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PlatformOS

DeckSend

Unit Economics

2021 Financial & Operating Benchmarks Report - OpenView

This report was designed specifically to enable operators to compare themselves against their direct peers across the metrics that matter most in a SaaS business.

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Marcelino Pantoja founder-in-residence
over 2 years ago

Founder-in-Residence @ Platform Venture Studio

It's not just whether you can grow but rather how effectively and efficiently you can do so.

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"We track six value drivers for software companies. Depending on your specific context, below is what it takes to be 'best in class' on all of investors favorite metrics by each fundraising stage.

And so while growth is all that matters, this is in part because top quartile metrics are not just hype. A profitable economic model with a reasonable CAC and >100% net dollar retention (NDR) is now a baseline of what is required to command the best valuations. Of the companies that went public in 2020 and 2021YTD, nearly all have >100% NDR. Many of them also tout impressive sales & marketing efficiency metrics.

Best-in-class value drivers are the current expectation for all companies. While it might not seem like it right now, everything is valued on cash flows, eventually. Whatever metric or set of metrics you prioritize: LTV, CAC, Payback, Retention, Growth—all of these give hints at what long term cash flow margins might be for your business in aggregate or on a customer basis. The more predictable and larger those future cash, the better."

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This is a good benchmark to review before you go fundraising:

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