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How to scale: the T2D3 path
In this article that has become a must-read for SaaS enterprise-software startup founders, Battery Ventures VC Neeraj Agrawal explains in a short but insightful manner how successful startups in this field have made it to unicorn status.
Remember that only a very small number of companies manage to reach such growth.
There are at least two takeaways here in our view:
1/ The key to success lies in human resources (and processes)
2/ You need a model that truly scales to reach such impressive growth rates
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2 Replies
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Interesting read – would a SaaS-focused VC be overly concerned how CAC evolves as the company achieves scale? Or would they be satisfied seeing rapid and consistent ARR growth?
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Thanks for the thoughtful question Tadhg. SaaS investing is sometimes called “spreadsheet investing” because you need a couple of data points and you almost know if you’re going to invest, and at what valuation. They are LTV, CAC, monthly MRR growth, Churn and a few others depending on the business model. You can refer to SaaSTr for more on this: https://www.saastr.com/
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