Quote Info

The Fundraising Market is Stable, Despite Public Market Fluctuations. The dollars in and out of the venture market are relatively constant. LPs are investing into venture capital at a steady, and likely increasing rate. Over the last five years, dollars into the venture industry has remained at or below the 12 year median. 2014 looks to be a bit of a stronger year. VCs are investing at a relatively constant pace and at a relatively constant average dollars per investment. The public market correction in consumer and enterprise stocks in February was real and significant, deflating consumer by 25% and enterprise by 40%+. Many of those companies have rebounded some since the lows, but institutional investors have broadly cycled from growth to value stocks. Valuations may be more varied but total capital invested in startups is constant.


Tomasz Tonguz

More Growth Strategy Stats

Software and online services are in a period of dizzying growth

Companies with longer contracts (2+ years) reported the lowest annual unit churn

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8