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Understanding the Burn Multiple
This chapter discusses the concept of burn multiple and its importance in evaluating startup efficiency, highlighting the ideal range and why it is a more accurate metric than customer acquisition costs.
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Today’s show:
SaaSGrid Co-Founders Ethan Ruby and David Sacks join Jason to demo SaaSGrid and break down the solution it provides for founders (3:12). They also cover the software recession (26;18), AI’s impact on SaaS (36:41), and much more!
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Time stamps:
(0:00) David Sacks and Ethan Ruby join Jason
(3:12) The solution SaaSGrid provides for founders
(7:02) Ethan demos SaaSGrid
(9:25) House of Macadamias - Get 20% off and a free box of Namibian Sea Salted Macadamia Nuts at https://houseofmacadamias.com/twist by using code TWIST20
(10:45) Burn multiple and startup efficiency
(16:27) Fixed cost of a SaaS business today and major roadblocks in SaaS
(20:40) Determining target customers and when outbound makes sense
(25:10) Vanta - Get $1000 off your SOC 2 at https://vanta.com/twist
(26:18) Headwinds against SaaS and the software recession
(30:12) The MRR chart and analyzing contraction and churn
(35:13) Fitbod - Get 25% off at https://fitbod.me/twist
(36:41) AI’s impact on SaaS companies
(41:47) The ZIRP/COVID-19 bubble and founders skipping funding rounds
(44:37) The 3 MOST important things for SaaS companies to pay attention to
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Check out SaaSGrid: https://www.saasgrid.com/
FOLLOW Ethan: https://twitter.com/ethanjruby
FOLLOW David: https://twitter.com/DavidSacks
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Read LAUNCH Fund 4 Deal Memo: https://www.launch.co/four
Apply for Funding: https://www.launch.co/apply
Buy ANGEL: https://www.angelthebook.com
Great recent interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland, PrayingForExits, Jenny Lefcourt
Check out Jason’s suite of newsletters: https://substack.com/@calacanis
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Follow Jason:
Twitter: https://twitter.com/jason
Instagram: https://www.instagram.com/jason
LinkedIn: https://www.linkedin.com/in/jasoncalacanis
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Follow TWiST:
Substack: https://twistartups.substack.com
Twitter: https://twitter.com/TWiStartups
YouTube: https://www.youtube.com/thisweekin
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Subscribe to the Founder University Podcast: https://www.founder.university/podcast
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