If you want to break even, go APE.
Cloud companies generally rely on efficiency metrics like CAC payback and LTV-to-CAC, but “they feel more like financial metrics than operational ones, and it is difficult for employees to execute against these concepts,” according to Neeraj Agrawal, Brandon Gleklen and Jack Mattei of Battery Ventures.
Using data from Capital IQ and Battery’s research, this post contains key benchmarks for public companies and privately held SaaS businesses, along with recommended targets for companies with different ARR ranges.
“APE is an extremely simple metric we think could serve as your north star as you navigate these volatile times.”
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This metric is not a panacea: APE varies by geographic region and other benchmarks, such as gross margin or a company’s forecasted growth rate.
“Getting to a higher APE earlier in the maturity cycle is likely a net positive,” they write. “Overall, we believe a goal of getting to $200,000 would serve most mid-stage/late-stage growth companies well.”
Take note, this is not a one metric to rule them all piece of thought leadership.
As Gleklen quipped on Twitter, “thou shalt only write about a metric in a blog post if you’ve discussed it with multiple management teams and you get consistent feedback that it is valuable.”
Thanks very much for reading,
Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist
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Teams are predisposed to hire candidates who’ve made it through multiple interview rounds, but checking references shouldn’t be a pro forma exercise.
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Squadhelp CEO and founder Darpan Munjal shut down his previous company, a fashion e-commerce venture, after four years of “solid growth.” In hindsight, he says early-stage funding created a false sense of security.
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It’s not easy to retain people in private capital: new associates must wait years before they can earn carried interest, and a notoriously opaque compensation system does not foster loyalty.
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Image Credits: Simba Chain (opens in a new window)
Although TechCrunch did not cover blockchain startup Simba Chain’s $25 million Series A, the company still shared its winning presentation with TC+.
“My disdain for blockchain tech will almost certainly show through in this teardown,” writes Haje Jan Kamps, who says the 19-slide deck “is incredibly impressive and covers a lot of ground.”
In a down market, good messaging isn’t enough for managing international teams
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Talent is distributed around the globe, which means startups that don’t respect cultural differences are setting themselves up for failure.
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Dear Sophie: What should we know about the H-1B lottery before we hire STEM OPTs?
Image Credits: Bryce Durbin/TechCrunch
Dear Sophie,
What do I and my founding team at our early-stage startup need to be aware of so we can be on track for the next H-1B lottery for the STEM OPT candidates we’re hiring?
— Strong Strategizer