Scaling to $100 Million

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Mary D’Onofrio, Partner
Scaling to $100 Million

Scaling to
$100
Million
The 5 Lessons of
ARR (or CARR) is the North Star
1
Work towards high growth rates. Strong net and ...

Lesson 1: ARR is the North Star

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
0%
50%
100%
150%
200%
250%
230%
100%
135%
40%
110%
45%
80%
40%
80%
35%
Lesson ...

0%
40%
80%
120%
160%
200%
0% 50% 100% 150% 200%
Last Year’s Growth
Growth Endurance
Lesson 1: ARR is the North Star
Growth...

DECAY CURVE
BEST
80% growth
endurance
BETTER
75% growth
endurance
GOOD
70% growth
endurance
The Good, Better, and Best of ...

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
Lesson 1: ARR is the North Star
Retentions by ARR Scale
*All values in the abo...

Lesson 2: Win by Wide Margins

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
70% 70%
65% 65%
70%
40%
50%
60%
70%
80%
90%
100%
Lesson 2: Win by Wide Margins...

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
Lesson 2: Win by Wide Margins
Margin Structure
by ARR Scale
*All values in the...

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
95%
70% 70%
60%
50%
95%
50%
45%
30%
35%
70%
40%
30%
20% 20%
0%
10%
20%
30%
40%...

15
MONTHS
24
MONTHS
20
MONTHS
21
MONTHS
Average CAC Payback by ARR Bucket
30
MONTHS
$100MM+
$50-100MM
$25-50MM
$10-25MM
$1...

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
Lesson 2: Win by Wide Margins
FCF Margin of Revenue by ARR Scale
*All values i...

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
Lesson 2: Win by Wide Margins
Cash Conversion
Score by ARR
Scale
Cash Conversi...

Lesson 3: Know Your Worth

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
Lesson 3: Know Your Worth
Cloud Valuation Multiples by ARR Scale
Valuation
Mul...

33x
29x
27x
22x
20x
18x
15x 15x
10x
Average
Lesson 3: Know Your Worth
Cloud Valuation Multiples by Industry
* Companies wi...

0.0x
10.0x
20.0x
30.0x
40.0x
50.0x
60.0x
70.0x
80.0x
90.0x
0% 50% 100% 150% 200% 250% 300% 350%
Growth Rate
Lesson 3: Know...

Lesson 3: Know Your Worth
Average Round Size by ARR Bucket
$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
20
30
55
150
75

$100MM+
$50-100MM
$25-50MM
$10-25MM
$1-10MM
20%
15% 15%
10%
5%
0%
5%
10%
15%
20%
25%
30%
Lesson 3: Know Your Worth
Dilutio...

Lesson 4: The TL;DR
Plot Your Way to the Next Milestone

Lesson 4: The TL;DR – Plot Your Way to the Next Milestone
Average Benchmarks by ARR Scale
*All margin and growth rate valu...

ARR
Growth
Net
Retention
Gross
Retention
Gross
Margin
S&M
% Revenue
R&D
% Revenue
G&A
% Revenue
FCF
Margin
Average 200% 14...

Benchmarks for $10-25MM of ARR
*All values in the above chart are rounded to the nearest 5% for clarity
ARR
Growth
Net
Ret...

Benchmarks for $25-50MM of ARR
*All values in the above chart are rounded to the nearest 5% for clarity
ARR
Growth
Net
Ret...

Benchmarks for $50-100MM of ARR
*All values in the above chart are rounded to the nearest 5% for clarity
ARR
Growth
Net
Re...

Benchmarks for $100MM+ of ARR
*All values in the above chart are rounded to the nearest 5% for clarity
ARR
Growth
Net
Rete...

Bonus Lesson 5: Run the Public Playbook

LTM Revenue
Growth
LTM
Revenue ($MM)
Net
Retention
Gross
Margin
S&M
% Revenue
R&D
% Revenue
G&A
% Revenue
FCF
Margin
Avera...

Scaling to $100 Million
bvp.com/scale
@BessemerVP
@mcadonofrio

You are reading a preview.

Activate your 30 day free trial to continue reading.

Share SlideShare

Facebook
Twitter
LinkedIn

Embed

Size (px)

Show related SlideShares at end

WordPress Shortcode

Link

LinkedIn
Facebook
Twitter
Email

Replay

Top clipped slide

1 of 30 Ad

1 of 30 Ad