Importance of Burn Multiple as a KPI for Growth Companies | 38sec snip from This Week in Startups

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David Sacks and Ethan Ruby on launching SaaSGrid | E1803

This Week in Startups

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Importance of Burn Multiple as a KPI for Growth Companies

Predictable spending on marketing and commissions is crucial for growth companies in 2023. Maintaining a healthy ARR growth rate while keeping the burn multiple below one is becoming the gold standard for businesses aiming to IPO in the future.

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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!

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

Check out SaaSGrid: https://www.saasgrid.com/

FOLLOW Ethan: https://twitter.com/ethanjruby