Fresh Insights

Analyses, Musings & Observations

Layoffs done right

Sammy is the Managing Director and Cofounder of Blossom Street Ventures.  Email him directly at sammy@blossomstreetventures.com, especially founders.   At some point you may have to lay off a chunk of your team to reduce burn, especially now.  Large layoffs at a startup are particularly challenging because the team is small, everyone works in the…
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Gross dollar retention data

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. A very important but often overshadowed metric in SaaS is gross dollar retention. Gross dollar retention measures how much of your customer revenue has remained with you a year later….
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Net dollar retention at 59 SaaS co’s

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. Net dollar retention is the most important measure in SaaS. Formulaically, it’s ARR + upgrades — downgrades — churn all divided by beginning ARR. A healthy SaaS business has net dollar retention over 100%…
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The right level of SaaS burn

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. On median and average, fast growing SaaS businesses are unprofitable. So what is the “healthy” level of burn to drive growth? We looked at the last 36 software IPOs to answer…
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Measuring cash efficiency in SaaS

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. Cash efficiency is one of the most important metrics in SaaS. Since the revenue at SaaS companies is largely recurring, we measure it as ARR / net investment. Formulaically it’s revenue…
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Stop worrying about competitors

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Many entrepreneurs we speak to obsess over what their competitors are doing. While it’s good to know where you are in the market relative to peers, overly concerning yourself with your competition is counter-productive. Below are a…
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Tell your investors everything

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders.   If you’re not communicating with your investors regularly (at least monthly), you should be. Here’s why: The more info you share, the fewer questions you’ll answer. I can attest to this personally. At BSV we have…
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The story of the greatest venture fund ever (Benchmark)

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders.   eBoys by Randall Stross is a classic. It chronicles the early days of one of the finest venture funds ever: Benchmark. Below are some of the excerpts I found most valuable. “When Benchmark invested $6.7mm in…
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Learnings (good & bad) from Sumo Logic’s S1

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders. Sumo Logic recently went public and in case you forgot to read their S1, we summarize it for you below. There are some nice learnings from how Sumo runs their SaaS business. What…
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Lessons from the best ‘new’ SaaS co: JFROG

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially seed to Series C founders. JFrog recently went public, so we did a deep dive on their prospectus. In conclusion, they’re a fantastically run company and there are a number of tidbits in their prospectus about how to…
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