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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.
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.
What Separates Future Decacorns The companies that will break through the $10 billion barrier share specific characteristics that go far beyond traditional SaaS metrics: Scale Requirement s True decacorn candidates operate with 500-2000+ employees and demonstrate the ability to scale operations across multiple geographies and market segments.
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.
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.
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 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.
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.
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.
This isn’t a vanity metric but a North Star that ensures they’re measuring actual value creation rather than superficial engagement. Monthly Active Users Can Mean Completed Designs, Not Just App Opens Canva defines “monthly active use” as completing a design—something shared, downloaded, saved, or published.
What’s happening in venturecapital right now. Per Pitchbook’s latest data : 41% of all venturecapital dollars deployed in the U.S. Per Pitchbook’s latest data : 41% of all venturecapital dollars deployed in the U.S. this year have gone to just 10 companies. Read that again.
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.
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.
How Would a Person Start a VentureCapital Fund? #8. The Thing Is, Maybe 10%-15% of Venture-Backed Startups Are Still Running the 2021 Playbook. Around 1%-1.5% #7. The Beginning of The End of Customer Success, SDRs, and Support Agents #9. The New Normal: 700 Employees at $200,000,000 in ARR #10. In 2024/2025.
Previously a Partner at Bessemer Venture Partners, Christina led ServiceTitan’s Series A investment and has been tracking the company’s remarkable journey for nearly a decade.
Harry has built one of the most influential platforms in venturecapital through his podcast interviews with top investors and founders. Rory O’Driscoll – Founding partner at Scale Venture Partners with over 25 years of experience investing in software companies. That metric guided investments for years.
A deep dive with three leading AI investors who collectively manage billions in venturecapital and have backed some of the most innovative companies in artificial intelligence. She brings over two decades of experience in technology venturecapital and has been recognized as one of the Top 100 Most Influential Women in Business.
.'” HubSpot solved this by tying CEO compensation to “net new ARR” and “earnings number” — much more controllable metrics than stock price. “When we were a private company, we had a bunch of quirky, slightly misaligned venturecapital investors who were definitely in our shorts.
The growth rates are “venturecapital fever dream numbers” that go beyond typical B2B metrics. This represents a fundamental shift from traditional programming to conversational development. ” For AI coding companies, the ride is just beginning—and the stakes have never been higher.
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.
Lemkin (@jasonlk) May 29, 2025 The Power Law Reality: Why Your Fund Doesn’t Need You to Succeed Let’s start with the uncomfortable truth about venturecapital that every SaaS founder should understand: your success isn’t required for your fund’s success. Meanwhile, 75% of companies are struggling for capital.
The State of AI Acquisitions, IPO Markets, and VentureCapital: Key Takeaways from the Latest 20VC + SaaStr Episode The latest 20VC podcast brought together venture veterans Rory O’Driscoll, Harry Stebbings, and Jason Lemkin for a wide-ranging discussion covering the biggest stories shaping the enterprise software and AI landscape.
With a background in investment banking and venturecapital, Austin brings a uniquely analytical and first-principles mindset to modern B2B growth. Running a regular cadence, writing specs, holding ourselves accountable for metrics. And so definitely grateful for those experiences. And so, uh. It’s interesting.
The Series A Stage: At the Series A, the divide becomes more tied to business metrics. In contrast, the AI Fast Track operates on a different scale, with Seed rounds ranging from $6M to over $100M, driven by technical moats and founder pedigree rather than revenue.
How to Work with VC Talent Teams ” → A tactical guide on how to engage with venturecapital talent teams effectively (e.g., You learn how leadership is done, how metrics are done, right, how systems are done, right? roles are in flux, confidential transitions, or posted only for formality. “ those do matter.
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.
We spent our careers as operators, so our network naturally consisted of other operators and some venturecapital connections from the companies we had previously been involved with. Once the final close occurs, the fund is officially closed to new investors, and the VC firm shifts focus entirely to deploying capital.
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.
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.
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.
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.
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.
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.
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