Mamoon Hamid believes the most important number in Software-as-a-Service is 4.
That number is the ideal SaaS Quick Ratio — a metric Hamid came up with as the General Partner at Social + Capital, an early-stage Venture Capital firm. He explained that while constantly evaluating new Software-as-a-Service startups for investments, he was looking for a fast and easy metric to track potential for growth over time.
In the latest episode of Ramp, Hamid explains exactly how he came up with the Quick Ratio, which measures not only growth in Monthly Recurring Revenue, but also incorporates upsells and churn rates.
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The Quick Ratio is clearly working in his favor. Hamid has invested in some of the most disruptive companies in the market today, including Box, Yammer and Slack.
In this exclusive 33 minute interview, Hamid reveals his thought process for every startup investment, including:
- Why the SaaS tech bubble is a myth
- Why he doesn’t care about Customer Acquisition Costs
- How he met Aaron Levie, the CEO of Box, and identified his potential to succeed
- The other vital sales and marketing metrics he looks at before investing
- …and much more.
Get measurable advice on startup success from Hamid in the newest episode of the Ramp podcast.