The right contribution margin in software

Contribution margin is one of the most important metrics in SaaS. It’s revenue from a certain set of customers (a cohort) less the cost of acquiring and servicing the customers over time.   Customers are generally grouped into annual cohorts – in……

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Building pipeline with SDR’s

Building pipeline with SDR’s I read Trish Bertuzzi’s book ‘The Sales Development Playbook’ and it was by far one of the best sales books I’ve read in a while. The book focuses heavily on building pipeline with SDR teams. This is……

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4 measures of software health

In software, there are a few ways to measure the health of the customer base and stickiness of the product. Zuora does a nice job of showing four measures of customer health in their S1. Processed Transaction Volume Zuora’s first……

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First to market is meaningless

There are countless examples of ‘first to market’ not being a sustainable competitive advantage.  Comparing the 2018 public offering of Spotify to Pandora’s original IPO in 2011 is a major example.  Below are some excerpts from Pandora’s S1 (official IPO……

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M&A in venture capital is strong

We received Dow Jones VC Edge report for Q2 2019.  The data is excellent and shows the trends in venture capital.   Below is a breakdown of M&A in venture.  Note that LTM means ‘last twelve months’. M&A of venture backed……

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