Fresh Insights

Analyses, Musings & Observations

How to build 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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The Series A Valuation Report

What valuations are founders asking for when they raise their Series A round? Since May 2018, we’ve had conversations with 179 companies about leading or following their Series A rounds.  Below is aggregate data on these 179 raises with names redacted to preserve confidentiality.  Figures like revenue, valuation, and round size are medians from conversations…
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Consumer tech valuations are down

We follow 60 publicly traded consumer tech companies in industries like social media, marketplaces, content distribution, gaming, ecommerce, payments, and new hardware.  Consumers and tech are a critical in the business model. Given the diversity of industries, the multiples vary.  Below is the data along with a few observations.     Social media has been…
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SaaS valuations are unshakable

Even as stocks sell off, SaaS valuation remain unshakeable.: of the 76 SaaS companies we follow, the average public SaaS business is trading at 8.91x revenue while the median is 8.29x. The medians and averages are nearly unchanged from July when we last presented the data, which is pretty incredible given the recent stock market…
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You can’t rely on inbound leads only

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 first post of a few I’m going to share about this book: there was so much good…
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The growth needed to exit, by industry

How fast do you need to grow prior to exiting successfully? We looked at the full year revenue of 127 tech companies prior to going public to find out. Note, the “S1 filing” below is the year the company filed their S1 – an S1 is like a prospectus every company must file prior to…
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Being a big tech company is harder than ever

It’s easier than ever to start a business, but harder than ever to become the biggest.  It’s also expensive. We did an analysis looking at the amount of capital raised by 127 tech companies prior to going public.  These are some of the biggest players in their respective industries.  The overall theme of the data…
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How long will it take you to exit? 7 to 9 years

We looked at the time it took to exit for 127 publicly traded tech companies.  Specifically, we used their S1’s – a securities filing a company makes before IPO – to find out the year each company was founded and compared it to the last year financials were released as a private company.  The data…
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What should your startup be spending on product?

We did an analysis looking at product/R&D spend at 123 successful startups that ultimately exited via IPO.  Specifically, we compared product spend to revenue in the full year prior to IPO, the year before that, and when available 2 years prior so we could see trends.  What we found was interesting.  The data and observations…
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SaaS performs well in a recession

SaaS Capital, a lender to software businesses, put out an excellent research piece which examined the performance of publicly traded SaaS businesses during the recession.  The 3 page research report is well worth the read, and we decided to summarize some of the findings. Below is the data and under that are observations.   The…
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