Fresh Insights

Analyses, Musings & Observations

There is (still) plenty of VC money

We just received Dow Jones VC Edge report for Q2 2019.  The data is excellent and shows the trends in venture capital.   Below is a breakdown of fundraising of new venture funds.  The data on an LTM basis (‘last twelve months’) and observations are below.     Venture is still hot.  Q2 marked the third…
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Seed stage investing is dying

We just received Dow Jones VC Edge report for Q2 2019.  The data is excellent and shows the trends in venture capital.   One section we focused on is the break down of capital invested by stage.  The data on an LTM basis (‘last twelve months’) and observations are below:     Total invested at the…
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Venture investing is slowing

We just received Dow Jones VC Edge report for Q2 2019.  The data is excellent and shows the trends in venture capital.  What are the trends? i) the market has never been more awash with venture capital; but ii) the number of deals done is declining.  As a result, the average deal size has ballooned…
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Building SaaS Pipeline – part 2

I read Trish Bertuzzi’s book ‘The Sales Development Playbook’ and it was by far one of the best sales books I’ve read in a while.  The book focuses heavily on building pipeline with SDR teams.  This is the second post of a few I’m going to share about this book: there was so much good…
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Tech may be recession proof

That’s an aggressive title for a blog, but the data shows it may be true.  We looked at the quarterly revenue growth of 47 tech companies before and after the recession and remarkably, the sector performed pretty well.  Below is the data.       Software.  Only 4 companies showed real YOY drops during the…
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110% net dollar retention is the benchmark

One SaaS metric we monitor closely is net dollar retention.  It tells you what percent of revenue from current customers you retained from the prior year, after accounting for upgrades, downgrades, and churn.  Formulaically it’s beginning of period revenue + upgrades – downgrades – churn all divided by beginning of period revenue.   If that formula…
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Pricing your SaaS product

Price Intelligently put out phenomenal content on how to price your SaaS product.  A link to the full report is at the end of this blog and it’s well worth the read.  Below are our biggest takeaways.   Don’t use competitors’ pricing as your basis.  “the biggest downside of competitor based pricing should be obvious….
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What you need to know in an M&A bid

  Someone wants to buy your business? Awesome.  Before you spend a bunch of time with the acquirer, below are the details you’ll need to know.  Much of the language is taken verbatim from a bid instruction letter that one of our investment bankers supplied us with.   Purchase price and form of consideration.  The…
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