Here are the slides from my talk yesterday at Point Nine Capital‘s SaaS Founder Meetup. Point Nine is a Berlin-based seed fund with investments across the Globe. Their partner Christoph Janz has a real focus on SaaS and as a result they have built a broad global SaaS portfolio. They were a seed investor in Zendesk and have invested in many other great SaaS companies. They co-invested in Unbounce with me a few year’s back. Yesterday’s event (still going on today) was full of amazing founders sharing vast amounts of knowledge. I’ll post some notes from it later this week.
In the meantime, here are my slides on the things you need to know about when to hire a CFO, what they do, etc. Plus some random topics to consider once you have a CFO in the building. I’ve been doing this for so long that I take it for granted. But what I learned from the founders and VCs at the event yesterday was that many (in fact, most) startups don’t get to the point where they need a real, full time CFO. And so, this whole subject was foreign territory.
Continue reading The High performance CFO
I’m guessing that most everyone who reads this blog uses Dropbox. The four year old company has over 50M users and adds a new user every second! It can be dangerous to use such run away successes as lessons when building your own startup. After all, most startups never achieve this level of success.
Still, a recent article in Forbes Magazine shed some light on their numbers and their success. If nothing else, these should serve as high level targets showing what is possible with a freemium SaaS company.
Continue reading Saas Math Case Study: Dropbox
So far in the SaaS Math series, we have looked at why investors love SaaS, definitions of the key terms in SaaS math and last week we looked at user acquisition math. This week we’re talking about activation, retention and its polar opposite – churn. As you will see, churn and retention are the most important metrics to the long-term success of a SaaS business.
To recap, activation is just getting that 1st use of your product or service. Churn is the % of users / customers that abandon the service over time. This can be measured weekly, monthly, quarterly, etc. You will want to measure churn for users and churn for customers (assuming you have a free trial or freemium product). Retention is the inverse – the % of users that you keep.
Continue reading SaaS Math: Activation, Retention and Churn
For the 3rd instalment of SaaS Math, we’re going to dig into the 1st step in the conversion funnel: acquiring users. For this and all posts on the conversion funnel, I recommend you read/ watch Dave McClure’s excellent talk on Metrics for Pirates.
As the name suggests, acquisition is all about driving new users, readers or buyers depending on whether you’re running a SaaS, media or e-commerce business respectively. We’re just focusing on SaaS here but many of these principles flow into the other business types.
Continue reading The Saas Math Funnel: Acquisition