In other words, the typical round size for SaaS companies hasn’t changed materially over the past 16 years but the number of rounds has doubled, which has doubled the amount of capital a startup raises in aggregate before IPO. At least on the surface, the data indicates SaaS companies aren’t more efficient.
That pattern may be driven by an increasingly friendly financing environment or because of increased capital needs of the business or many other reasons. So the next question to answer is capital efficiency. In a future analysis, I’ll calculate the ratio of revenue dollars to VC dollars invested to get a sense of the reality of cloud capital efficiency per revenue dollar.
Tomasz TonguzHow Often Should The Pricing Committee Be Meeting And Making Changes?
Internet Sales strategies have a significantly lower CAC of just $0.42
At Facebook, 15 percent of tech roles are staffed by women
Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.
The average SaaS company spends just 6 hours determining their pricing strategy
The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18