Fresh Insights

Analyses, Musings & Observations

First to market means nothing

There are countless examples of ‘first to market’ not being a sustainable competitive advantage.  Comparing the 2018 public offering of Spotify to Pandora’s original IPO in 2011 is a major example.  Below are some excerpts from Pandora’s S1 (official IPO document filed with the SEC) that show its dominance at the time:   Pandora is…
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Building pipeline with SDRs

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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Net Dollar Retention Data of 98 co’s

One the most important metrics in SaaS is net dollar retention (“NDR”). It tells you what percent of revenue from current customers you retained from the prior year, after accounting for upgrades, downgrades, and churn. For SaaS businesses with annual or multi-year contracts, formulaically it’s beginning of period revenue + upgrades — downgrades — churn all divided by beginning…
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Managing your SDR team

Trish Bertuzzi’s book ‘The Sales Development Playbook’ is 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 first post of a few I’m going to share about this book: there was so much good information that putting it…
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Q2 SaaS multiples have collapsed

SaaS valuations have officially collapsed. We’re back to pre-2016 levels. Of the 123 SaaS companies we follow, the average public SaaS business is trading at 7.5x revenue while the median is 6.3x. Multiples for SaaS companies growing above the median of 25% are better: 8.4x on average and 7.9x on median. The gap between the…
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VC with the most SaaS IPOs

Below is a list of the VC with the most SaaS IPOs in the past 3 years. The top 3 are serious brand names. They include Accel, Sequoia, and ICONIQ, and Tiger (tied for 3rd). Lots of ties. Once you fall under 5 IPOs, the VC with the same number of IPOs increases. For instance,…
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SaaS AE data and management

Every year The Bridge Group puts together a survey of software sales teams. The latest survey includes data from 253 B2B SaaS companies with median ARR of $22mm and median ACV of $38k. The report is well worth the read and available at their site (bridgegroupinc.com). Below we summarize some of the parts we found…
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SDR Data and Management

We got another great survey from Bridge Group which looks at the SDR teams of 406 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 reps/account…
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Learnings from a SaaS IPO - Braze

Braze is a software company that went public in 2021. Below are some of the highlights and learnings from their prospectus. What they do. “Braze is a leading comprehensive customer engagement platform” and “empowers brands to listen to their customers better, understand them more deeply and act on that understanding in a way that is…
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Cold email a VC, especially me

Most VC hate cold emails from entrepreneurs. Reasons vary: i) cold pitches are often poorly prepared; ii) skeptical VC will say to themselves “why couldn’t you find a warm relationship to fund this” or “why am I seeing this and not someone else;” iii) some VC insist that you actually go out and find a…
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