There are many ways to build a successful SaaS business, and Tomasz Tunguz has analyzed most of them.
Tunguz is a Partner at Redpoint Ventures and writes an incredibly successful data-focused blog, www.tomtunguz.com — a must-read for anyone in SaaS startups. He is best known for in-depth S-1 posts, which delve into the specific sales, marketing, and finance metrics for the most successful SaaS companies that IPO.
Tunguz explained that he believes it’s important to benchmark this data for startups, so others can learn from how one company succeeded.
“All exceptional businesses are going to look a little different,” he explained. “But it’s useful to see how other people built a business through a numbers lense. The data serves as interesting benchmarks. They show what’s possible — and what can be beaten.”
In the latest episode of Ramp, Tunguz explains how SaaS startups can use this data to inform their own businesses, and scale more quickly.
At RedPoint, Tunguz focuses specifically on Series A investments, and so he must identify early signs of success based off very little historical data. He shared some of the specific metrics that guide his investments, and what these numbers indicate.
“You really want to see high sales quota attainment,” he explained. “It shows there’s great product-market fit and terrific inbound lead velocity rate — the company is being pulled into the market. That’s a really strong leading indicator for success.”
In this exclusive 20 minute interview, Tunguz shares:
- The most overrated metrics for early SaaS startups
- The industries with the fastest growth in SaaS
- The reasons behind increasing valuations of startups
- …and much more.
Get insights from one of the top Venture Capitalists in SaaS today, in the newest episode of Ramp, the InsightSquared podcast.