2. About me
Founder Angel investor VC
More about me:
LinkedIn: www.linkedin.com/in/christophjanz
Point Nine Capital: www.pointninecap.com
Twitter: chrija
3. www.theangelvc.net
When I ๏ฌnd the time I blog at www.theangelvc.net, mainly about SaaS topics.
My SaaS KPI dashboard:
http://bit.ly/saasdashboard
8. Confuse MRR with Cash In๏ฌow
(or Bookings or Sales or Revenues)
9
worst practice
9. MRR:
โข Monthly Recurring Revenue
โข Shows how much revenue you make next month if you donโt win
any new customers
(assuming no churn, no upgrades/downgrades, etc.)
โข #1 SaaS metric. Much more important indicator than bookings or
cash in๏ฌow
(but cash in๏ฌow pays the bills!)
โข 2 customers
โข 1 on a $20/m monthly plan
โข 1 on a $120/y yearly plan
=> MRR = $30
Example:
11. Churn rate
# of customers who churned
# of customers who could have churned
Including customers who canโt cancel in the
denominator screws up your churn estimate!
If you include customers who canโt churn in
your churn calculation, youโll be hit by a bad
surprise once they can leave!
25. Do you know these cars? When small children take a tour in them,
they believe they are steering them around the curves.
If youโre attributing all conversions to your sales efforts youโre doing
something similar. :)
26. Find out how well your signups are converting
without being called by a salesperson.
A/B test and calculate the ROI on your sales
investments based on the conversion uplift.
28. โข True exponential growth is very, very rare in SaaS โ requires virality
which most SaaS products donโt have
โข Most SaaS companies grow linearly and with step changes
โข Even a modest exponential growth rate of 10% p.m. is very hard to
sustain for a longer period of time
Reading exponential growth into linear growth
numbers can lead to wrong conclusions
31. โข Investors want historic numbers, not just a snapshot
โข Many metrics are actionable โ they tell you what to focus on, when
to invest in acceleration, etc.
โข Metrics help you focus your team on what matters most
Because...