The Metrics that Matter for Growth Stage Startups in 2020

Jan 30 15:01 2020 Print This Article

Early lessons on SaaS metrics

Early in my career in growth equity, I was (willingly) pulled into the rabbit hole of SaaS metrics.

As strange as it might sound, the change of pace was actually refreshing to me, as SaaS metrics felt relatively straightforward at the time. No complex DCF or LBO models and only a handful of inputs to worry about? As a former investment banker, I considered this a win.

I was also excited when it dawned on me that SaaS metrics don’t change much… as in almost never. David Skok published his widely-read SaaS Metrics 2.0 framework over a decade ago in 2008. That article remains highly relevant to this day.

As I developed a deeper understanding of SaaS metrics, I read many blogs and frameworks on the web. If you’ve done any Googling in this realm, you’ve probably reached the same conclusion I did: everything that could possibly be said already has been. So, once I had found my favorite articles and formed my perspective, I stopped pushing myself to learn more on the subject. In other words, I thought I had it covered.

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Georgian Partners Blog

Georgian Partners is a thesis-driven growth equity firm investing in business software, Internet and information companies. Founded by successful entrepreneurs and technology executives, Georgian Partners leverages our global software expertise to be able to directly impact the success of companies. Georgian Partners invests in growth-stage enterprise software companies earning $500,000 or more in monthly recurring revenues, or $6 million or more on an annualized basis.

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