• 5 min read
Startup founder mistakes from 0 to 1

Zero to One (or 0 to 1) - is going from nothing to something, for SaaS companies this usually means going from pre-revenue to $1m in annual recurring revenue.  Given the zero base - it's the biggest leap that a company will have to achieve on its path to initial

2 months ago

SaaS Magic Number: measuring scaling efficiency

Tons of metrics can be calculated for any SaaS business. In order to determine how your start-up is performing in a business environment, it's essential to calculate the SaaS Magic Number and various other sales efficiency metrics. Although the metric is overlooked in the SaaS startup community, it’s no

3 years ago

If VC would've been a sport - it would've been Baseball

It's a pretty popular fact that greatest baseball players hit the ball every 1/3. The green line below show this as fairly consistent across the top-50 hitters historically (the 50th having 2839 hits, so it's quite reprentfull). While the greatest hitters do an average 15-20% a better job than

3 years ago

What does the Rule of 40 tell about a SaaS company?

The Rule of 40 emerged a few years back at a time when many SaaS companies started to go public. Unlike traditional public on-premise incumbents, SaaS companies do not repay instantly the customer acquisition costs (CAC) and require at least 6-12 months of payback period to recoup it. Capital markets

3 years ago

MRR (monthly recurring revenue): the ultimate guide for SaaS

After writing this post, I found out that it has gotten a bit out of proportion, so below is a short table of contents: Sections: * Intro * Metric vs Reporting (GAAP, IFRS) * Definition: what is MRR (monthly recurring revenue)? * Tracking MRR and why its important? * How to calculate MRR and its

3 years ago

  • IPO
  • 17 min read
Lyft IPO valuation: a US$20bn rideshare

Every IPO has a story, especially in the consumer technology sector. This one is a tale about bad and good, black and pink, uber vs lyft. Unlike many other markets, the ride-sharing market due to original huge fragmentation and regulation was significantly underlooked. Since 2010 when Uber and then Lyft,

4 years ago