VC or bootstrapping: how does it impact revenue growth in the early years? New comprehensive benchmark analysis combining ChartMogul SaaS revenue data + Dealroom VC data for the first time ๐ค A few insights: 1๏ธโฃ ๐ง๐ผ๐ฝ ๐พ๐๐ฎ๐ฟ๐๐ถ๐น๐ฒ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐๐ต๐ฒ $๐ญ๐ ๐๐ฅ๐ฅ ๐บ๐ถ๐น๐ฒ๐๐๐ผ๐ป๐ฒ ๐ผ๐ป๐น๐ ๐ฐ ๐บ๐ผ๐ป๐๐ต๐ ๐น๐ฎ๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ป ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. VC funding boosts growth but isn't the only factor. 2๏ธโฃ ๐๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ณ๐ฎ๐๐๐ฒ๐ฟ ๐๐ผ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐. VC-backed companies grow quicker but rely more on financial support. 3๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐๐ฒ๐ฟ๐ฒ ๐ต๐ถ๐ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐ฏ๐ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐๐๐ฟ๐ป, ๐๐ต๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ๐ถ๐ฟ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น. Bootstrapped companies are not immune to the unfavorable environment but maintain steadier growth. 4๏ธโฃ ๐ก๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฝ๐ถ๐ฐ๐ธ๐ ๐๐ฝ ๐๐น๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐๐๐ถ๐น๐น ๐๐๐ฟ๐๐ด๐ด๐น๐ฒ ๐๐ผ ๐ฟ๐ฒ๐ถ๐ด๐ป๐ถ๐๐ฒ ๐ด๐ฟ๐ผ๐๐๐ต. Bootstrappers adapt quickly post-pandemic, while VC-backed firms use cash reserves but face challenges as investments stall. 5๏ธโฃ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐ฟ๐ฒ๐๐ฎ๐ถ๐ป ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐ฒ๐พ๐๐ฎ๐น๐น๐ ๐ฎ๐ฐ๐ฟ๐ผ๐๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐บ๐ผ๐ฑ๐ฒ๐น๐. VC-backed startups have seen a decline in customer retention rates, highlighting their challenges while trying to scale. 6๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐น๐ฒ๐ฎ๐ฑ ๐ถ๐ป ๐ป๐ฒ๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป. With new business slowing, SaaS companies pivoted their strategies and relied more on expansion to drive growth. Full report ๐๐ https://lnkd.in/eRF44TKV #SaaS #growth #VC #bootstrapped #startups #chartmogul ๐ค๐ค Sofia Faustino Nick Franklin Yoram Wijngaarde
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New insights about revenues from day zero onwards, by combining Dealroom data with ChartMogul๐
VC or bootstrapping: how does it impact revenue growth in the early years? New comprehensive benchmark analysis combining ChartMogul SaaS revenue data + Dealroom VC data for the first time ๐ค A few insights: 1๏ธโฃ ๐ง๐ผ๐ฝ ๐พ๐๐ฎ๐ฟ๐๐ถ๐น๐ฒ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐๐ต๐ฒ $๐ญ๐ ๐๐ฅ๐ฅ ๐บ๐ถ๐น๐ฒ๐๐๐ผ๐ป๐ฒ ๐ผ๐ป๐น๐ ๐ฐ ๐บ๐ผ๐ป๐๐ต๐ ๐น๐ฎ๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ป ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. VC funding boosts growth but isn't the only factor. 2๏ธโฃ ๐๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ณ๐ฎ๐๐๐ฒ๐ฟ ๐๐ผ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐. VC-backed companies grow quicker but rely more on financial support. 3๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐๐ฒ๐ฟ๐ฒ ๐ต๐ถ๐ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐ฏ๐ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐๐๐ฟ๐ป, ๐๐ต๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ๐ถ๐ฟ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น. Bootstrapped companies are not immune to the unfavorable environment but maintain steadier growth. 4๏ธโฃ ๐ก๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฝ๐ถ๐ฐ๐ธ๐ ๐๐ฝ ๐๐น๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐๐๐ถ๐น๐น ๐๐๐ฟ๐๐ด๐ด๐น๐ฒ ๐๐ผ ๐ฟ๐ฒ๐ถ๐ด๐ป๐ถ๐๐ฒ ๐ด๐ฟ๐ผ๐๐๐ต. Bootstrappers adapt quickly post-pandemic, while VC-backed firms use cash reserves but face challenges as investments stall. 5๏ธโฃ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐ฟ๐ฒ๐๐ฎ๐ถ๐ป ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐ฒ๐พ๐๐ฎ๐น๐น๐ ๐ฎ๐ฐ๐ฟ๐ผ๐๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐บ๐ผ๐ฑ๐ฒ๐น๐. VC-backed startups have seen a decline in customer retention rates, highlighting their challenges while trying to scale. 6๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐น๐ฒ๐ฎ๐ฑ ๐ถ๐ป ๐ป๐ฒ๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป. With new business slowing, SaaS companies pivoted their strategies and relied more on expansion to drive growth. Full report ๐๐ https://lnkd.in/eRF44TKV #SaaS #growth #VC #bootstrapped #startups #chartmogul ๐ค๐ค Sofia Faustino Nick Franklin Yoram Wijngaarde
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The Changing Landscape of Startup Valuations: Beyond Financial Metrics ๐๐ก In the world of business, valuing a company has always been a mix of art and science, as Warren Buffett famously put it. Traditionally, financial performance metrics like revenue and EBITDA played a crucial role in determining a company's value. However, the rise of startups with limited or negative revenues has led to a shift towards non-financial metrics. ๐ Embracing Non-Financial Metrics ๐ Startups, especially those with minimal revenues, now rely heavily on non-financial indicators like subscriber count, conversion rates, user retention, and customer lifetime value. These metrics provide valuable insights into user engagement, customer acquisition, and market potential, helping startups gauge their growth prospects. ๐ Assessing Market Interest & Potential ๐ In the fast-paced world of innovation, financial metrics alone can't paint the whole picture. Non-financial metrics empower startups to connect with their audience, analyze marketing strategies, and measure the value they deliver to customers. Metrics like CAC and CLTV help identify the effectiveness of sales and marketing efforts, paving the way for sustainable long-term growth. โ ๏ธ Navigating Challenges โ ๏ธ Despite their advantages, non-financial metrics come with challenges. Startups must accurately measure and predict these metrics to avoid overestimating their potential. Some startups may focus on gaining a high number of subscribers, but the real challenge lies in retaining these customers and ensuring long-term loyalty. ๐ฆ The Unicorn Complex ๐ฆ While relying on non-financial metrics has helped startups secure funding, it has also led to challenges for high-profile companies once hailed as unicorns. Some of these companies struggle to achieve profitability or deliver on promised financial returns, raising concerns about their long-term viability. ๐ข Balancing the Game of Multiples ๐ข Startups must strike a delicate balance between financial and non-financial metrics. While the latter provides insights into market potential, financial metrics like revenue growth and profitability anchor stability. It's the fusion of both worlds that enables a more comprehensive and accurate assessment of a startup's true potential. In the ever-evolving startup landscape, a balanced approach to valuation is the key to sustainable growth and success. ๐ฑ๐ผ #Startups #Valuation #FinancialMetrics #NonFinancialMetrics #Unicorn #BusinessInsights ๐๐ก๐
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๐ค Why SaaS Continues to Win Investor Confidence ๐ค The latest data from PitchBook reveals an interesting trend in the tech sector: SaaS companies are expected to outperform the cross-vertical average by a net 5.5% on an annualized basis. This underscores the sustained appeal of SaaS for venture capitalists and investors. Here are three compelling reasons for this confidence: โช Scalability: SaaS companies can scale rapidly at a low incremental cost (McKinsey). โช Stable Revenue: Subscription models, which are projected to account for 53% of software revenue by year-end, offer the predictability that investors love (Gartner). โช Innovative Edge: AI and ML integrations in SaaS are forecasted to contribute an additional $98 billion in revenues by 2024 (IDC). In the digital economy, SaaS isn't just growing; it's strategically evolving. For VCs and investors, that's an opportunity too good to miss. #SaaS #Startups #VentureCapital #TechTrends #Investment #Entrepreneurship Sources: PitchBook, McKinsey, Gartner, IDC
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ChartMogul's latest Growth Report is well worth a read! ๐ค Our Senior Manager of Insights Sofia Faustino partnered with Dealroom.co to put together this incredibly comprehensive benchmark analysis comparing how growth at bootstrapped vs VC-backed SaaS companies stack up! ๐
๐ ๐โ๐๐ฒ ๐๐ฝ๐ฒ๐ป๐ ๐๐ต๐ฒ ๐น๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ๐ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ป๐ด ๐ด๐ฟ๐ผ๐๐๐ต ๐๐ฟ๐ฒ๐ป๐ฑ๐ ๐ณ๐ฟ๐ผ๐บ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฎ๐ป๐ฑ ๐ฉ๐ ๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. Now, I am really excited to announce the release of our new SaaS Growth Report, in partnership with Dealroom.co. Whether you're VC-backed or bootstrapped, this report provides a blueprint to help you set growth expectations based on the growth path you select. Six insights below: 1๏ธโฃ ๐ง๐ผ๐ฝ ๐พ๐๐ฎ๐ฟ๐๐ถ๐น๐ฒ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐๐ต๐ฒ $๐ญ๐ ๐๐ฅ๐ฅ ๐บ๐ถ๐น๐ฒ๐๐๐ผ๐ป๐ฒ ๐ผ๐ป๐น๐ ๐ฐ ๐บ๐ผ๐ป๐๐ต๐ ๐น๐ฎ๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ป ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. VC funding boosts growth but isn't the only factor. 2๏ธโฃ ๐๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ณ๐ฎ๐๐๐ฒ๐ฟ ๐๐ผ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐. VC-backed companies grow quicker but rely more on financial support. 3๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐๐ฒ๐ฟ๐ฒ ๐ต๐ถ๐ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐ฏ๐ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐๐๐ฟ๐ป, ๐๐ต๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ๐ถ๐ฟ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น. Bootstrapped companies are not immune to the unfavorable environment but maintain steadier growth. 4๏ธโฃ ๐ก๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฝ๐ถ๐ฐ๐ธ๐ ๐๐ฝ ๐๐น๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐๐๐ถ๐น๐น ๐๐๐ฟ๐๐ด๐ด๐น๐ฒ ๐๐ผ ๐ฟ๐ฒ๐ถ๐ด๐ป๐ถ๐๐ฒ ๐ด๐ฟ๐ผ๐๐๐ต. Bootstrappers adapt quickly post-pandemic, while VC-backed firms use cash reserves but face challenges as investments stall. 5๏ธโฃ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐ฟ๐ฒ๐๐ฎ๐ถ๐ป ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐ฒ๐พ๐๐ฎ๐น๐น๐ ๐ฎ๐ฐ๐ฟ๐ผ๐๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐บ๐ผ๐ฑ๐ฒ๐น๐. VC-backed startups have seen a decline in customer retention rates, highlighting their challenges while trying to scale. 6๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐น๐ฒ๐ฎ๐ฑ ๐ถ๐ป ๐ป๐ฒ๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป. With new business slowing, SaaS companies pivoted their strategies and relied more on expansion to drive growth. Dive into more insights ๐ https://lnkd.in/eKE-cvuv #SaaS #growth #VC #bootstrapped #startups #chartmogul
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Tech entrepreneurs (and want-trepreneurs ๐ !), before deciding to raise money or not... ๐ You already know all about bootstrapping vs VC from the founder's perspective - dilution, time spent fundraising, terms, growth pressure, etc. What about the actual growth paths that follow? At ChartMogul, Sofia Faustino's latest report gets really deep into cross-sectional data to provide critical insights. Take a look before you make any decision, you might be surprised! ๐ถ
๐ ๐โ๐๐ฒ ๐๐ฝ๐ฒ๐ป๐ ๐๐ต๐ฒ ๐น๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ๐ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ป๐ด ๐ด๐ฟ๐ผ๐๐๐ต ๐๐ฟ๐ฒ๐ป๐ฑ๐ ๐ณ๐ฟ๐ผ๐บ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฎ๐ป๐ฑ ๐ฉ๐ ๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. Now, I am really excited to announce the release of our new SaaS Growth Report, in partnership with Dealroom.co. Whether you're VC-backed or bootstrapped, this report provides a blueprint to help you set growth expectations based on the growth path you select. Six insights below: 1๏ธโฃ ๐ง๐ผ๐ฝ ๐พ๐๐ฎ๐ฟ๐๐ถ๐น๐ฒ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐๐ต๐ฒ $๐ญ๐ ๐๐ฅ๐ฅ ๐บ๐ถ๐น๐ฒ๐๐๐ผ๐ป๐ฒ ๐ผ๐ป๐น๐ ๐ฐ ๐บ๐ผ๐ป๐๐ต๐ ๐น๐ฎ๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ป ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. VC funding boosts growth but isn't the only factor. 2๏ธโฃ ๐๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ณ๐ฎ๐๐๐ฒ๐ฟ ๐๐ผ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐. VC-backed companies grow quicker but rely more on financial support. 3๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐๐ฒ๐ฟ๐ฒ ๐ต๐ถ๐ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐ฏ๐ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐๐๐ฟ๐ป, ๐๐ต๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ๐ถ๐ฟ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น. Bootstrapped companies are not immune to the unfavorable environment but maintain steadier growth. 4๏ธโฃ ๐ก๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฝ๐ถ๐ฐ๐ธ๐ ๐๐ฝ ๐๐น๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐๐๐ถ๐น๐น ๐๐๐ฟ๐๐ด๐ด๐น๐ฒ ๐๐ผ ๐ฟ๐ฒ๐ถ๐ด๐ป๐ถ๐๐ฒ ๐ด๐ฟ๐ผ๐๐๐ต. Bootstrappers adapt quickly post-pandemic, while VC-backed firms use cash reserves but face challenges as investments stall. 5๏ธโฃ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐ฟ๐ฒ๐๐ฎ๐ถ๐ป ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐ฒ๐พ๐๐ฎ๐น๐น๐ ๐ฎ๐ฐ๐ฟ๐ผ๐๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐บ๐ผ๐ฑ๐ฒ๐น๐. VC-backed startups have seen a decline in customer retention rates, highlighting their challenges while trying to scale. 6๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐น๐ฒ๐ฎ๐ฑ ๐ถ๐ป ๐ป๐ฒ๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป. With new business slowing, SaaS companies pivoted their strategies and relied more on expansion to drive growth. Dive into more insights ๐ https://lnkd.in/eKE-cvuv #SaaS #growth #VC #bootstrapped #startups #chartmogul
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Interesting data from Sofia's report released yesterday, comparing the growth of bootstrapped and VC-backed SaaS companies. Sofiaโs report shows that VC-backed companies grow faster than companies that are bootstrapped. That said, bootstrappers adapted to market volatility and stabilized growth sooner than VC-backed firms, during what has been three erratic years in SaaS. This demonstrates the resilience of bootstrapped companies, which lack the financial safety net of their VC-backed counterparts.
๐ ๐โ๐๐ฒ ๐๐ฝ๐ฒ๐ป๐ ๐๐ต๐ฒ ๐น๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ๐ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ป๐ด ๐ด๐ฟ๐ผ๐๐๐ต ๐๐ฟ๐ฒ๐ป๐ฑ๐ ๐ณ๐ฟ๐ผ๐บ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฎ๐ป๐ฑ ๐ฉ๐ ๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. Now, I am really excited to announce the release of our new SaaS Growth Report, in partnership with Dealroom.co. Whether you're VC-backed or bootstrapped, this report provides a blueprint to help you set growth expectations based on the growth path you select. Six insights below: 1๏ธโฃ ๐ง๐ผ๐ฝ ๐พ๐๐ฎ๐ฟ๐๐ถ๐น๐ฒ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐๐ต๐ฒ $๐ญ๐ ๐๐ฅ๐ฅ ๐บ๐ถ๐น๐ฒ๐๐๐ผ๐ป๐ฒ ๐ผ๐ป๐น๐ ๐ฐ ๐บ๐ผ๐ป๐๐ต๐ ๐น๐ฎ๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ป ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. VC funding boosts growth but isn't the only factor. 2๏ธโฃ ๐๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ณ๐ฎ๐๐๐ฒ๐ฟ ๐๐ผ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐. VC-backed companies grow quicker but rely more on financial support. 3๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐๐ฒ๐ฟ๐ฒ ๐ต๐ถ๐ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐ฏ๐ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐๐๐ฟ๐ป, ๐๐ต๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ๐ถ๐ฟ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น. Bootstrapped companies are not immune to the unfavorable environment but maintain steadier growth. 4๏ธโฃ ๐ก๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฝ๐ถ๐ฐ๐ธ๐ ๐๐ฝ ๐๐น๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐๐๐ถ๐น๐น ๐๐๐ฟ๐๐ด๐ด๐น๐ฒ ๐๐ผ ๐ฟ๐ฒ๐ถ๐ด๐ป๐ถ๐๐ฒ ๐ด๐ฟ๐ผ๐๐๐ต. Bootstrappers adapt quickly post-pandemic, while VC-backed firms use cash reserves but face challenges as investments stall. 5๏ธโฃ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐ฟ๐ฒ๐๐ฎ๐ถ๐ป ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐ฒ๐พ๐๐ฎ๐น๐น๐ ๐ฎ๐ฐ๐ฟ๐ผ๐๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐บ๐ผ๐ฑ๐ฒ๐น๐. VC-backed startups have seen a decline in customer retention rates, highlighting their challenges while trying to scale. 6๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐น๐ฒ๐ฎ๐ฑ ๐ถ๐ป ๐ป๐ฒ๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป. With new business slowing, SaaS companies pivoted their strategies and relied more on expansion to drive growth. Dive into more insights ๐ https://lnkd.in/eKE-cvuv #SaaS #growth #VC #bootstrapped #startups #chartmogul
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FOUNDER | SPEAKER | AUTHOR | INNOVATOR | Async Work Advocate | Helping Companies Scale Remotely | Time Doctor - Running Remote - Staff.com
Curious if bootstrapped SaaS companies stack up against VC-backed ones? ChartMogulโs latest report breaks it down, and guess what? Theyโre in pretty much the same boat when it comes to net revenue retention and ARR growth. Iโve always believed that bootstrapping is the way to go for long-term profitability, and this data just backs it up. Huge shoutout to Megan Tennant and Bianca Wilk at ChartMogul for letting me share my thoughts on this. Special thanks to Sofia Faustino for sharing! Dive into the full report to get the lowdown on SaaS growth. ๐ Check out the full report here: https://lnkd.in/ewJ7s4dR
๐ ๐โ๐๐ฒ ๐๐ฝ๐ฒ๐ป๐ ๐๐ต๐ฒ ๐น๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ๐ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ป๐ด ๐ด๐ฟ๐ผ๐๐๐ต ๐๐ฟ๐ฒ๐ป๐ฑ๐ ๐ณ๐ฟ๐ผ๐บ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฎ๐ป๐ฑ ๐ฉ๐ ๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. Now, I am really excited to announce the release of our new SaaS Growth Report, in partnership with Dealroom.co. Whether you're VC-backed or bootstrapped, this report provides a blueprint to help you set growth expectations based on the growth path you select. Six insights below: 1๏ธโฃ ๐ง๐ผ๐ฝ ๐พ๐๐ฎ๐ฟ๐๐ถ๐น๐ฒ ๐ฏ๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐ฐ๐ต ๐๐ต๐ฒ $๐ญ๐ ๐๐ฅ๐ฅ ๐บ๐ถ๐น๐ฒ๐๐๐ผ๐ป๐ฒ ๐ผ๐ป๐น๐ ๐ฐ ๐บ๐ผ๐ป๐๐ต๐ ๐น๐ฎ๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ป ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐. VC funding boosts growth but isn't the only factor. 2๏ธโฃ ๐๐ผ๐ผ๐๐๐๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐ฎ๐ฑ๐ฎ๐ฝ๐ ๐ณ๐ฎ๐๐๐ฒ๐ฟ ๐๐ผ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐. VC-backed companies grow quicker but rely more on financial support. 3๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐๐ฒ๐ฟ๐ฒ ๐ต๏ฟฝ๏ฟฝ๏ฟฝ๏ฟฝ๐ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐ฏ๐ ๐๐ต๐ฒ ๐ฑ๐ผ๐๐ป๐๐๐ฟ๐ป, ๐๐ต๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ๐ถ๐ฟ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น. Bootstrapped companies are not immune to the unfavorable environment but maintain steadier growth. 4๏ธโฃ ๐ก๐ฒ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฝ๐ถ๐ฐ๐ธ๐ ๐๐ฝ ๐๐น๐ถ๐ด๐ต๐๐น๐ ๐ฏ๐๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐๐๐ถ๐น๐น ๐๐๐ฟ๐๐ด๐ด๐น๐ฒ ๐๐ผ ๐ฟ๐ฒ๐ถ๐ด๐ป๐ถ๐๐ฒ ๐ด๐ฟ๐ผ๐๐๐ต. Bootstrappers adapt quickly post-pandemic, while VC-backed firms use cash reserves but face challenges as investments stall. 5๏ธโฃ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฏ๐ฒ๐น๐ผ๐ $๐ญ๐ ๐๐ฅ๐ฅ ๐ฟ๐ฒ๐๐ฎ๐ถ๐ป ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐ฒ๐พ๐๐ฎ๐น๐น๐ ๐ฎ๐ฐ๐ฟ๐ผ๐๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐บ๐ผ๐ฑ๐ฒ๐น๐. VC-backed startups have seen a decline in customer retention rates, highlighting their challenges while trying to scale. 6๏ธโฃ ๐ฉ๐-๐ฏ๐ฎ๐ฐ๐ธ๐ฒ๐ฑ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ ๐๐ถ๐๐ต $๐ญ๐ -$๐ฏ๐ฌ๐ ๐๐ฅ๐ฅ ๐น๐ฒ๐ฎ๐ฑ ๐ถ๐ป ๐ป๐ฒ๐ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ถ๐ผ๐ป. With new business slowing, SaaS companies pivoted their strategies and relied more on expansion to drive growth. Dive into more insights ๐ https://lnkd.in/eKE-cvuv #SaaS #growth #VC #bootstrapped #startups #chartmogul
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SaaS founders have it pretty good these days. Now - that comes with a lot of caveats. Way harder to raise a round than it was a couple years back, expectations for traction and momentum are much higher, no doubt. But when it comes to ownership, SaaS founders keep more of their companies than founders in other major VC sectors. Just look at priced seed rounds from 2023: - SaaS founders sold a median of 20.3% to investors - Fintech founders sold a median of 20.4% to investors - Hardware sold 21.7% - Renewable Energy companies sold 25% - Biotech companies sold 25.5% Big gap there for the more software-focused startups vs the harder tech venture-backed companies. And the distance between industries only gets larger as you move up the venture ladder. Median Series A dilution - in SaaS, it's 20%. in Biotech, it's 28.2% Median Series B dilution - in SaaS, 15.9%. Biotech 24.5% Of course dilution doesn't only happen in primary rounds. There's a whole collection of bridges, extensions, convertible financings that eat into the founder ownership share as well. But when it comes to the standard, clean venture round - SaaS founders have it pretty good. Silver linings I guess! Sorry Biotech folks. Join our Data Minute newsletter (link in graphic) for the best insights from 43,000+ cap tables ๐ #cartadata #dilution #startups #founders #SaaS
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SaaS founders have it pretty good these days. #startup #fundraising #angelinvestor #investments #VentureCapital #vc #Entrepreneurship #venturefunding #investing #TechNews #Innovation #technology #saas https://lnkd.in/d9xBVQzN
SaaS founders have it pretty good these days. Now - that comes with a lot of caveats. Way harder to raise a round than it was a couple years back, expectations for traction and momentum are much higher, no doubt. But when it comes to ownership, SaaS founders keep more of their companies than founders in other major VC sectors. Just look at priced seed rounds from 2023: - SaaS founders sold a median of 20.3% to investors - Fintech founders sold a median of 20.4% to investors - Hardware sold 21.7% - Renewable Energy companies sold 25% - Biotech companies sold 25.5% Big gap there for the more software-focused startups vs the harder tech venture-backed companies. And the distance between industries only gets larger as you move up the venture ladder. Median Series A dilution - in SaaS, it's 20%. in Biotech, it's 28.2% Median Series B dilution - in SaaS, 15.9%. Biotech 24.5% Of course dilution doesn't only happen in primary rounds. There's a whole collection of bridges, extensions, convertible financings that eat into the founder ownership share as well. But when it comes to the standard, clean venture round - SaaS founders have it pretty good. Silver linings I guess! Sorry Biotech folks. Join our Data Minute newsletter (link in graphic) for the best insights from 43,000+ cap tables ๐ #cartadata #dilution #startups #founders #SaaS
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The "Year of Efficiency" is almost at an end. Looking at our Q3 data, here's how companies scored: โ Startups have cut their burn rate nearly in half. โ Operating margins have drastically improved, a trend we expect to see continue into 2024, with the top decile companies aiming to achieve cashflow breakeven next year. โ Capital efficiency stayed flat as growth fell, partly due to market conditions and partly due to lower direct investments in company growth. What we think: Tech companies are in a much stronger position from an operating margin perspective than they have ever been before. As growth slowly returns in 2024, weโll hopefully see the year of operational efficiency give way to the year of capital efficiency. Read more from Eduard Danalache.
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Senior Manager of Insights @ ChartMogul | ex-Dow Jones
4wGreat having you as partners! Two great datasets combined is the dream of any researcher ๐ซ