Felix Li’s Post

Every time I get into a conversation with a Founder, I always get asked the same question: What does a VC looks at when screening a Pitch Deck? Well, why not getting these insights directly from a VC? My friend and colleague Felix Li penned down in this article the key metrics to evaluate any business absolute fundamentals. What I found particularly insightful is the cohesion of detail and simplicity that's brought to the table. It's not just about the numbers, it's about telling a compelling story that resonates with investors. #venturecapital #startup #pitchdeck

Did you know that countless individuals and businesses have achieved incredible success through SaaS? From bootstrapped startups to established corporations, SaaS has provided a pathway to innovation, growth, and financial freedom . Why is SaaS so powerful? Scalability: Easily reach a global audience without the overhead of physical infrastructure. Recurring revenue: Generate steady income streams through subscription models. Innovation: Continuously improve and adapt to changing market needs.

🚀 Exciting Announcement for ScaleUp Leaders & SaaS Founders! 🚀 Navigating the SaaS growth landscape can be daunting with the countless critical decisions that can make or break your business. That's why we're thrilled to introduce the Insight Partners 𝘚𝘢𝘢𝘚 𝘎𝘳𝘰𝘸𝘵𝘩 𝘈𝘤𝘤𝘦𝘭𝘦𝘳𝘢𝘵𝘪𝘰𝘯 𝘍𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬 - a game-changing resource tailored for software ScaleUp leaders! Leveraging nearly three decades of expertise in scaling SaaS startups, this interactive blueprint is designed to guide you through the intricate maze of business decisions affecting your GTM strategy and overall company growth. 🔍 Why is this a must-try? -It simplifies complex decision-making. -Provides strategic insights tailored to your unique challenges. -Accelerates your path to the right decisions, saving you time and resources. Insight knows how to scale companies and this framework is your cheat sheet! 👉 Check it out now: https://lnkd.in/exXMg3zp Let's scale smarter, not harder. #SaaS #GrowthStrategy #ScaleUp #TechLeaders

Every business needs cash — not only to keep the lights on, but to make strategic investments for growth. However, a SaaS startup that grows too quickly risks burning all of its cash. Read on to learn more on finding that perfect balance, as well as: • What cash flow is and what it isn’t • Types of cash flows • How to prepare a cash flow statement • Cash flow analysis. ⬇ ⬇ ⬇ https://lnkd.in/gfGVUt7T

𝗪𝗲𝗹𝗰𝗼𝗺𝗲 𝗯𝗮𝗰𝗸 𝘁𝗼 𝗼𝘂𝗿 𝗤&𝗔 𝗧𝗵𝘂𝗿𝘀𝗱𝗮𝘆 𝘀𝗲𝗿𝗶𝗲𝘀 - 𝗪𝗲𝗲𝗸 𝟭𝟭! 🚀 This week, Peter Grouev, our CIO and co-founder, answers a SaaS founder's question: "Our SaaS company is growing fast, but we’re struggling to balance profitability and growth. The Rule of 40 isn’t fully capturing the complexity of our business. How can we find the balance?" 𝗣𝗲𝘁𝗲𝗿'𝘀 𝗔𝗻𝘀𝘄𝗲𝗿 💡 : The Rule of 40 is useful but may not suit fast-growing companies. The Rule of X, from Bessemer Venture Partners, customizes the balance of growth and profitability, using a multiplier based on your stage and sector to fit your needs better. For example, if your growth rate is 30% and profitability is low, applying a 2x multiplier would make the formula: (30% growth * 2) + FCF margin. This gives a clearer picture of where to focus, helping balance growth and long-term profitability. Subscribe to Tapline's newsletter for more SaaS tips and insights ➡ https://lnkd.in/eNiZkQJi #SaaSGrowth #RuleOf40 #RuleOfX #SaaSFinance #SaaSFounders

Most SaaS advice chases unicorns. But what if *real success* meant aiming smaller, smarter, and ultimately…winning bigger? Forget the VC grind. Here’s why bootstrapping a profitable SaaS is the path more founders should take: - Profit First: Niche markets, faster wins - Deep Learning: Marketing, team-building, and beyond - Sustainability: Long-term growth while being careful with cash It’s time for first-time founders to think survival, and avoid hype. Start small. Learn big. And build your own path.

The Metrics SaaS Investors Care About Most: Understanding the right metrics can make or break your SaaS startup when seeking investment. Investors focus on different metrics depending on the growth stage of your company, but some remain critical throughout. Top Metrics to Focus On: 1) Customer Acquisition Cost (CAC) Payback 2) Period 3) Monthly Recurring Revenue (MRR) 4) Growth Rate 5) Net Revenue Retention Rate 6) Gross Margin 7) Lifetime Value (LTV) to CAC Ratio PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

Kennet Partners' strategy of investing in bootstrapped SaaS companies is a unique approach. This method aligns with my view that profitability should come before external capital. Great to see this focus on selfreliance while still facilitating growth. #StartupFunding #TechInvestment #ProfitFirst

Why I'm Doing a Series on SaaS Businesses I’m starting a series on SaaS businesses because I’ve noticed a trend: everyone with even a small element of SaaS in their business thinks it’s worth a fortune. And why wouldn’t they? We’ve all heard stories of SaaS companies selling for multiples that make your head spin. The allure of predictable recurring revenue and high scalability is driving valuations through the roof. But here’s the thing: not all SaaS businesses are created equal. While the subscription model and high gross margins are certainly attractive, the reality is that the market places immense value on specific growth metrics, customer retention, scalability, and overall profitability. Just having a SaaS component doesn’t automatically mean your business will achieve those eye-watering multiples. It takes more than recurring revenue to make your business worth “squillions.” In my following three posts, I’ll be diving into what makes a SaaS business valuable. We’ll cover topics like key metrics investors look for, how to demonstrate real growth potential, and the pitfalls to avoid if you want to maximize your valuation. My goal is to help SaaS founders and anyone with SaaS elements in their business understand what drives value, beyond the hype. Whether you’re preparing for a sale or just curious about what makes SaaS models so enticing, stay tuned. Together, we’ll unpack the myths and realities of SaaS valuations. Please let me have your thoughts by leaving a post or DM me if you want to discuss SaaS Valuations. #SaaSBusiness #BusinessValuation #RecurringRevenue #TechEntrepreneurship #GrowthMetrics #SellingABusiness #SaaSValuations #StartupSuccess #BusinessBroker #MergersAndAcquisitions

Startup Founders: When should you consider moving upmarket into the enterprise segment? What does that even mean for your business? That's the subject I'll be tackling in a webinar hosted by SIERRA Ventures on April 23rd. Drawing upon 20 years of SaaS GTM experience with companies of various sizes, stages, and types, I will delve into the "What, Why, Who, When, and How of Moving into Enterprise." Join the conversation by signing up here: https://lnkd.in/g87pyMte