intuit, understands how to optimize your product metrics for growth by focusing on retention and building a product users truly value. At first glance, they look identical.

Metrics 105

Metrics Scale Acquisition Retention 105

SaaStr

OCTOBER 31, 2023

Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? You can’t keep investing in the same companies, at the exact same stage, same valuations, etc. When I’ve cut a corner here and invested in startups with customers that aren’t super-happy, it hasn’t worked out as well. But the NPS/CSAT has to be there.

Venture Capital 271

Venture Capital Investment CTO Churn 271

SaaStr

JUNE 14, 2025

This isn’t just a statistic—it’s a fundamental shift that explains why your growth metrics don’t look like they did in 2019. When you’re operating in a market where nearly half of the addressable opportunity has already been captured, the easy wins are gone.

AI 236

AI Cloud Software Review Underperforming Technical Team 236

SaaStr

NOVEMBER 15, 2022

Metrics are the key to evaluating success and setting goals, but not every SaaS business should orient itself around the same one-size-fits-all numbers. This flexible mindset creates just the right conditions for embracing evolving business models and new metrics. The Metric Monolith: The Rise and Fall.

Metrics 269

Metrics Artificial Intelligence Machine Learning Technical Review 269

SaaStr

MAY 3, 2024

What are the three most under-discussed metrics on social media, with VCs, and especially with founders? They went from on-prem to a SaaS model and may flatter their metrics a little by confusing them. This should be your North Star metric. Invest in your long-tail; don’t give up on champions and smaller customers.

Metrics 297

Metrics SaaS Scale Social Media 297

SaaStr

NOVEMBER 20, 2024

Other places this feedback loop worked well were: Adoption loop metrics. Customers crave metrics about how teams are using all AI products. Don’t underestimate the investments you need to make here to be compelling to your customers. Another big investment during rapid growth is digital moments.

Scale 260

Scale AI Scaling Marketing 260

SaaStr

APRIL 28, 2025

CAC Payback Period Predicts Success More Accurately Than Any Other Metric CAC payback period stands above all other SaaS metrics as the most holistic indicator of business health. Unlike isolated metrics like growth rate or gross margin, CAC payback simultaneously reflects market demand, go-to-market efficiency, and product quality.

Scale 258

Scale Transportation Scaling SMB 258

SaaStr

NOVEMBER 10, 2022

Dear SaaStr: What is the Process You Follow When Investing in an Up-and-Coming Startup? chance of investing. The single most important thing you can do is protect your “slots” so that you meet with startups there is at least some chance you might invest in. Second, I then look for reasons not to invest. But others won’t.

Investment 281

Investment Startup Metrics Software 281

SaaStr

DECEMBER 3, 2023

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. E.g.,: CAC of < 12 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn ratio of 1 or less is Good These metrics do sort of work, if you have some capital to spend (i.e., They don’t.

SaaS Payments 271

SaaS Payments Metrics SMB Payments 271

SaaStr

MAY 5, 2025

This reduces the perceived risk of adopting a new solution, especially if theyre replacing an existing system or investing significant resources. If key stakeholders or end-users see the value during the pilot, its much easier for the client to justify the investment to their leadership team. Risk reduction is key.

Enterprise 208

Enterprise Leadership Investment Metrics 208

SaaStr

JUNE 11, 2025

This early investment in regulatory compliance has become their key differentiator against Tether and newer entrants. While competitors focus on features, investing early in SOC 2, HIPAA, FedRAMP, or industry-specific certifications can become your strongest competitive advantage. Circle trading at $85 up from $31 IPO price.

compliance 218

compliance Marketplace as a Service B2B Healthcare 218

SaaStr

FEBRUARY 14, 2023

In this week’s Workshop Wednesday , Salesforce Ventures Investor, Jessica Bartos, shares the 5 metrics every SaaS company should care about in any market environment, especially the one we’re currently in. Growth Is Still Number One Growth is still the number one metric, but it’s not the only one. They’re simple but not always easy.

Metrics 258

Metrics Marketing SaaS SMB 258

SaaStr

OCTOBER 31, 2023

— Jenny Fielding (@jefielding) October 17, 2023 So one of the parts I like least about investing is the follow-up. A few times a year, I’ll meet founders and a company I believe in so muc h, I’ll clearly offer to invest at the first meeting. Specifically, the follow-up when I’m not sure. That Almost No One Asks.

Investment 270

Investment Metrics Sales 270

Clouded Judgement

JUNE 20, 2025

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric. This is for information purposes and should not be construed as an investment recommendation.

Cloud 157

Cloud AI Headcount Pricing 157

SaaStr

JUNE 4, 2025

The metrics are very strong: $2B ARR (run rate — but not really software revenue) Generated from $121B in transactions on platform Growing 23% $251 ARPU 88% Gross Margins Average customer uses 3.3 B2B founders should prioritize a clear path to profitability alongside growth metrics. #4.

Outsourcing Services 185

Outsourcing Services Scale Banking Customer Lifetime Value 185

SaaStr

MAY 26, 2025

Develop New Performance Metrics : Traditional sales metrics don’t capture the effectiveness of this hybrid approach. CROs need metrics that reflect the overall team performance rather than separating human and AI contributions. Redefine Culture : Sales organizations have always been built around human dynamics.

Scale 213

Scale Sales Hiring AI Sales 213

SaaStr

MARCH 9, 2025

Meeting intensity KPI challenge : Sometimes AI efficiencies can reduce a company’s core metrics (like Calendly’s “meeting intensity”), requiring leadership to make conscientious decisions about value tradeoffs. Building separate AI interfaces can create unnecessary tech debt and learning curves.

AI 186

AI Scale Education User Experience 186

Clouded Judgement

JUNE 6, 2025

ARR (annual recurring revenue) is a hallmark SaaS metric rooted in predictability. However, many companies misuse ARR and count forms of non-recurring revenue as ARR, confusing the metric. I created this subset to show companies where FCF is a relevant valuation metric. Altimeter is an investment adviser registered with the U.S.

Cloud 144

Cloud Technical Review Software Review Technical Advisors 144