Sean Jacobsohn, Partner @ Norwest Venture Partners Scott Beechuk, Partner @ Norwest Venture Partners Kristina Shen, General Partner @ Andreessen Horowitz Top of mind for many startups during a downturn is the question, “How do we balance investment in growing our business while maintaining a modest burn to extend our time to next funding?” In this session we will explore some creative techniques to grow your business with efficiency. Hear from three VC partners with experience successfully co-founding, leading, and growing startups during previous market downturns

1. Kristina Shen
General Partner
Andreessen Horowitz
@kshenster
Scott Beechuk
Partner
Norwest
@sbeechuk
Increasing Runway without
Sacrificing Growth
Sean Jacobsohn
Partner
Norwest
@sjacobsohn 1

2. Burn Management -
Not One Size Fits All

3. Lots of Great Content On Burn Mgmt
3

4. Rule #1 → Be Default Alive
Solve For The Next Funding/Exit Event
4

5. After That… Build an Efficient Business
David Sacks burn multiple chart
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6. After That… Build an Efficient Business
David Sacks burn multiple chart
6
Challenges
- Wide range of R&D costs (e.g. infra,
MVP vs platform)
- Does not factor in stage

7. Burn Management Differs By Stage
7
3x
Pre Everything
(Product/Rev)
Early PMF
($0-$5M ARR)
Scaling
($5M ARR+)
2x
1x
Burn
Mult
Best
Better
Good

8. CAC Payback, A Better Measurement Later Stage
8
CAC Payback Definition
CAC payback =
Sales & Marketing
(new MRR x Gross Margin %)

9. CAC Payback, A Better Measurement Later Stage
9
Factors In Health Of…
- GTM efficiency
- ARR growth
- Churn
- Gross margin
Intentionally excludes your biggest
cost and most valuable asset
- R&D!
CAC Payback Definition
CAC payback =
Sales & Marketing
(new MRR x Gross Margin %)

10. Transition From Burn Multiple to CAC Payback
When Scaling
10
3x
Pre Everything
(Product/Rev)
Early PMF
($0-$5M ARR)
Scaling
($5M ARR+)
2x
1x
Burn
Mult
Working GTM
($15M ARR+)
Best
Better
Good

11. Transition From Burn Multiple to CAC Payback
When Scaling
11
3x
Pre Everything
(Product/Rev)
Early PMF
($0-$5M ARR)
Scaling
($5M ARR+)
2x
1x
Burn
Mult
Working GTM
($15M ARR+)
24
12
6
Cac
Payback
(Months)
Best
Better
Good
Best
Better
Good

12. Non-Linear Growth
Getting leverage from partners

13. Leverage from Partners
Partner fit & motivation is key
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14. Leverage from Partners - Stories
Partner fit & motivation is key
Outflank competition & enter new markets
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15. Leverage from Partners - Stories
Partner fit & motivation is key
Outflank competition & enter new markets
Enablement is more important than
signature
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16. Leverage from Partners - Stories
Partner fit & motivation is key
Outflank competition & enter new markets
Enablement is more important than
signature
Reciprocation & quick wins gain momentum
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17. Leverage from Partners - Stories
Partner fit & motivation is key
Outflank competition & enter new markets
Enablement is more important than
signature
Reciprocation & quick wins gain momentum
Can lead to eventual exit strategy
17

18. DIY Growth Hacks
SaaS bookings tips on the cheap

19. DIY Growth Hacks
ABC → EBC (Everybody Be Closing)
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20. DIY Growth Hacks - Stories
ABC → EBC (Everybody Be Closing)
Apple pie and cookie the pipeline
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21. DIY Growth Hacks - Stories
ABC → EBC (Everybody Be Closing)
Apple pie and cookie the pipeline
Welterweight PLG
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22. DIY Growth Hacks - Stories
ABC → EBC (Everybody Be Closing)
Apple pie and cookie the pipeline
Welterweight PLG
Throw out the trash, focus on the fresh food
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23. DIY Growth Hacks - Stories
ABC → EBC (Everybody Be Closing)
Apple pie and cookie the pipeline
Welterweight PLG
Throw out the trash, focus on the fresh food
Hunt down old customers in new jobs
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24. Closing Key Takeaways
Understand the root ROI of your spend
Invest early in partnerships to drive a multiplier effect in GTM
Focus is key, creativity leads to doing less with more
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25. How to get in touch
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Kristina Shen
General Partner
Andreessen Horowitz
@kshenster
kristina@a16z.com
Scott Beechuk
Partner
Norwest
@sbeechuk
sbeechuk@nvp.com
Sean Jacobsohn
Partner
Norwest
@sjacobsohn
sjacobsohn@nvp.com

26. THANK YOU