Tomasz Tunguz wrote this very brief post on the counter intuitive situation to find that negative churn or account expansion best co-relates to the valuation of a SAAS company during Series A. Not revenue or rate of growth of revenue.
There is so much information available about building and growing your saas and I always wonder what it takes to clear our head and focus on what needs to be done. Building a SAAS business is very complex and difficult. When you get over the initial hump, what determines if you will go from $2M ARR to $20M? And then to $100M ?
This presentation by Jason Lemkin provides 10 pointers of things you are probably doing wrong or need to do right – which ever way you look at it. Includes mistakes like:
Not Hiring 2-3 Sales Reps.
Not Seeing The Pattern Early Enough – this is apparent by the time you hit $500K ARR.
Not (Intentionally) Going Upmarket Faster and
Not Seeing the Power of a Mini-Brand
It is a 57 min video and has a download link to the slide deck. A great investment of your Tuesday evening.
And as you will realise it will mostly be your fault if you are not looking out for the signs.
P.S. Whenever you are feeling like learning something new about Saas head to Jason Lemkin’s Twitter feed.
Where I learnt this # 288
Top 10 Mistakes Getting to $100M ARR https://www.heavybit.com/library/video/top-10-mistakes-getting-to-100m-arr/
Yesterday I attended the Startup Grind Durham region spearheaded by Sherry Colbourne CEO of Spark Centre, Oshawa with two electrifying guests Sean Sheppard and Andrew Goldner founders of GrowthX. It was a rocking time full of bonhomie and nuggets of wisdom. Here’s one: the ‘Service as a software’ idea shared by Sean.
There has been a lot of advice to the contrary. While I understand that as a philosophy – to focus on your customer and not your competitor – on the ground it makes a lot of tactical sense to know what the competitors are up to and how the ecosystem is reacting to their moves.
Mark Leslie was the founding Chairman and CEO of Veritas Software. During his tenure as CEO, the company went from 12 to 5,500 employees and from annual revenue of $95,000 to $1,500,000,000. Currently he is a Lecturer at the Stanford Graduate School of Business where he teaches courses in Entrepreneurship, Ethics and Sales Organization.
Over 500 companies participated in the 2019 edition of the SAAS Benchmarks study by OpenView Partners, now in its 3rd year.
70% of the companies were under $10mn ARR and ranged from Very small to Midmarket by size. According to the findings top two concerns of founders were
– product execution and go-to-market (GTM) execution.
– 2018 was the best year on record for software IPOs with 17 new public companies raising a collective $5.1B, 2x more than the next highest year. Software companies spend $63.1B on R&D, accounting for one-fifth of all domestic business R&D in the US.
Today Saastock, the definitive SAAS conference from Dublin (now 6 conferences globally and counting) founded by Alexander Theuma , published a list of the most promising saas companies of 2018. It includes companies from eCommerce marketing, community knowledge management, customer engagement, HRMC – well a wide gamut. Oscar Hackett provided the overview in this succinct piece which included the following companies:
Perhaps the last place saas folks are thinking of as the next big opportunity is – Africa. But according to Anish Shivdasani, CEO of Giraffe, for the next 30 years the opportunity will be there. Based on his experience scaling his job app to a million users he shared his takeaways at the 2019 SaaStr conference –