Fresh Insights

Analyses, Musings & Observations

Great SDR data from SaaS companies

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard.  They release outstanding sales data which can be found at their site, bridgegroupinc.com.  We recently reviewed their “Sales Development Metrics and Compensation research Report” which compiles data from 434 executives at SaaS companies with median revenue of $24mm and…
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65% of reps hit quota, and other SaaS metrics

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard.  They release outstanding sales data which can be found at their site, bridgegroupinc.com.  We recently reviewed their “SaaS AE Metrics & Compensation Report” which compiles data from 287 executives at SaaS companies with median revenue of $27mm and median…
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SaaS S&M spend doesnt scale

Does the Sales & Marketing function at big software companies scale? The data says no. We looked at new revenue divided by sales and marketing spend of SaaS companies at the time they went public. We then compared that figure to the same calculation the year prior to going public. In other words, if in…
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How to sell code

In 2017, we had a death in the portfolio.  Once all the employees left, the only remaining assets were some patents, servers, domains, and a lot of code.  Eventually we managed to sell that intellectual property (“IP”).  Here is what we learned.   Set expectations.  The value of IP is a small fraction of what…
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Exits take 7 to 9 years

We looked at how long it took 161 publicly traded tech companies to exit. 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 is below.   Time depends…
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CEO salaries at 125 tech co’s

We’ve seen a wide range of CEO salaries in our portfolio, from as low as $35k annually to as much as $325k (plus bonus). While there is no dataset explicitly outlining salary levels at early stage companies, we can use the salaries from tech companies at their IPO to get a sense for what the…
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Non-recurring revenue should be ~20% of total rev.

VC love recurring revenue and many VC won’t ascribe any value to non-recurring revenue streams. That said, do not forsake non-recurring revenue streams. If you do, you’re ignoring free financing and a way to make the product stickier. Non-recurring revenue streams like onboarding fees and installation fees are a fantastic source of cash, which means…
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SaaS performance in a recession

SaaS Capital, a lender to software businesses, published 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 companies…
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Negotiating with VC – Part 2

Below is a continuation of a recent blog post about a book called Never Split the Difference by Chris Voss. Chris was one of the premiere FBI Hostage Negotiators in the world, and his tactics could be useful for negotiating with customers, vendors, and of course your VC. The original blog we wrote highlighted some…
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Negotiating with your VC

I just read a book called Never Split the Difference by Chris Voss. Chris was one of the premiere FBI Hostage Negotiators in the world, and his tactics could be useful for negotiating with customers, vendors, and of course your VC. Excerpts from the book are below. Create warmth by using first names. “I’m sorry,…
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