6 SaaS Metric Frameworks & Benchmarks To Know Before Fundraising - Deepstash

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6 SaaS Metric Frameworks & Benchmarks To Know Before Fundraising

medium.com

1- Revenue growth: the T2D3 framework

Some companies find their PM fit faster than others. The T2D3 framework shows what it takes to grow your revenue from $1M — $2M to around $100M Arr in 6–7 years. The vast majority of Saas startups will never reach this level of growth and that’s completely fine. If you talk to “traditional” Saas ...

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2- Revenue Growth efficiency: SaaS Quick Ratio

High Churn and lack of account expansion can kill even the fastest growing companies.

This is where the SaaS Quick Ratio comes in handy.

SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

 A Saas quick ratio superior to 4 will excite Vcs, between...

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3- The LTV / CAC ratio

Ltv stands for lifetime value and Cac stands for the customer acquisition cost. VCs expect that a customer generates at least 3 times what it cost you to acquire him (it’s a minimum).

This ratio mixes many aspects from sales and marketing efficiency to your ability to keep users (linked to ...

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4- Churn Benchmark

Churn is one of the most coveted and analyzed SaaS metrics on the internet so I won’t go into details here but just share this table by Tomasz Tunguz: 

You can probably be even more demanding for the Enterprise segment and expect a 0–0.5% monthly customer churn (and you generally measu...

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5- The 40% Rule

The 40% rule is that your growth rate + your profit should add up to 40%. So, if you are growing at 20%, you should be generating a profit of 20%. If you are growing at 40%, you should be generating a 0% profit. If you are growing at 50%, you can lose 10%. If you are doing better than the 40% rul...

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North Star

What's a Good or Bad North Star? 

• Bad: Mostly measuring price paid as opposed to value delivered • MRR, paid seats

 • Good: Measures value delivered in bulk • MAU, DAU, messages sent

 • Better: Unquestionably indicates Product-Market fit has been reached with th...

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