Fresh Insights

Analyses, Musings & Observations

The right level of SaaS burn

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. On median and average, fast growing SaaS businesses are unprofitable. So what is the “healthy” level of burn to drive growth? We looked at the last 36 software IPOs to answer…
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Measuring cash efficiency in SaaS

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. Cash efficiency is one of the most important metrics in SaaS. Since the revenue at SaaS companies is largely recurring, we measure it as ARR / net investment. Formulaically it’s revenue…
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Stop worrying about competitors

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Many entrepreneurs we speak to obsess over what their competitors are doing. While it’s good to know where you are in the market relative to peers, overly concerning yourself with your competition is counter-productive. Below are a…
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Tell your investors everything

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders.   If you’re not communicating with your investors regularly (at least monthly), you should be. Here’s why: The more info you share, the fewer questions you’ll answer. I can attest to this personally. At BSV we have…
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The story of the greatest venture fund ever (Benchmark)

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders.   eBoys by Randall Stross is a classic. It chronicles the early days of one of the finest venture funds ever: Benchmark. Below are some of the excerpts I found most valuable. “When Benchmark invested $6.7mm in…
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Learnings (good & bad) from Sumo Logic’s S1

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders. Sumo Logic recently went public and in case you forgot to read their S1, we summarize it for you below. There are some nice learnings from how Sumo runs their SaaS business. What…
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Lessons from the best ‘new’ SaaS co: JFROG

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders. JFrog recently went public, so we did a deep dive on their prospectus. In conclusion, they’re a fantastically run company and there are a number of tidbits in their prospectus about how to…
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One-time revenue is valuable in SaaS

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders. Everyone loves recurring revenue and rightly so: it’s far more valuable than one-time revenue to VC and acquirers. But, don’t forsake one-time revenue. Whether it’s for services, onboarding, licensing, or some other one-time…
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7 commandments of SaaS sales reps

Sammy is the Managing Director and Cofounder of Blossom Street Ventures.  Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders.   The economics of a SaaS sales rep can make or break a business.  Below are some thoughts to keep in mind regarding your SaaS sales team:   The best SaaS reps sell…
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Your board is ‘meh’

Sammy is the Managing Director and Cofounder of Blossom Street Ventures.  Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders.   One question I get from entrepreneurs frequently is “so what value are you going to add?” It’s a fair question that should be asked of every VC, and my answer every time…
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