Fresh Insights

Analyses, Musings & Observations

VC will own 50% of your business at exit

How much of your company will VC own at the time you exit? We looked at the level of VC ownership of 122 tech companies at the time they went public to answer that question.  The median and average level of VC ownership at exit was 52% and 51% respectively.  By the time of exit,…
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Investment bankers are worth the cost

If you need to raise a $15mm+ growth equity round, you may debate whether or not the banker is worth the cost.  We did the math, and the short answer is the banker is well worth their fee.   The typical fee for a banker raising a growth round will likely be a $50k up…
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Strategic investors dont matter

Strategic investors, defined as corporations that make venture investments, can be a valuable source of capital but are they critical? No.  We dug through the S1’s of 122 tech companies and found that only 22 of them had a strategic investor (an S1 is a doc filed with the SEC before going public).  The list…
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Managing your SDR’s

We got another great survey from Bridge Group which looks at the SDR teams of 355 B2B businesses.  The survey is dominated by SaaS companies, and while it’s well worth the read, our favorite findings are below:   The goal should be to fill calendars.  Some SDR teams focus on setting introductory meetings for sales…
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SaaS account executive data & metrics

The Bridge Group put together a phenomenal survey of inside sales teams at 384 B2B SaaS companies.  The median revenue of the companies surveyed was $27mm, the median ACV was $25,000, and median sales cycle was 60 days.  The 77 page report is well worth the read and available at their site (bridgegroupinc.com).  Below we…
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SaaS revenue per employee is $260k

We took a look at the employee count and revenue of 74 publicly traded SaaS companies to determine revenue per employee.  The data is below and shows a median of $260,350.     Observations are below:   Correlation is strong.  The correlation between employee count and revenue is a whopping 0.98 meaning headcount is nearly…
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Selling a solution in SaaS

I just finished reading Strategies That Win Sales by Mark Marone & Seleste Lunsford.  It’s worth a deeper read, and below are some of our favorite excerpts.   Support depends on complexity.  “Organizations with highly technical products will require live support through distributors or in-house sales representatives, whereas those who sell less complex product sets…
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The holy grail of ecommerce

The holy grail of ecommerce is to grow your cohorts over time.  In other words, the customers you acquire today spend even more the following year and year after that, such that your existing customer base is a source of growth.  It’s a very healthy position to be in as you aren’t dependent on acquiring…
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Autopsy of a venture backed startup

In 2017 we had our first zero at Blossom Street Ventures.  I’ll withhold the name of the company, but I do want to share key learnings from that experience. Below is an autopsy of a dead company.   Build a product for one market.  Our portfolio company built phenomenal technology but didn’t actually productize for…
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cash efficiency in tech

Cash efficiency, measured as revenue per year / equity + debt invested, is every bit as important as revenue growth. Spending too much to grow at best dilutes away your return and at worst will lead to a company’s death.   We did an analysis looking at the revenue, equity, and debt of publicly traded…
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