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Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? In the early days, there are probably only 5 metrics that really matter : ARR ARR Growth Rate Burn Rate True Customer Happiness. NPS is A Great Core Metric. Don’t get lost in secondary metrics and miss the bigger early-stage goals.
Q: How is VentureCapital difference since Covid-19? The ones with good, but not great, metrics. SaaStr New New Venture 2020. The post How VentureCapital Has Changed Since Covid-19 appeared first on SaaStr. At first — and only briefly — things slowed way back.
Each quarter, a group of analysts, including me, publish analysis on the trends in the venturecapital market. Immediate data is within 12% accuracy on the three key metrics for Series A, B, & C. I was curious about how much variance exists in the data. The later rounds were much closer except for Q3 2019 in Series As.
And there’s a rough metric you can use to meter this: for each 10% of your company you sell roughly, you’re going to give up a board seat. 10 Best advice if you’re going from bootstrapping to venturecapital to avoid a mistake: First, it all normalizes around 8 to 10 million in revenue. It is not for everybody.
This creates a much harder capital markets environment. US venture funding went from 8 to 300 over 15 years. It’s now falling to 150 because 81% percent of the dollars invested in venturecapital at the height of the boom came from non-traditional venturecapital firms which are all very likely to leave investing.
Q: Dear SaaStr: What Happens and Changes After You Raise VentureCapital for the First Time? A few thoughts if you haven’t raised venturecapital before: 1. 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.
Dear SaaStr: What Did You Learn From Your Worst VentureCapital Investment? A related post here: 10 of My Top Seed Investing Mistakes The post Dear SaaStr: What Did You Learn From Your Worst VentureCapital Investment? History doesn’t repeat. But it definitely rhymes. appeared first on SaaStr.
Logan Bartlett, Managing Director at Redpoint Ventures, shares their yearly “State of the Market” report to understand what is and isn’t happening in venturecapital today. The post What’s Really Happening in VentureCapital Today with Redpoint Ventures Managing Director Logan Bartlett appeared first on SaaStr.
Large Audience: Considered the biggest SaaS conference with a large number of attendees from leading SaaS companies, startups, and venturecapital firms. The event is known for its focused content on SaaS growth strategies, metrics, and best practices, making it particularly valuable for B2B SaaS companies.
20VC + SaaStr: The Hidden Game of Silicon Valley: Decoding VentureCapitals New Rules #4. The Future of AI in B2B SaaS: Insights from Synthesia and Theory Ventures. #3. The Top 10 Customer Success Metrics Investors Care About in 2025 with Gainsight CEO Nick Mehta #5. Its Already Happening, In Fact. #2.
funding from Creandum Windsurf : $40M ARR, seemingly acquired by OpenAI for $3B These aren’t typical B2B metrics. These are venturecapital fever dream numbers. In the AI coding space, we’re seeing growth rates that would make even the most aggressive VCs blush: Cursor (Anysphere) : $500M ARR at $9.9B
The Three Months of Strong Growth Rule in Raising VentureCapital # 6. Dont Be a VC Snob There are definitely risks raising capital from non-standard investors. Send them to other founders who have raised VC capital. Look at your metrics objectively. Dont waste folks time before then. Re-read that deck.
It’s wonderful to see the expansion of venturecapital across these geographies and especially at very healthy growth rates. A 50% growth rate sustained over 6 years implies 11x growth in venturecapital investment during the period. The missing piece of data concerning round size is the valuation metrics.
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. Capital Efficiency Becomes Everything With slower growth rates and increased competition for budget, the SaaS companies that thrive will be those that can demonstrate clear ROI and capital efficiency.
The venturecapital and SaaS landscape is experiencing seismic shifts that will fundamentally reshape how companies compete, hire, and operate. This approach is becoming essential because, as the speakers emphasized, struggling companies can’t attract great talent regardless of their growth metrics.
You can’t make money in venture unless you have companies that get to $100M or $200M in revenue within seven to ten years. Understanding what venturecapital firms are looking for helps you make the best decisions for your specific company. Pay attention to multiples to get a pulse on venturecapital.
During an enlightening session at SaaStr Europa 2022, Zach Coelius (Managing Partner at Coelius Capital) and Tiffany Luck (Investor at GGV Capital) share the secrets and lesser-known players in the world of venturecapital. Additionally, be ready to show off some specific metrics to a VC associate. VC Associates.
Q: How do venturecapital firms determine when and how to help stalled or stuck portfolio companies? No fake metrics. The post How do venturecapital firms determine when and how to help stalled or stuck portfolio companies? It is a super interesting topic more should be written about. VCs expect some tough times.
The bar for venturecapital is high, especially now. But with your metrics, you could still raise from founder-friendly growth-stage investors who value efficiency. The key is whether you can deploy that capital to accelerate growth meaningfully. Most VCs want to see 100%+ growth at your stage.
To participate, founders must submit their pitch decks, growth metrics, and funding details. Remember, VCs are selective, so your metrics and pitch need to stand out. #2. How to Meet VCs at SaaStr Annual 2025 #1. Its designed to connect founders with VCs actively looking for investments.
Q1 revenue growth: 39% US commercial: +68% growth Government contracts flowing like water NATO partnerships expanding The insight : When you combine AI that actually works with government customers who have unlimited budgets, you get returns that break traditional SaaS metrics.
Prior to founding Chemistry, Ethan spent 16 years at Bessemer Venture Partners, where he led investments in successful companies like PagerDuty, Intercom, and SendGrid. Focus on the right metrics : Be transparent about your key metrics rather than relying on vanity numbers.
NPS is one of the three core metrics, along with revenue and unit economics, they use to steer the business. If you’re doing something that requires venturecapital to get off the ground, or else it’s not going to be a business, you better be sure you can raise that money.
Q: How hard is it to raise venturecapital? The overall odds of raising venturecapital may be 0.05%. >50% of each YC batch does, or can raise capital. They have the right teams, the right metrics, and the right traction. The post How hard is it to raise venturecapital? 100% of the time.
Something that’s both not surprising but also pretty impactful: 57% of venture-backed startups will have to go “back to market” in 2024 to raise more capital. And realistically, most won’t have the metrics to pull off another round. VCs don’t give startups 10 years of capital.
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 venturecapital grew 40x in 10 years. In 2021, employment costs per capital increased to roughly $200k.
Almost Everyone’s Gotten Radically More Efficient in SaaS That’s a good metric to think about at scale now. Venturecapital is there to bridge the gap, and let you hire more to go faster. The average public SaaS company now has hit $300,000 in revenue per employee or so on average. This starts to get tough.
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.
Ideally, the management team should raise more capital to move to the upper right quadrant of the matrix. Venturecapital, debt, or negotiating better cash collections (multi-year prepay) are all viable strategies to position the business to press its advantage. First, when should the company raise capital?
Later stage venturecapital was so free-flowing, that it made sense to invest in sales, customer success (and marketing to some extent) at much higher levels that before. Now, as SaaS got bigger and we scaled faster, we pushed these metrics up a bit. That’s what venturecapital is for, in fact, to some extent.
So there are a lot of rough and arm chair metrics for fundraising in SaaS in terms of valuations. So the minor point is maybe we’re just back to 2016-2017 in SaaS venturecapital for Series A and later rounds. For the best ones. We’re never “going back” to how things were in late 2020 and 2021.
FT: Yamini Rangan’s Top Metrics as HubSpot’s New CEO. How Would a Person Start a VentureCapital Fund? Top Blog Posts This Week: 12 Things You’ll Look Back On in SaaS … And Regret. 6 Key Signs a VP Can’t Scale Beyond $5m-$10m ARR. 5 Interesting Learnings from Samsara at $500,000,000 in ARR.
This article looks at the history of SaaS as it relates to financial capital and production capital. 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 venturecapital (financial capital thats more expensive). .
And with that, a lot has changed in the venturecapital markets, even early stage. The expectations, the metrics, the pool of VCs. It hit hard, with Nasdaq falling another 15%, and private valuations perhaps 20%. More importantly, many Cloud leaders are down 50% from their all-time highs. The change is still being figured out.
In the ever-evolving landscape of SaaS, VentureCapital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. With market downturns and reduced venturecapital funding, some businesses struggle to stay afloat. However, others seem to remain unimpacted by these changes.
If you’re raising venturecapital or plan to, and you have choices, know that bad investors can hurt you. If venturecapital seems alluring when you haven’t raised before, you’ll realize it’s extremely expensive, dilutive, and addictive. 5: Bad investors really can hurt you. You can’t get growth back by spending more.
A few thoughts if you haven’t raised venturecapital before: 1. 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. Be extremely transparent and data-driven.
I have to say it was a combination of luck and foresight that I started talking with Allan Wille and Lauren Thibodeau about capital efficiency as a potential topic for their Metric Stack podcast many months ago. Because now, as the episode is coming out , capital efficiency is the hot topic of the day.
Simultaneously, venture markets have expanded dramatically, contributing to this overcrowding. In a world without venturecapital (or other sources of external financing for startups), each company would have to grow solely based on the merits of their product and sales. Revenue multiples are a shorthand valuation framework.
First, they focused on handful of key metrics. In many SaaS categories as well as in venturecapital, this idea is absolutely true. And that starts with a focus on metrics and hiring the right people. That’s the key. It’s the resulting hustle that outlasts product cycles and wins against unremitting competition.
A Burn Rate That is Too High Venturecapital is meant for investing, for sure. But there’s a fine line between investing and keeping a leaky boat and set of metrics afloat. Almost every founder regrets using capital to keep a high-burn rate engine going that isn’t scaling rapidly. #2.
We’re going to do something a little different here, and both catch up on the state of Equality in VentureCapital and Cloud, and also revisit Aileen’s classic pieces in TechCrunch that kicked off the age of the Unicorn. We’ll do a deep dive into the latest metrics on what it takes to build something iconic.
The number of global venturecapital (VC) investments dipped in 2022, thanks to ongoing geopolitical tensions, turbulence in global capital markets, supply chain issues, and increasing interest rates. Venturecapital firms pumped a lot of money into the economy during the pandemic, buying countless software companies.
If you need to raise venturecapital, preparation is important, both in terms of process and in terms of expectation alignment. Profitability has eclipsed growth as the primary set of metrics that investors care about. But it’s important to be constantly plugging in new assumptions to those to make them accurate.
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