Fresh Insights

Analyses, Musings & Observations

Measuring SaaS sales efficiency

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. There are many ways to measure SaaS sales & marketing efficiency. One of the simplest is to look at new revenue booked over a given time period divided by sales…
Read More

Hiring B2B SaaS sales reps

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Recently I read “Hire Right, Higher Profits” by Lee Salz which focuses primarily on enterprise sales rep hiring. Below are some of the key points of the book along with my commentary.     Failure in B2B…
Read More

A playbook for SMB focused SaaS co’s

Sprout Social is a successful social media management SaaS company targeting SMBs. We read their S1 recently looking for insights into their business that we could learn from. A summary of the S1 is below. The numbers are good. 23,693 customers. 99% of revenue is software. revenue of $44.8 million, $78.8 million, and $102.7 million…
Read More

The growth needed for a SaaS exit

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. How fast do you need to grow prior to exit? We looked at the last 36 SaaS IPO’s going back to MongoDB’s IPO in October 2017. The data is below….
Read More

Cash efficiency compounds founder ownership

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. There’s a compelling reason to keep burn down and be cash efficient: it limits founder dilution. The less money you raise, the less dilution founders absorb, but what many founders don’t realize is that the relationship is…
Read More

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…
Read More

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….
Read More

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%…
Read More

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…
Read More

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…
Read More