Fresh Insights

Analyses, Musings & Observations

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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Solution selling 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 may…
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SaaS acquisitions multiples update

VMWare is being acquired by Broadcom, which means we have another software M&A comp. Alongside multiples of publicly traded SaaS companies, public SaaS acquisitions are some of the most relevant you can look at for deriving SaaS revenue multiples. These transactions are all cash, the financials are public and audited, and these are all control…
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Autopsy of a Dead Venture Backed Company

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 a…
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SaaS margins are terrible

It’s common to hear “SaaS has great margins,” but that’s not true. The margins in SaaS are terrible as the data below show. The table shows the last 73 publicly SaaS IPOs and their marings. Median revenue is $167mm meaning they’re well past the startup stage and margins should benefit from their scale and maturity….
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Startup lessons from the 90’s

The book ‘Founders at Work’ interviews well known tech founders about their earliest days. It’s well worth the full read, but below I summarized portions that really stood out to me. Note, these stories and companies came up in the 90’s and early 2000’s — we believe in learning from history. Introduction “Perseverance is important because, in…
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