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Revenue Doesn’t Matter

27 pointsby bretthardinover 12 years ago

5 comments

smalterover 12 years ago
The less sensational title: Revenue alone doesn't matter, you have to consider it in context.<p>If the question is purely, "What is a ballpark MRR for a Series A SaaS company?", this is a helpful thread: <a href="http://www.quora.com/Software-as-a-Service-SaaS/What-are-average-revenues-MRR-or-ARR-for-SaaS-companies-at-the-time-of-the-Series-A" rel="nofollow">http://www.quora.com/Software-as-a-Service-SaaS/What-are-ave...</a>
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cascaover 12 years ago
TL;DR: Some guy on Twitter says "VCs will fund any company with a Series A if they are making $2,750 a day". The author disagrees and says that there are 3 things that are important: market, growth rate and margin.
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yurylifshitsover 12 years ago
In my view, for Round A you need revenue and the following three:<p><pre><code> 100M$+ market volume Margins Distribution strategy </code></pre> Distribution strategy is better property to focus on than growth rate. All these week-over-week or month-over-month numbers can be gamed. And keep in mind "Crossing the Chasm" challenge. Your growth rate among early adopters has nothing to do with your ability to win the mainstream market.
jspaurover 12 years ago
Suggested Title: Revenue alone won't get you VC
JacksonGarietyover 12 years ago
Title is misleading. @Smalter's suggestion is far more accurate.