Fresh Insights

Analyses, Musings & Observations

VC ownership at exit

How much of your company will VC own at the time you exit? We looked at the level of VC ownership of 129 tech companies at the time they went public to answer that question. The median and average level of VC ownership at exit was 52% and 51% respectively. By the time of exit,…
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You dont need strategic investors

Strategic investors, defined as corporations that make venture investments, can be a valuable source of capital but are they critical? No. We dug through the filings of 129 tech companies and found that only 24 of them had a strategic investor.   Some industries have more prevalence of strategic investment than others. For instance, 5…
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Managing SDR’s

We got another great survey from Bridge Group which looks at the SDR teams of 355 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…
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AE metrics and data

The Bridge Group put together a phenomenal survey of inside sales teams at 384 B2B SaaS companies.  The median revenue of the companies surveyed was $27mm, the median ACV was $25,000, and median sales cycle was 60 days.  The 77 page report is well worth the read and available at their site (bridgegroupinc.com).  Below we…
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Cold email a VC

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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Sell solutions, not products

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…
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Autopsy of a dead venture backed co

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…
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Cash efficiency in big tech

Cash efficiency, measured as revenue per year / equity + debt invested, is every bit as important as revenue growth. Spending too much to grow at best dilutes away your return and at worst will lead to a company’s death. We did an analysis looking at the revenue, equity, and debt of publicly traded tech…
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The LTV of SaaS

We did research showing the typical SaaS company generates $0.57 of revenue per $1.00 of investment at the time they go public. At that level of annual revenue and assuming net dollar retention of 111% (in line with the median for public SaaS), the lifetime value of a SaaS customer is anywhere between $7 and…
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Cash efficiency in SaaS

Cash efficiency is one of our favorite metrics in SaaS. Measured as recurring revenue in the latest year / equity + debt invested, it is every bit as important as growth. We did an analysis looking at the revenue, equity, and debt of 94 publicly traded SaaS companies at the time they went public. Using…
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