{"id":3071,"date":"2019-10-22T12:06:20","date_gmt":"2019-10-22T06:36:20","guid":{"rendered":"https:\/\/pitch.link\/blog\/?p=3071"},"modified":"2019-10-23T12:13:33","modified_gmt":"2019-10-23T06:43:33","slug":"negative-churn-is-the-best-indicator-of-series-a-valuation","status":"publish","type":"post","link":"https:\/\/pitch.link\/blog\/negative-churn-is-the-best-indicator-of-series-a-valuation\/","title":{"rendered":"Negative Churn is the best indicator of Series A valuation"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Tomasz Tunguz wrote this very brief post on the counter intuitive situation to find that negative <a href=\"https:\/\/pitch.link\/blog\/talking-about-churn\/\">churn<\/a> or account expansion best co-relates to the valuation of a SAAS company during Series A. Not revenue or rate of growth of revenue. <\/p>\n\n\n\n<!--more-->\n\n\n\n<p>There are many reason that he attributes to this: <br>All in all it demonstrates product market fit. lower CAC through word of mouth and referrals. When even a small group of customers continue to spend more with a product it is  believable that   many more customers can be acquired with the same product and service (customer success) combination. <\/p>\n\n\n\n<p>Great product is step one. Customer Success (with your product) is step two.  <\/p>\n\n\n\n<p>This is a brief read. Will totally convince you to invest in great customer experience with your product if you are not doing so already.  <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"810\" height=\"572\" src=\"https:\/\/i0.wp.com\/cdn.pitch.link\/blog\/wp-content\/uploads\/2019\/10\/23121018\/0-2-1024x723.jpg?resize=810%2C572&#038;ssl=1\" alt=\"Negative Churn is the best indicator of Series A valuation\" class=\"wp-image-3072\" srcset=\"https:\/\/cdn.pitch.link\/blog\/wp-content\/uploads\/2019\/10\/23121018\/0-2.jpg 1024w, https:\/\/cdn.pitch.link\/blog\/wp-content\/uploads\/2019\/10\/23121018\/0-2.jpg 300w, https:\/\/cdn.pitch.link\/blog\/wp-content\/uploads\/2019\/10\/23121018\/0-2.jpg 768w, https:\/\/cdn.pitch.link\/blog\/wp-content\/uploads\/2019\/10\/23121018\/0-2.jpg 1532w\" sizes=\"(max-width: 810px) 100vw, 810px\" data-recalc-dims=\"1\" \/><figcaption>Negative Churn is the best indicator of Series A valuation<\/figcaption><\/figure><\/div>\n\n\n\n<p>If you want to get started on Customer Success read &#8216;Customer Success: How Innovative Companies Are Reducing Churn and Growing Recurring Revenue by <a href=\"https:\/\/www.linkedin.com\/in\/ACoAAAAAJxIBbYLISrIN6Cz4RAGGB-aCQ5A6rx8\/\">Nick Mehta<\/a> CEO of Gainsight.  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>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.<\/p>\n<\/p><div class=\"more-link\"><a href=\"https:\/\/pitch.link\/blog\/negative-churn-is-the-best-indicator-of-series-a-valuation\/\" class=\"btn btn-small btn--dark btn-hover-shadow\"><span class=\"text\">Continue Reading<\/span><i class=\"seoicon-right-arrow\"><\/i><\/a><\/div>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[68,69],"tags":[70,78,220,221],"class_list":["post-3071","post","type-post","status-publish","format-standard","hentry","category-saas","category-what-i-learnt-today","tag-alwayslearning","tag-saas","tag-customersuccess","tag-churn"],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"Subhanjan Sarkar","author_link":"https:\/\/pitch.link\/blog\/author\/subhanjan\/"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paX7jg-Nx","_links":{"self":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/3071"}],"collection":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/comments?post=3071"}],"version-history":[{"count":0,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/3071\/revisions"}],"wp:attachment":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/media?parent=3071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/categories?post=3071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/tags?post=3071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}