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The VC Factory – Platform Forums Entrepreneurship Forum How to scale: the T2D3 path

  • Creator
  • #10384


    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

  • How to scale: the T2D3 path

    Aram updated 1 year, 3 months ago 2 Members · 2 Replies
  • Tadhg

    February 3, 2021 at 7:11 pm

    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

      February 4, 2021 at 3:00 pm

      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:

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