VC Cafe

JUNE 6, 2024

This post explores the most important benchmarks VCs look for in B2B SaaS with data brought to you by 20VC/La Famiglia, Serena Capital, Emergence Capital, and Openview Ventures, providing definitions and insights into the most critical metrics for SaaS companies.

B2B 97

B2B Burn Rate Generative AI Retention 97

ConversionXL

OCTOBER 22, 2018

Talk to any B2B marketer about attribution and they’ll either roll their eyes or rant about how it’s important but hard to get right—long lead cycles, multiple contacts from a single organization, etc. If we look at the hierarchy of marketing data, it goes something like this: Acquisition (e.g. What is attribution?

B2B 131

B2B Marketing Analytics Campaign 131

VC Cafe

FEBRUARY 21, 2023

Whether you are a B2B SaaS company or a B2C mobile app, knowing how your business stacks up against industry averages can help you make informed decisions and drive growth. For example, in B2B SaaS conversion, OpenView Partners 2022 benchmark report found that the average conversion rate for B2B SaaS businesses was 7.3%

Retention 109

Retention Conversion Churn Rate B2C 109

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Investment Criteria: B2B SaaS or tech-enabled services with proven, recurring contracts.

Revenue 60

Revenue Technical Review Software Review Equity 60

View from Seed

AUGUST 30, 2016

Acquisitions are happening more and more, while companies like PillPack, Actifio, CarGurus, OnShape, Acquia, Applause, and others continue to march forward. These companies are all over the map: B2B, B2C, SaaS, ecommerce, healthcare, SMB-focused, enterprise-focused, etc. Their target consists of SMBs specifically.

Social Media 185

Social Media B2B North America Media 185

VC Cafe

OCTOBER 23, 2022

The CEO shared the revenue target for the year at X, and the revenue target for next year at 3X. One of the board members asked a simple question: “Why is revenue our North Star KPI? One of the board members asked a simple question: “Why is revenue our North Star KPI?”

Metrics 180

Metrics Revenue B2C Portfolio 180

ConversionXL

NOVEMBER 23, 2022

Salesforce, for example, increased its revenue market share to 18.4% B2B buyers aren’t all-rational, and they will often follow and recommend tools they’ve heard of even if they’ve never used them. Product should be your main channel for customer acquisition, retention and expansion. Daniel Layfield.

B2B 94

B2B Marketing Curation PPC 94

ConversionXL

NOVEMBER 22, 2022

Click-Through Rate Definition The Conversion Rate Formula: How to Calculate Conversion Rate Bounce Rate: Everything You Want to Know and More How To Calculate and Increase Customer Lifetime Value PPC Click-Through-Rate: What it Means and How to Use It (and Improve It) How to Track and Improve Ecommerce Customer Acquisition Effectiveness.

Metrics 105

Metrics Analytics Marketing Acquisition 105

The Startup Magazine

JULY 16, 2021

B2B events are unique in the opportunities they provide for companies in many different departments. Incorporating virtual B2B events into your business strategy can offer multifold benefits. The organization of physical B2B events can be a demanding task. Cut Down on Costs. Cultivate Your Database. Showcase Your Expertise.

B2B 158

B2B Database Hosting Acquisition 158

ConversionXL

FEBRUARY 3, 2022

Acquisition. For each potential channel, look at: Customer acquisition cost How many customers you can reach Whether the channel reaches the right audience. In the acquisition phase, measure these performance metrics: Customer acquisition cost Conversion rate Website traffic Click-through rate Bounce rate Quality of leads.

Retention 113

Retention Marketing Acquisition Channel 113

ConversionXL

JUNE 16, 2022

This will improve customer lifetime value (CLTV), making customer acquisition costs (CAC) healthier. Research from Optimove shows that young, fast companies derive 30% of revenues from existing customers. As those companies become more established, that increases to around 90% of revenues. Focus on value. Keep it consistent.

B2B 129

B2B Email Sales Acquisition 129

ConversionXL

JUNE 8, 2017

Acquisition segments. Acquisition segments. If you are in B2B, you’ve certainly heard of account-based marketing by now. It is about focusing your marketing efforts on a few select companies that could represent huge revenue streams. Contextual segments. Behavioral segments. Historical segments. Algorithmic segments.

Programming 97

Programming Revenue Analytics Software Review 97

View from Seed

OCTOBER 11, 2022

This includes exits from the acquisitions and public offerings of companies like TripleLift, Skillz, Drift, ThredUp, Parsec and others, which allowed us to return multiples of several different funds. Of all the billion-dollar companies we have backed, 2/3 of our initial investments were pre-revenue, and many pre-product.

Cofounder 156

Cofounder San Francisco Portfolio Limited Partner 156

Austin Startup

AUGUST 9, 2021

Chargify, the leading billing platform for B2B SaaS, today announced the appointment of Matt Downs as Chief Revenue Officer (CRO) effective immediately. He will play a pivotal role as Chargify and SaaSOptics are brought together as the industry leading SaaS subscription billing and revenue platform.

Revenue 72

Revenue Georgia Texas Colorado 72

Occam's Razor

MAY 2, 2017

#tearsofpain One way of removing silos and focusing on the entire business is to leverage Acquisition, Behavior and Outcome metrics. A small change I’ll make in this post is that when I recommend the metrics, I’ll follow the Outcomes | Behavior | Acquisition structure throughout this post. B2B / Enterprise Sales: Salesforce.

Metrics 143

Metrics Acquisition eCommerce Analytics 143

Mucker Lab

APRIL 6, 2023

You engage the marketing team and you do a lot of acquisition and people are coming. If you work in B2C or e-commerce, you optimize that Add to Cart flow like crazy because that is your revenue. Before you scale the acquisition like crazy, really figure out how to activate new users, how to convert them.

Product 78

Product CTO Hire Startup Fractional CTO 78

ConversionXL

JULY 21, 2022

Its study of B2B buyers shows an even split in how decision-makers interact with sales reps traditionally, remotely, and self-served digitally: Of the B2B leaders that use omnichannel marketing, 83% say it’s a more successful way to prospect and secure new business than traditional “face-to-face only” selling.

Customer 118

Customer Marketing Channel Audience 118

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. How can you shift focus to customer retention versus acquisition?

South Korea 334

South Korea Salary Business Model China 334

YoungUpstarts

APRIL 26, 2017

We spoke to Gogoprint about customer acquisition processes, and in particular the importance of sales teams for B2B-oriented e-commerce. Each individual market differs in many ways, bringing up the challenge of determining appropriate ways to spur sales and find new customers in order to create revenue.

B2B 179

B2B Sales Thailand Malaysia 179

ConversionXL

MAY 27, 2022

B2B demand generation focuses on ROI. Look instead at measuring KPIs like close rate, cost per acquisition, cost per lead, conversion rates, average contract value, and lifetime customer value. Inside sales CRM Close.io , for example, grew its company to $6+ million in annual revenue with thought leadership-fueled content marketing.

Demand 115

Demand Affiliate Audience Leadership 115

ConversionXL

MARCH 6, 2019

LinkedIn ads offer the benefits of video content and the granular targeting of a B2B-centric platform. The growth of B2B video marketing. But LinkedIn owns the lucrative B2B audience. As AJ Wilcox notes in his course on LinkedIn ads , 72% of the Fortune 1000 are B2B companies. digital ad spend went to video.

Video 129

Video B2B Technical Review Campaign 129

ConversionXL

OCTOBER 1, 2022

95% of B2B buyers are not ready to buy your product right now. When B2B buyers are considering a purchase, they spend only 17% of their time meeting with potential suppliers. According to Walker: “B2B buyers are discovering, researching, and evaluating products in places companies can’t track.”. via Revenue Champions].

B2B 103

B2B Social Media Channel Audience 103

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. Individuals don’t make B2B buying decisions; groups do. Coordinated.

Customer 98

Customer Marketing Channel Acquisition 98

ConversionXL

NOVEMBER 5, 2020

Today, Grizzle is a full-service content marketing and SEO agency that provides B2B and SaaS companies end-to-end services. Most B2B buyers know this. For ambitious agencies, taking an MVP approach can unlock incredibly lucrative revenue streams. About 18 months later, we pivoted our messaging to evolve beyond digital PR.

PR 120

PR B2B Lean Audience 120

VC Cafe

AUGUST 3, 2023

While Israeli startups successes are well known in the B2B space (cybersecurity, enterprise tech, devops…), B2C startups are unsung heroes… The landscape of B2C tech in Israel is blossoming, despite several challenges. Crossed the $200M in revenue and reached over 400 million unique users.

Israel 148

Israel B2C Generative AI Artificial Inteligence 148

ConversionXL

APRIL 7, 2021

If you’re selling B2B, you know it’s a wide and competitive market. Sorry, but ABM is not B2B, nor is it right for all markets, business models, or companies (just like every company should not be running freemium aka PLG for acquisition.) They won’t magically show up at your doorstep and sign a $100K cheque.

IP 98

IP Marketing Technical Review Software Review 98

ConversionXL

SEPTEMBER 20, 2021

billion in ad revenue in 2020. But you can also accumulate significant exposure and revenue through an organic YouTube strategy. Given that most users abandon apps within 30 days post-installation, high downloads don’t lead to high audience retention, satisfaction, or revenue. Revenue metrics. YouTube generated $19.77

Analytics 134

Analytics Metrics Channel Video 134

ConversionXL

NOVEMBER 29, 2018

Freemium and free-trial signups have one thing in common: Neither generates revenue. Lincoln Murphy cites a 3% conversion rate for SaaS and B2B web apps; a 2012 article on several leading platforms suggested a range between 1 and 10%. Nonetheless, sharpening targeting for user acquisition or offering a trial only to some users (e.g.

Customer 119

Customer Conversion Acquisition B2B 119

View from Seed

SEPTEMBER 11, 2019

At NextView we invest across the spectrum of seed stage companies so roughly 1/3rd of the companies we invest in are pre-product, roughly 1/3rd are post-product but pre-revenue, and perhaps 1/3rd have some very early revenue. You’re obviously not showing charts of user growth, number of customers, or revenue.

Seed Stage 149

Seed Stage B2B Seed Capital Revenue 149

ConversionXL

AUGUST 18, 2020

In this article, I walk you through a framework—the SEO pyramid—and how to think about keyword research for B2B SaaS businesses. The SEO Pyramid categorizes search term types for B2B SaaS businesses. For many B2B SaaS companies, problem terms are the biggest opportunity. What is the SEO pyramid? brand terms, solution terms, etc.)

Framework 123

Framework B2B SEO Search 123

Up and Running

JULY 15, 2015

50% of B2B companies find it difficult to attribute marketing activity directly to revenue results. Some people prefer to track Gross Revenue, instead of (or along with) the lifetime value of the client. Others track Net Revenue (less Cost of Goods sold) or work off Net Income (less expenses). Do you feel the same way?

Marketing 60

Marketing Social Media Campaign Acquisition 60

ConversionXL

OCTOBER 25, 2018

It starts with having the right data in the system,” noted Kamil Rextin, who wrote about B2B attribution. Bogdanovich, who’s worked with dozens of companies on Salesforce integration and marketing automation, sketched an order of operations for data acquisition and deployment in demand gen campaigns: Bring clean data into the CRM.

Demand 132

Demand Vertical Campaign Channel 132

ConversionXL

APRIL 3, 2018

mobile is ~50% of revenue, shorter form works better. Flip your funnel – only 5% of revenue comes from optimisation but 92% of revenue from retention. Optimize for retention, not just acquisition. To understand acquisition you must understand lifetime value. What makes B2B different? updated footer.

Retention 106

Retention Artificial Inteligence Channel Email 106

Hearpreneur

JANUARY 19, 2018

It could be more revenue, hiring clients or launching a new product or service, but every new year is an exciting time because it’s ripe with opportunity. 3- Triple our revenue and grow our base. We have two key goals for 2018: To grow our user base to more than 1 million and triple our revenue. 1- Efficiency. #2- 2- Two goals.

Detroit 97

Detroit Entrepreneur Technical Review Revenue 97

ConversionXL

JANUARY 18, 2022

It partners with sales to close more revenue, informs product teams to deliver better products, and in some cases, co-owns demand generation activities with marketing teams. Founder Nathan Barry launched in 2013 to help creators sell their books and courses but failed to meet revenue goals and eventually stalled.

Marketing 110

Marketing Product Audience Equity 110

View from Seed

SEPTEMBER 4, 2018

In two cases, these businesses were doing significant early revenue ($500K/month+), so could be considered “post-seed”, although both of these companies had not raised significant institutional capital before we led their rounds. Of the last 15 investments we’ve made, 8 have been pre-product or pre-seed style rounds.

North America 120

North America Seed Stage Early Stage Lead Investor 120