Control saas churn

The bane of every SaaS business is churn. Nothing is more discouraging than a great sales month being offset by a heavy month of churn. Churn happens at every SaaS business and the general rule of thumb is 20%+ of……

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Cash efficiency compounds your ownership

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 not linear. In……

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Revenue multiples in B2C

Below are revenue multiples for publicly traded consumer tech companies we follow (B2C). The data is as of March 31st. Industries and therefore multiples vary widely. Commentary is below. Social media fell hard to 6.9x. The highs in 2017 were……

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Layoffs done right

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 (less than 30 people), everyone works in the……

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How to create a market

One of our companies had a sales consultant audit their sales team and methodology.  Our portfolio company’s market has some interesting traits: i) the market is greenfield and almost all homegrown; ii) ‘no decision’ is the company’s primary competitor; and……

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