Explore the latest benchmarks revealing challenges for companies between $5M and $25M in revenue. Customer acquisition costs are rising, requiring longer payback periods. Many firms are now focusing on retention, with net dollar retention becoming critical for growth. Companies are tightening their belts, leading to a drop in burn multiples as efficiency gains importance. AI is reshaping search and operational strategies, prompting businesses to develop in-house tools instead of relying on traditional solutions.
11:51
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Rising CAC Payback Periods
CAC payback periods are increasing across the private markets, meaning it takes longer to recover customer acquisition costs.
AI disruption and companies building internal tools are major reasons behind this elongation in payback time.
volunteer_activism ADVICE
Avoid Unnecessary Internal Builds
Avoid building internal tools unless strategically necessary; buy established software like Salesforce or HubSpot instead.
Building complex tools such as HRAS internally is usually not a smart business move.
insights INSIGHT
Retention and Capital Efficiency Up
Revenue growth increasingly comes from existing customers, as net dollar retention drives expansion especially above $25M ARR.
Burn multiples are falling as capital efficiency improves, showing better discipline even in companies under $25M ARR.
Get the Snipd Podcast app to discover more snips from this episode
Today we’re reviewing the state of the private markets using the NEW benchmarks released by Mostly Metrics. We surveyed our readers to see how their company’s are doing… And it's tough to be a company between $5M and $25M in revenue right now.Three other things that stood out from the benchmarks this quarter:1️⃣ CAC Payback is up across the board. It’s taking longer to earn back customer acquisition costs. AI is disrupting traditional search channels, and companies are building internal tooling instead of buying when it makes sense.2️⃣ Revenue is coming from existing bases. Net Dollar Retention is doing the heavy lifting — especially beyond $25M ARR. Expansion efficiency is becoming the key growth lever.3️⃣ Burn multiples keep falling. In reaction to expensive growth, capital efficiency is trending up. Even companies under $25M ARR are showing discipline.Get the whole 33 page report here
This week’s podcast is brought to you by Campfire (www.campfire.ai)
We’ve all used legacy ERPs. Painful migrations, endless consulting fees, and even after you’re live, getting simple answers still means hours in spreadsheets.
Campfire fixes that. It’s the AI-first ERP built for modern finance and accounting teams. It's helping mid-market and enterprise teams close faster, unlock insights instantly, and scale smarter - without the additional headcount.I use Campfire myself, and it’s been a game changer for our finance workflow. The interface is intuitive, migration was quick & painless, and it's freed us up to focus on strategic work.They just raised $35 million from Accel to further reimagine ERP. That's not easy to do.
I’m excited to see how they keep reimagining this space – and you should be too.
Run the Numbers