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If VC would've been a sport - it would've been Baseball

It's a pretty popular fact that greatest baseball players hit the ball every 1/3. The green line below show this as fairly consistent across the top-50 hitters historically (the 50th having 2839 hits, so it's quite reprentfull). While the greatest hitters do an average 15-20%

4 years ago

What does the Rule of 40 tell about a SaaS company?

The Rule of 40 emerged a few years back at a time when many SaaS companies started to go public. Unlike traditional public on-premise incumbents, SaaS companies do not repay instantly the customer acquisition costs (CAC) and require at least 6-12 months of payback period to recoup it. Capital markets

4 years ago

MRR (monthly recurring revenue): the ultimate guide for SaaS

After writing this post, I found out that it has gotten a bit out of proportion, so below is a short table of contents: Sections: * Intro * Metric vs Reporting (GAAP, IFRS) * Definition: what is MRR (monthly recurring revenue)? * Tracking MRR and why its important? * How to calculate MRR and its

4 years ago

  • IPO
  • 17 min read
Lyft IPO valuation: a US$20bn rideshare

Every IPO has a story, especially in the consumer technology sector. This one is a tale about bad and good, black and pink, uber vs lyft. Unlike many other markets, the ride-sharing market due to original huge fragmentation and regulation was significantly underlooked. Since 2010 when Uber and then Lyft,

5 years ago

Long live the Content - long live the King

At the foundation of any organization, there are a few elements that repeat over and over regardless of the industry. * Team or who does what? * Process or how they do it? * Content or What they do? * Vision or why do they do it? (other than to make a buck) With

6 years ago

Nail it then scale it: growth vs CLTV-CAC excel template

Despite all available resources (tons of open-source, cloud IaaS, testing tools etc) it is still much harder to build a SaaS than a marketplace. With marketplace to start getting first traction all you need is a few landing pages, an advertising budget for facebook / google, if there is a need

6 years ago