Fresh Insights

Analyses, Musings & Observations

Measuring SaaS sales efficiency

There are many ways to measure SaaS sales & marketing efficiency. One of the simplest is to look at revenue booked over a given time period divided by sales & marketing spend during the period (New Rev/S&M). While the sales & marketing expense in a period may not necessarily be attributable to a given period’s…
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Building SaaS pipeline part 4

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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Growing into enterprise customers

Zoominfo recently went public and in their prospectus is a chart that shows their migration to larger enterprise customers. The chart is subtle, but it does show a transformation that most SaaS companies will undergo: as your product becomes more feature rich and valuable, the customer base migrate towards higher value enterprise customers. Why are…
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Building SaaS Pipeline – part 3

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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Building SaaS pipeline part 2

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…
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110% net dollar retention is the standard

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 yields a number greater…
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Managing SDR’s

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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Revenue and growth of tech IPOs

We looked at the size (revenue) and revenue growth of 154 tech companies prior to going public to see how fast you need to grow prior to IPO. Data is below.   SaaS. Software companies posted median revenue of $105mm in the year prior to going public with 55% median growth. The range of growth…
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Metrics from 99 SaaS exits, distilled

We looked at the equity raised of 99 SaaS companies that have gone public; according to that data, it takes $133mm of equity to get to a big exit (IPO). All data was pulled from s-1’s, which is a securities filing made before going public. The data as well as a few observations are below….
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It’s expensive to be ‘big tech’

It’s easier than ever to start a tech business, but harder than ever to be the biggest. It’s also expensive. We did an analysis looking at the amount of capital raised by 147 tech companies prior to going public. These are some of the biggest players in their respective industries. Observations are below. Being big…
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