Alfie Marsh

Reflecting on 2024 at redalpine: 💡 $500M Raised by Our Portfolio Our portfolio companies collectively raised more than $500M this year—no small feat in today’s market environment. This funding will help them scale faster, build better, and tackle some of the world’s toughest problems. 🇬🇧 Doubling down on the UK ecosystem This year, we opened a London office, bringing us closer to one of Europe’s most vibrant tech ecosystems. From fintech to deep tech, London remains a cornerstone for European innovation. 🌍 Building Bridges: In the U.S., Daniel Graf joined Redalpine as General Partner and is setting up an outpost in Silicon Valley. As the former Head of Product at Uber and Twitter, Daniel is one of the sharpest product minds in the world. His experience is already helping our portfolio companies navigate the challenges of U.S. expansion and global scaling. 🌱 New Investments, Bold Ideas We had the privilege of backing some remarkable founders this year, including (only announced): Proxima Fusion: Pioneering the next generation of clean fusion energy. Basecamp Research: revolutionizing genome design Albatross AI: next-gen ai-driven personalization ExpressionEdits: getting genetic syntax right Dunia: accelerating chemical industry decarbonization Biolux Technology: advanced light-accelerated orthodontics These companies represent what excites us most about venture capital: tackling complex problems with innovative solutions and extraordinary teams. 🏆 Celebrating Exits 2024 also saw two significant exits: ENVIRIA , Blackrock acquiring a major stake, advancing renewable energy infrastructure. natif.ai, acquired by DocuWare, continuing to lead in document intelligence. 💼 Raising Our 7th Fund Finally, we closed our 7th early-stage fund with $200M, enabling us to double down on software- and science-driven companies.

160

1 Comment

The Anatomy of a $10M SaaS Exit: How different Deal Structures determine how much you'll get and when 💸 Understanding the most common components of M&A transactions is crucial for maximizing your exit outcome and get a deal that matches your preferences. Let's break down 4 common ways to structure a $10M exit: 1. Cash Upfront: The simplest option. You get the full amount immediately, allowing for a clean break. 2. Cash + Earnout: A portion paid upfront, with the rest tied to future performance. This can potentially increase your total payout but comes with some risk. 3. Cash + Earnout + Seller Note: Adds a debt component where you become a creditor to your own company. This can offer tax benefits and flexibility in deal structuring. 4. Cash + Earnout + Seller Note + Equity Swap: The most complex structure. You retain some ownership in the acquiring company, potentially benefiting from future growth. Each structure has its pros and cons, affecting both the timing and total amount you'll receive. The right choice depends on your goals, risk tolerance, and belief in the company's future performance. A well-structured deal can make a significant difference in your exit outcome. Even if the deal size looks the same at first glance. #saas #startup #founders #investor #exit #mergersandacquisitions

122

39 Comments

Faster growth, the path to $100M ARR, the secrets shared on mega exits or founder secondaries. This is what goes down at SaaSociety, our invite only event for 50 B2B SaaS Founders over $5M in revenue up to $50M, that want to get to $100M or even exit before then. Each year we take this select group of founders, to a special location for 2 days, to connect with peers on the same journey and we invite 3 special Founders who’ve passed the $100M ARR mark and maybe had a mega exit or two on the way. It’s chatham house rules (whats said there stays there). Except, you’ll only get the insider knowledge and make the connections by getting out of the office and being there yourself. We’ll also throw in a bit of fun, like Whiskey tasting and clay pigeon shooting. Most that attend learn more in those two days than in one year of running their business. And look at this list of previous attendees who combined have exited for around $10B Co-founder of Pipedrive,  CEO of Segment,  CEO of Brandwatch,  CEO of RD Station,  Co-founder of WalkMe,  Co-founders of Userflow,  CEO of Peakon,  Co-founders of Hotjar,  CEO of Datafox,  CEO of Mention,  CEO of Profitwell Spaces are limited, so apply today should you want to connect with your scaling peers and get the knowledge from those that have done it. Link in the comments #scaling #saas #founders #retreat #saasociety

19

1 Comment

If you're valuing SaaS companies like traditional ones, think again. You're probably missing key metrics. Here are the essentials you should focus on: - ARR (Annual Recurring Revenue): The lifeblood of SaaS, showing predictable income. - Churn Rate: High churn can sink future revenues. - Customer Acquisition Cost (CAC): Knowing this helps balance spending and growth. - Lifetime Value (LTV): This tells you how much revenue a customer will bring over time. Traditional businesses don't operate on these dynamics. SaaS companies scale fast and pivot quickly. By ignoring these metrics, you risk undervaluing potential gems. So, update your valuation toolkit. Agree or disagree? #BrainDumps | BrainDump #107

188

31 Comments

Transition to greater efficiency in SaaS? Not so much when it comes to customer acquisition! 😏 This week, I took a closer look at Benchmarkit's latest 2024 report. Ray Rike + team once again analyzed data from almost 1,000 SaaS companies to deliver up-to-date KPI benchmarks. My focus for this week's article was on customer acquisition metrics. What should I say - it doesn't look too good. To my surprise, not necessarily due to higher costs for new logo acquisition. But because expanding existing customers became much more expensive. More details + charts in the full article: https://lnkd.in/eVytqK6h

26

9 Comments

Just had a fascinating convo with a PE operating partner (8+ figures in AuM). He surfaced the kinds of questions you should be asking if you’ve got enterprise B2B SaaS port-cos: "How can we optimize from pipeline to closed-won deals?" Focus on generating not just MQLs, but SQLs that sales can actually close. This means instituting cross-department collaboration on keyword strategy, ad copy, and lead qualification. → "Are our portfolio companies' Google ads truly effective?" Marketers often claim their paid Google spend is great, but it's because they're including Brand campaign success in their numbers. That's not driving incremental business. Look beyond brand keywords to assess true marketing effectiveness. → "What common pitfalls should we watch out for in keyword strategies?" I've seen companies waste money on irrelevant clicks. Their broad match keywords had 'IT software' ads showing up in 'HR software' searches. Problem is, you get low-quality leads that sales can't close. → "How can we improve the quality of leads we're generating?" Stop optimizing for "button-clickers". Instead, focus on "hand-raisers" – those who'll fill out a form after watching a demo. Your lead quality (and won deals) will thank you. → "For enterprise B2B SaaS, what should we prioritize in marketing?" It's not about lead volume. It's about generating the right leads that convert to revenue, even if those leads are more expensive. This means having a full-funnel view and making sure that from first touch to closed deal, you've got consistency. By the way, this seasoned PE operating partner dropped a gem I'm definitely stealing during the call: "The only thing you can eat is a closed-won deal." That should be your north star, with all other efforts strategically aligned to it. Otherwise, it's only a matter of time until you find yourself with an empty stomach.

11

4 Comments

Important fact about most startup (and VC) success stories. It is convenient to overlook this, but the best companies and products are not built on any specific timeline. The best people win, and that is the only thing that has consistently and repeatably truly won over the test of time.

39

KNOW YOUR REAL BUSINESS ECONOMICS • GAAP Revenue • Cash Flow • Cash • Contribution Margin • CAC • CAC Payback FUNDRAISING: PRESENT & SUBSTANTIATE FINANCIALS • Investor needs to know what your forecasts are • They need to believe them David Weiden, Khosla Ventures

5

📣 New Research for SaaS Leaders: ICONIQ Growth released a $1m-$20m ARR journey benchmark report. This report details the key questions, metrics, and trends that matter for early-stage SaaS companies, including how to quantify product market fit, how to navigate the Growth Plateau many SaaS companies face after $20M ARR, how to balance growth vs. efficiency, and what best-in-class looks like across the corresponding metrics. Download the complete report here (It's free, no reg needed): https://lnkd.in/e7NCCNk7 #business #softwarecompanies #organizationalleadership #salesleadership #salesmanagement #saasstartups #saasbusiness #saassales #saascompany #softwaresales #softwareasaservice #saasproduct #saasgrowth #productmanagement #businessstrategy #growthstrategies #gtm #gotomarketstrategy #gotomarket #productmarketfit #b2b #b2bsaas #productmanagement #monetization #bestpractices #expertadvice #growthstrategy #growthhacks #saas #saasindustry #saasbenchmarks #salesmetrics #saasmanagement #saasmetrics #growthstage #expansion #growthmetrics #arr #startupfounders #entrepreneurship #entrepreneurs #scalingup #growthrate #businessvaluation #revenueoperations #revops #revenuestrategy #revenueperformance #revenuestreams #scaleups #scalingbusiness #scaleyourbusiness #salessuccess #salesexcellence #saleseffectiveness #salesperformance #businessgrowth #startupchallenge #startupgrowth #startupstrategies #startupsuccess #earlystagestartups #startupjourney #preipo #ipo #postipo #financialmetrics #saasfinance #operations #longtermsuccess #benchmarkreport

17

July was the most exciting month on record at Unify 🤯🤯🤯 1) The numbers were out of control: → Total ARR +20% month-over-month → Pipeline grew by +110% month-over-month, I’ve never seen growth like this before → Unify powered 33% of our closed won revenue and 42% of total pipeline, our own product is a competitive advantage 2) The team is firing on all cylinders → 5 new all stars joined the team across engineering, growth, bizops, and sales → Shravya and Neema both closed their first deals in <2 weeks on the job 3) Product velocity remains at all-time highs. A few things we shipped: → Hubspot CRM integration → Zapier integration → Several additional big releases are in beta and will be announced soon To our current and future customers - we’re working insanely hard over here at @ Unify to deliver you next-gen product experiences over the coming months. We’re so excited for you to try them. In other news… Sophie, Chili, and I made it into our new San Francisco apartment and are loving it :)

155

32 Comments

Early stage companies can’t be simultaneously addressing every customer category, esp if there are different marketing, pricing, GTM, and other considerations in play. It is tempting to collect revenue from wherever it comes, but can backfire with messaging and a lack of focus.

22

3 Comments

The secret—if it ever was one—is out on private equity fondness for vertical software. While PE-backed acquisitions were down 50%+ from a peak in 2021, vertical buyouts have continued to grow, and the fervor seems to be gaining steam. In today’s essay, we will pose an answer to one question: is PE a viable path to exit for a venture-backed startup?

55

4 Comments

SaaS Capital's most recent retention benchmark presentation had this chart that caught my eye. 2023 was the year revenue growth and profit growth trends flipped. Investors still rewarded top-line growth, of course, but investors also started paying up for companies that could demonstrate profit growth, after years of punishing that sort of behavior. Without any dramatic changes to the overall macro environment, specifically any loosening on strategic M&A outcomes, I would expect more companies to demonstrate they actually "flip a switch" and go into the black to make themselves more appealing to financial buyers

11

Apollo.io launched a book on outbound sales 👀 Outbound is hard to execute, but using Apollo especially with practical tips in this guide, it'll start to work. You can also hear from B2B sales legends at Vanta, Census, Loom, HubSpot etc who generate more than tens of millions in revenue just through their outbound engine alone. Always love working with you all! Karli Stone zoë hartsfield Jennifer Rhima Check out the full book in comments 👇

72

7 Comments

Vertical SaaS companies are taking the tech world by storm, and for good reason! Here's why: 📌 Leveraging industry-specific data. Vertical SaaS gains a competitive edge by accessing and fine-tuning models on proprietary datasets, which creates a barrier against potential competitors. 📌 Deep Domain Expertise. Models are tuned for specific use cases, while the leadership team possesses an intimate understanding of the customers, which results in a superior product experience that often exceeds expectations. 📌 Market Penetration Potential. Vertical markets often have low penetration levels. With AI as a catalyst, businesses can establish a substantial presence in these untapped territories. 📌 Low Customer Acquisition Costs (CAC). Targeted marketing in Vertical SaaS keeps CAC low, allowing newcomers to compete effectively against incumbents bundling products. The resulting opportunity to gain market share by delivering a 10x improvement where previously incremental innovation was the norm has led to an explosion of AI-first companies across many categories within vertical SaaS. We had an inspiring conversation with Beata Klein from Creandum about how AI will impact the B2B SaaS space and why she believes there’s a big opportunity on the horizon(tal). Creandum was one of the finalists in the Firm of The Year category at the European VC Awards, and they have just rolled out a €500M oversubscribed fund VII. Tune in on EUVC for the full conversation! 🎧 https://buff.ly/4c7w7qo #venturecapital #angelinvesting #startupfunding #fundraising #europe

14

What early indicators signal that a SaaS startup is ready for rapid scaling? 🚀 In last week's episode of The Vertical SaaS Podcast, I was joined by Jamil Jaoui and Jeremy Parker from Jitterbit. Jeremy shared his invaluable insights on driving growth and transformation in vertical SaaS, leading to successful M&A outcomes. With a track record of stabilising businesses, pushing boundaries, and scaling companies to exits, Jeremy has been instrumental in multiple successful transitions, contributing to $billions in transactions. If you're navigating the challenges of scaling or wondering what it takes to position your startup for an exit, this episode is a must-listen. 🎧 Check out the full episode via the links in the comments below! 👇

26

1 Comment

Zuora is being acquired by Silverlake and GIC for $1.7B The acquisition price comes in at 4X ARR. About an 18% premium on the share price prior to the announcement. More than 50% lower than their peak valuation in late 2021. This is now the second enterprise SaaS take private in the last few weeks. Smartsheet is also being acquired by Vista Equity partners. In that case, Smartsheet investors will get a 40% premium. Tells me that perhaps there wasn't another competitive bid for Zuora. But seems cheap. 4X ARR. FCF positive 104% NRR. Still growing. I like the buy here from Silverlake.

9

There are 2 types of SaaS leaders: those who plan for sales velocity 'gotchas' and those who get blindsided by them. Sales velocity—how quickly deals close—is key to growth, but hidden hurdles can derail even the best strategies. I’ve outlined 10 common 'gotchas' that can slow your sales velocity and how to identify them early on: https://lnkd.in/e5uhngrd #saasgrowth #salesstrategy #velocity

3

2 Comments

Soooo pretty much how French VC has always been. VC firms suing each other. LPs firing GPs. LPs taking funds back. VCs suing entrepreneurs. It's always been a dramatic scene. 🇫🇷 🐓🍷🥖 https://lnkd.in/eK8JbgDA #vc #venrurecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #money #business

222

44 Comments