Fresh Insights

Analyses, Musings & Observations

Lessons from an exit before the Series A

We had the chance to speak with Jay Chapel, founder of ParkMyCloud, which exited to Turbonomic in May 2019.  Learnings from his journey are below.   Your original idea will change.  Initially, Jay and his team set out to build a cloud platform that was completely self-service across AWS, Azure, and all the major cloud…
Read More

The summary data on 89 SaaS IPO’s

We looked at the equity raised of 89 SaaS companies that have gone public; according to that data, it takes $132mm 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….
Read More

Big Tech needs more capital than ever

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.  …
Read More

VC will own 50% of your business at exit

How much of your company will VC own at the time you exit? We looked at the level of VC ownership of 122 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,…
Read More

Investment bankers are worth the cost

If you need to raise a $15mm+ growth equity round, you may debate whether or not the banker is worth the cost.  We did the math, and the short answer is the banker is well worth their fee.   The typical fee for a banker raising a growth round will likely be a $50k up…
Read More

Strategic investors dont matter

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 S1’s of 122 tech companies and found that only 22 of them had a strategic investor (an S1 is a doc filed with the SEC before going public).  The list…
Read More

Managing your 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…
Read More

SaaS account executive data & metrics

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…
Read More

SaaS revenue per employee is $260k

We took a look at the employee count and revenue of 74 publicly traded SaaS companies to determine revenue per employee.  The data is below and shows a median of $260,350.     Observations are below:   Correlation is strong.  The correlation between employee count and revenue is a whopping 0.98 meaning headcount is nearly…
Read More

Selling a solution in SaaS

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 sets…
Read More