9 Learnings from 10 Years of SaaS Investing
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Slides from my "9 Learnings from 10 Years of SaaS Investing" talk at the 42 Investment Summit in Kiev in April 2019.
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9 Learnings from 10 Years of SaaS Investing
- 2. 9 Learnings from 10 Years of SaaS Investing Christoph Janz | Point Nine Capital | @chrija
- 6. www.theangelvc.net @chrija „Five ways to $100 million“ ARPA (in $ per year) 10 100 1,000 10,000 100,000 10,000 1,000 100,000 1,000,000 10,000,000 #ofcustomers Consumer, not B2B SaaS Some $100M SaaS companies Most $100M SaaS companies Some $100M SaaS companies
- 7. www.theangelvc.net @chrija „All animals are equal, but some animals are more equal than others.“
- 8. www.theangelvc.net @chrija Learning #1 There are 5 ways to $100 million, but some are more likely than others. There are 5 ways to $100 million, but some are more likely than others. There are 5 ways to $100 million, but some are more likely than others. There are 5 ways to $100 million, but some are more likely than others.
- 9. www.theangelvc.net @chrija Scaling paid marketing Marketing spend CACs Your projections Your actuals
- 10. www.theangelvc.net @chrija Learning #2 I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale. I won’t assume that PPC will easily scale.
- 11. www.theangelvc.net @chrija $-40.000 $-30.000 $-20.000 $-10.000 $- $10.000 $20.000 $30.000 $40.000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 MRR change by quarter New MRR from new customers Lost MRR (net MRR churn) Net new MRR The impact of churn $-40.000 $-30.000 $-20.000 $-10.000 $- $10.000 $20.000 $30.000 $40.000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 MRR change by quarter New MRR from new customers Lost MRR (net MRR churn) Net new MRR $-40.000 $-30.000 $-20.000 $-10.000 $- $10.000 $20.000 $30.000 $40.000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 MRR change by quarter New MRR from new customers Lost MRR (net MRR churn) Net new MRR
- 12. www.theangelvc.net @chrija 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 $- $50.000 $100.000 $150.000 $200.000 $250.000 $300.000 $350.000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 101 103 105 107 109 111 113 115 117 119 MRR by month MRR New/lost ratio The impact of churn
- 13. www.theangelvc.net @chrija Learning #3 If I can’t get my churn rate to 0, my growth will hit a ceiling. If I can’t get my churn rate to 0, my growth will hit a ceiling. If I can’t get my churn rate to 0, my growth will hit a ceiling. If I can’t get my churn rate to 0, my growth will hit a ceiling.
- 14. www.theangelvc.net @chrija T 2 D 3 ?
- 15. www.theangelvc.net @chrija T 2 D 3 ? Years to $100 million #ofcompanies
- 16. www.theangelvc.net @chrija Learning #4 I don’t have to get to $100 million in 7 years. I don’t have to get to $100 million in 7 years. I don’t have to get to $100 million in 7 years. I don’t have to get to $100 million in 7 years. I don’t have to get to $100 million in 7 years. I don’t have to get to $100 million in 7 years. I don’t have to get to $100 million in 7 years.
- 19. www.theangelvc.net @chrija Learning #5 I will not try to scale pre-maturely. I will not try to scale pre-maturely. I will not try to scale pre-maturely. I will not try to scale pre-maturely. I will not try to scale pre-maturely. I will not try to scale pre-maturely. I will not try to scale pre-maturely.
- 20. www.theangelvc.net @chrija SMB vs. Enterprise Pricing How you should be pricing SMBs Enterprises Your pricing Price SMBs Enterprises
- 21. www.theangelvc.net @chrija Learning #6 I will ask my enterprise customers for more money. I will ask my enterprise customers for more money. I will ask my enterprise customers for more money. I will ask my enterprise customers for more money. I will ask my enterprise customers for more money. I will ask my enterprise customers for more money.
- 22. www.theangelvc.net @chrija You get a Term Sheet nobody wants to invest everybody wants to invest Time Investor interest
- 23. www.theangelvc.net @chrija Learning #7 I will run a fundraising process. I will run a fundraising process. I will run a fundraising process. I will run a fundraising process. I will run a fundraising process. I will run a fundraising process. I will run a fundraising process.
- 24. www.theangelvc.net @chrija Power Law Company rank Return How you think What it really looks like 301 15 Power Law looks like
- 25. www.theangelvc.net @chrija Learning #8 VCs need unicorns to survive. VCs need unicorns to survive. VCs need unicorns to survive. VCs need unicorns to survive. VCs need unicorns to survive. VCs need unicorns to survive. VCs need unicorns to survive.
- 26. www.theangelvc.net @chrija „The 48 Types of VP Sales“ YOU
- 27. www.theangelvc.net @chrija Learning #9 I will not hire a „Big Company VP of Sales“ before $1-2M ARR. I will not hire a „Big Company VP of Sales“ before $1-2M ARR. I will not hire a „Big Company VP of Sales“ before $1-2M ARR.
- 28. Thank you! Christoph Janz | Point Nine Capital | @chrija More about all of this: www.theangelvc.net + SaaStr + Tomasz Tunguz + David Skok …