The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 759: 5 Metrics that Matter When Raising Your SaaS Series A and Series B Round with Christoph Janz, Partner at Point Nine Capital

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Sep 25, 2024
Christoph Janz, a Partner at Point Nine Capital and a SaaS investment expert, shares crucial insights for founders seeking Series A and B funding. He highlights five metrics that can make or break an investor's decision. Janz emphasizes the importance of clear, self-explanatory data to avoid lengthy discussions. This clarity not only boosts confidence among investors but also allows founders to engage with more potential backers simultaneously. It's all about showing growth, efficiency, and retention while having robust financial models in place.
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ADVICE

Create Clear KPI Financial Model

  • Prepare a KPI sheet with actual, historic, and projected data for at least two years.
  • Keep your financial model simple, logical, and focused on key SaaS metrics like ARR and churn.
INSIGHT

Growth and Efficiency Balance

  • Investors want a strong balance of growth and efficiency in SaaS startups.
  • Growth remains crucial, but efficiency metrics like burn multiple and Rule of 40 are more valued today.
ADVICE

Use Cohort Analysis for Retention

  • Perform cohort analyses regularly for both customers and revenue to measure retention and churn.
  • Segment cohorts by plan type or customer segment to uncover specific retention trends.
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