Fresh Insights

Analyses, Musings & Observations

What big funds look for in a CEO

Sammy is the Managing Director and Cofounder of Blossom Street Ventures.  Email him directly at sammy@blossomstreetventures.com, especially founders.   Recently, we got a hold of an investor letter from one of New York’s finest late stage venture funds.  The letter shared insights into what the fund looks for in a management team, which resonated with…
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SaaS multiples in q1 were 14x

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. SaaS comps have never been stronger: of the 98 SaaS companies we follow, the average public SaaS business is trading at 18.3x revenue while the median is 13.92x. Interestingly, the…
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Build a B2C brand

“By Invitation Only” is the story of Gilt Groupe. While Gilt may not have been a good outcome for many investors (it ultimately exited for $250mm but was at one time a unicorn), the book has a number of great take-aways for ecommerce businesses.     It’s easier to move a brand down market than…
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Half of new SaaS revenue could be upsells

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Net dollar retention is the most important metric in SaaS. If you’re over 100%, revenue from upsells is outpacing revenue you’re losing from downgrades and churn. It means you’re keeping the customer base forever, and your current…
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How to control SaaS churn

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Gross dollar churn is important, but in our view net dollar dollar retention is the critical figure to watch. For those on annual contracts, it is generally defined as revenue from customers in the beginning of a…
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Measuring SaaS sales efficiency

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. There are many ways to measure SaaS sales & marketing efficiency. One of the simplest is to look at new revenue booked over a given time period divided by sales…
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Hiring B2B SaaS sales reps

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Recently I read “Hire Right, Higher Profits” by Lee Salz which focuses primarily on enterprise sales rep hiring. Below are some of the key points of the book along with my commentary.     Failure in B2B…
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A playbook for SMB focused SaaS co’s

Sprout Social is a successful social media management SaaS company targeting SMBs. We read their S1 recently looking for insights into their business that we could learn from. A summary of the S1 is below. The numbers are good. 23,693 customers. 99% of revenue is software. revenue of $44.8 million, $78.8 million, and $102.7 million…
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The growth needed for a SaaS exit

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. How fast do you need to grow prior to exit? We looked at the last 36 SaaS IPO’s going back to MongoDB’s IPO in October 2017. The data is below….
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Cash efficiency compounds founder ownership

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. There’s a compelling reason to keep burn down and be cash efficient: it limits founder dilution. The less money you raise, the less dilution founders absorb, but what many founders don’t realize is that the relationship is…
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