evaluating saas startups: the investor's perspective
TRANSCRIPT
#saasinvest
What you’re going to learn
1
2
3
What investors look for in the due diligence process
What signs indicate big opportunities to investors
What are the high-level metrics that matter for measuring company performance
Where do you start when evaluating a SaaS company?
#saasinvest
Three areas of focus
OperationalMetrics
DepartmentalMaturity
Stage ofEvolution
What are the high-level operational metrics that matter?
#saasinvest
Current Performance
Snapshot of financial health and growth prospects
Growth & Scalability
Operational Efficiency
#saasinvest
Helpful ratios
ARR:CAC LTV:CACCash:Bur
n
What do you look for when evaluating individual departmental
maturity?
#saasinvest
Evaluating departments
Sales Customersuccess
Engineering/product
Generaloperations
Marketing
Marketing
#saasinvest
Marketing roles
VP of Marketing / CMO
Content
Analytics
Public Relations
Tech
#saasinvest
Marketing metrics
Leads
Opportunities
Customers
Lead sources
Lead volume by
channel
#saasinvest
RJMetrics example
#saasinvest
Marketing tech
Data & Instrumentation
Marketing Automation
Lead Intel Creative
Sales
#saasinvest
Sales roles
VP of Sales / CRO
OpsExecution
#saasinvest
Sales metrics
Lead to Oppy
Oppy to Close
Leads
Opportunities
MRR per Rep
Avg Contract
Size
Customers
#saasinvest
Sales tech
CRMMotivation &
MoraleSales
EnablementContract
ManagementBilling
Management
Customer Success
#saasinvest
Customer success roles
Account Managers
VP Customer Success / CRO / Chief Customer Advocate
#saasinvest
Customer success metrics
Leads
Opportunities
Customers
ChurnEngageme
nt
Upsells & Revenue Expansio
n
Gross Margin
#saasinvest
Customer success tech
Engagement Communication Helpdesk
#saasinvest
RJMetrics example
Engineering & Product
#saasinvest
Engineering & product roles
VP Engineering / VP Product / CPO / CTO
SpecialistsGeneralists
#saasinvest
Engineering & product metrics
Net Promoter Score
Cost of R&D as % of Rev
Customer
Retention &
Usage
#saasinvest
Engineering & product tech
Version Control
Unit & Integration
Testing
Security Testing
Monitoring & Alerting
General operations
#saasinvest
General operations roles
Finance
Facilities Recruiting
Administrative
HR
#saasinvest
General operations metrics
Environmental growth inhibitors
Productivity
Thank you for joining us!