How to scale: the T2D3 path

[Aram]

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

https://www.battery.com/powered/helping-entrepreneurs-triple-triple-double-double-double-to-a-billion-dollar-company/

Discussion

[Tadhg]

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?

[Aram]

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/