Both Sides of the Table

FEBRUARY 15, 2016

When you raise larger rounds there is more “due diligence,” which includes: calling customers, looking at financial metrics, doing cohort analysis (looking for trends like changes in churn rates), evaluating competitor positioning and understanding more of the competency of your executive team.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Both Sides of the Table

APRIL 21, 2020

We discussed why in Q4 you will see large renegotiations of SaaS contracts and increased churn rates. Nobody will be immune because in a bull market executives are paid to “innovate” so they sign software contracts and run projects. Harry posed these questions.

Marketing 263

Marketing Valuation Churn Rate Balance Sheet 263

VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churn rate below the category average? Software as a Service (Saas) benchmarks.

B2C 141

B2C Technical Review Startup Retention 141

YoungUpstarts

SEPTEMBER 7, 2014

It’s important to measure and analyze churn both by the number of accounts and the amount of revenue lost, but the best enterprise startups dig even deeper. They’ll segment their customers to analyze churn by category. Enterprise startups should aim for an annual churn rate under 10 percent.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

David Teten

DECEMBER 3, 2019

Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. ExitRound helps early stage companies identify buyers in smaller exits. . What’s Your VC Tech Stack?

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ConversionXL

AUGUST 13, 2019

And while that figure is promising, early-stage SaaS companies need a ton of growth to survive. In fact, SaaS companies with an annual growth rate of 20% or less have a 92% chance of failure, according to research by McKinsey. But only 400 software companies have made it to the $500M revenue mark. McKinsey & Company.

Metrics 117

Metrics SQL Retention Churn Rate 117

Startup Lessons Learned

MARCH 21, 2013

Here's what they have to say about churn rates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% Mark MacLeod, Chief Corporate Development Officer at Freshbooks, says that you need to get below a 5% monthly churn rate before you know you’ve got a business that’s ready to scale.

Analytics 167

Analytics Lean Metrics Churn Rate 167

maplebutter.com

JANUARY 8, 2013

When it comes to early stage investing – it’s all gut. Does it make sense to spend this time speaking about your early stage start-up when your product has not even entered Alpha testing? Typically its way more important to build product, and pull in early users to give you that feedback vs. speaking about it.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Cracking the Code

OCTOBER 10, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. When we first published Bessemer’s Top 10 Laws for Being "SaaS-y" in early 2008 in conjunction with our annual invitation-only SaaS CEO Summit, we were overwhelmed with the positive response and feedback we received.

Software Review 48

Software Review North America Europe Metrics 48