The People's VC
We look for founders who are cash efficient, scrappy, and pragmatic. We focus on companies with $3mm to $30mm of run-rate revenue, with year over year growth of 20% to 100%+ depending on revenue. We'll invest anywhere in the US, Canada, UK, Australia, and broader Europe. We prefer to lead, but also follow. Our check is $1mm to $4mm. We like traditional growth rounds as well as leading or filling inside rounds, extensions, supplementing debt facilities with equity, small rounds in big companies, overlooked sectors, and fast rounds. Unlike other VC, we like hearing from founders directly. Email our Managing Partner at firstname.lastname@example.org.
The Blossom Street
Net dollar retention data
Net dollar retention is arguably the most important measure in SaaS. Formulaically when measured over a 12 month period, it’s ARR 12 months ago + upgrades — downgrades — churn that occurred over the following 12 months, all divided by that beginning ARR. A healthy SaaS business has net dollar retention over 100% because upgrades in the customer base…
The right level of SaaS burn
Fast growing SaaS businesses are usually unprofitable, but what is level of operating loss or burn is acceptable? We looked at the last 73 software IPOs going back to MongoDB in October 2017. The data is below and observations follow. Revenue to burn is 3.50x to 1. That’s the acceptable level of SaaS operating loss….
Recruiting great SaaS sales talent
The Bridge Group is a SaaS sales consulting firm that we hold in very high regard. They release outstanding sales data which can be found at their site, bridgegroupinc.com. We recently reviewed their “Sales Hiring Hourglass” which is primer on hiring B2B sales talent. It’s well worth the read, and below I summarize some of…
Q2 SaaS metrics
We keep close track of every SaaS IPO in the past five years (since MongoDB in October 2017). Those 67 companies have finally all issued their Q2 2022 earnings. Below we summarize key financials and metrics. Median quarterly revenue of $102mm. Median and average revenue of the 67 companies was $102.5mm and $171.1mm respectively. Annualized,…