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SaaS 101: Metrics & Best Practices
March 13, 2015
Nicolas Wittenborn, Point Nine Capital
Founded 2011 in Berlin
Investing €100,000-1,000,000
Raised €45M
Team of 8
Who’s Point Nine
Vancouver
Washington D.C
Auckland
Edmonton
New York
San Francisco
BerlinRiga
Point Nine ’s SaaS
Paris
Barcelona
Warsaw
III.
Best Practices
II. Important SaaS Metric
s
I. What’s SaaS?
I. What’s SaaS?
aaSSoftware as a Service
No installationContinuos updates
Accessible from everywhere
Why VCs like SaaS companies
Recurring revenues
High margins
Global scale from day 1
The SaaS market is quite ‘frothy’
which might change soon**
* Data analysis by Tom Tunguz **Jason Lemkin: ’Unfortunately, SaaS Start-Up Valuations Are About To Fall by 50%’
?
*
Global SaaS Market SizeROW21%
France3%
Canada4%
Germany6%
UK6%
US60%
Global SaaS Market Volume*
shows strong US bias
* Siemer's SaaS Industry Report 2013
Founded in Copenhagen 2007
Move to US HQ in 2009
IPO ($ZEN) in 2014
Europe still produces great SaaS companies
II. Important SaaS Metric
s
Monthly Recurring Revenue(MRR)
negative churn
Extension MRR > MRR churn
Churn & Retention: Cohort Analysis
Yours truly: ‘Cohort Analysis Q&A’
LTV
CAC
III.
Best Practices
Incentivised referrals are a great ‘growth hack’*
* if you have a suitable (freemium) model
Get to WOW! fast*
* a great on-boarding can increase conversions significantly
???
You might be too cheap!
* if you provide real value & haven’t raised prices since you launched
???
Price increase
Valuable content = King
One time effort, long time effect
There is no silver bullet
Just the Long, Slow, SaaS Ramp of Death*
* Gail Goodman: How to negotiate the long, Slow, SaaS Ramp of Death
At least until now…
Hyper-growth?
Outlook: SaaS 2015
* Edited Social + Capital Chart
Ressources•Blogs:
• David Skok http://www.forentrepreneurs.com/ • Tom Tunguz http://tomtunguz.com/ • Christoph Janz http://christophjanz.blogspot.de/ • Jason Lemkin http://saastr.com/
•Slides: • 9 Worst Practices in SaaS Metrics: http://www.slideshare.net/PointNineCap/9-worst-practices-insaas-metrics • Siemer SaaS Industry Report 2013: http://www.slideshare.net/SiemerAssoc/sa-saa-s-industry-report-summer-2013-25007137?ref=http://www.siemer.com/research/summer-2013-saas-industry-report/
•Secrets to raising VC (Mamoon Hamid): http://www.slideshare.net/03133938319/saastr •More:
• Quora SaaS topics: http://www.quora.com/Software-as-a-Service-SaaS • Long, slow, SaaS Ramp of Death: http://pawel.ch/post/71104054756/the-long-slow-saas-ramp-of-death-i-have-just • Cohort Analysis Q&A: http://heyni.co/post/79862265851/cohort-analysis-a-practical-q-a • ‘Unfortunately SaaS Startup Valuations about to fall by 50%’: http://saastr.com/2014/04/29/unfortunately-saas-start-up-valuations-are-about-to-fall-by-50/
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