Christian Ritosek’s Post

SaaS Superiority ____ Great article out today in Pitchbook about the superiority of expected returns for early-stage SaaS companies. "PitchBook’s VC Emerging Opportunities report calculated that the annualized expected returns for early-stage SaaS companies was 5.5% higher than the average of 10 VC tech verticals. That advantage has grown in recent years, up from 3.2% in 2017." Nobody should be surprised by this. Relative to other types of companies, SaaS companies have: - the lightest capital intensity - the highest gross margins - and the most recurring revenue. This is a winning combination. Companies with the highest gross profit can afford to invest the most back into sales and marketing so they usually grow faster and more efficiently than their non-software counterparts. And efficient growth drives valuations. This is why PHX Ventures looks for founders who want to work with experienced B2B SaaS operators to build sustainable growth companies capable of getting to $100m in ARR. It's what we live for. This is not investment advice, but if you are an accredited investor seeking outsized returns, it's hard to understand why you wouldn't be over-weight SaaS. It's the greatest business model in history. ____ PS - Here's a link to the full article: https://lnkd.in/gAkw-CBR PPS - If you are a SaaS nerd like me, I hope you will share this with other SaaS nerds. #SaaS #b2bsaas #software #founders #vc

Why Venture Capitalists Continue to Trust Staria – More Than Just a NetSuite Partner. We have seen a growing number of venture-backed companies and VCs recognizing the value of partnering with Staria for their scaling needs. It’s not just about having the right ERP in place; it’s about ensuring that the solution aligns with the growth ambitions and complexities of each portfolio company. At Staria, we leverage our years of experience with VC-backed businesses to align with your values and deliver results that matter: Unmatched Expertise Across the VC Space. With years of working alongside venture-backed companies, we understand the unique challenges these companies face—fast growth, global expansion, and evolving business models. Our approach is to support each business with tailored solutions that meet their specific scaling needs. Global Reach, Local Expertise. As the #1 NetSuite Partner in EMEA, our Pan-European presence and partnerships enable us to provide seamless support across borders. Whether your companies are looking to expand within Europe or globally, Staria is here to guide them every step of the way and if we do not have a solution, we will investigate on our clients behalf free of charge as we need this information to continue to be the very best. A Comprehensive Tech Ecosystem. Beyond just ERP, we’re helping your companies stay ahead with partnerships that include Avalara, Workiro, Pleo, Zone & Co, Payhawk, Celigo, Salto, Kolleno, and FloQast. These best-in-class solutions create a tech stack that accelerates growth, simplifies compliance, and maximizes efficiency. Value-Aligned Growth. We don’t just implement software—we align with your mission, ensuring every tool and strategy we introduce supports the vision you have for your portfolio. Growth is not just about scaling; it’s about scaling right. Trust Staria to keep delivering the results that matter for your portfolio companies. #NetSuite #VentureCapital #PortfolioGrowth #Staria #ERP #ScalableSolutions #EMEA #BusinessSuccess #VCGrowth #TechStack #Efficiency #GlobalExpansion Please get in touch to have a conversation, it costs absolutely nothing but your time.

Interesting report exploring how US software brands have structured and scaled their launch into Europe. Some of this resonates from my experience as a European GM on the ground but interesting to see a wider perspective. 💡 Success in Europe is so much more than replicating a US sales strategy. 💡 Most US based founders underestimate the size of the opportunity and overestimate their ability to capture it. 💡 Fast local market adaption both in product and sales messaging is key. 💡 Org. alignment on KPIS and what ‘success’ looks like is vital for effective cross company collaboration. 💡 Europe can account for up to 40% of global revenues for top performing US companies at IPO! #internationalexpansion Frontline Ventures - thanks for the report. https://lnkd.in/ejwfmgF9..

$150 Million There are so many posts about how to build successful VC-backed companies. A lot of these focus on the need to find a way to grow to $100 million in annual recurring revenue (ARR). But why is that? Well, it’s because, in the past, you could expect a multiple of 10x ARR when pricing a SaaS company. This would result in 10x $100 million = $1 billion = 🦄 Unicorn 🦄. In 2024, the median multiple is 6.8x, so if the old saying were to hold true, ARR would need to be closer to $150 million, all else being equal. When SaaS companies are being valued, of course, many other factors come into play, such as the growth rate of ARR and Net Revenue Retention. So, we are definitely dealing with a very simplified method. But it’s still a simplification that can help us conceptually understand what kind of beast we are trying to build. However, the difference between $100 million and $150 million is significant and could mean several years’ difference in when one can expect the coveted unicorn valuation. And these years need to be financed—and often with other people’s expensive money. Perhaps it's time to rethink some of our concepts and rule-of-thumbs?

🤫 For over a decade, I've been building SaaS products for customers in Germany, Austria ... let's say, continental Europe and sometimes beyond. Having engaged personally with hundreds of these businesses - spanning startups, IT, consulting, manufacturing, real estate, retail, public sectors, NGOs, etc. - I can testify to one fact: They. Need. All. The. Features. At least, that's what they're willing to pay for. I should be thankful that the prevailing startup mantra "Focus on one feature. Keep it simple." remains so tenacious, keeping competitors at bay while enabling my product to thrive. This primarily VC-driven idea falls short in the real world, where companies face myriad challenges daily. Simplicity isn’t about offering less; it's about integration and effectiveness. The true value doesn’t come from solving one problem superbly but from: a) making solving multiple problems feel like solving one and b) eliminating the need to juggle multiple systems. From my experience, truly product-driven teams engage in extensive dialogue with clients, transforming typical sales pitches into dynamic brainstorming sessions. The ONLY proven strategy: To deeply understand and enhance your users’ FULL operational day, making both them and their teams more successful. So, to all the self-proclaimed experts advocating for oversimplification, unless you’re showing 50% MoM growth in D-A-CH, we’ll stick to our guns. We know what works. And we're not just making software; we're making a difference. #B2BSaaS #TechLeadership #Innovation #CustomerSuccess #fynk

What pricing strategies should I apply to my product? How should I package my SaaS ? How should I talk about pricing with my customers? 👀 🔝 These are some of the most common questions we get from early-stage founders at Pear VC! ✨ I couldn't be happier to announce that Kyle Poyar will be joining us at Pear VC's upcoming *Zero to $1M: Winning Early GTM* conference on 9/5 to talk about the best practices when it comes to pricing software products! 👏 I've followed Kyle for quite a long time and his articles are a common resource I share with founders 👨🏫 . He has spent the past 15 years working with, investing in, and advising top B2B startups as a consultant at Simon-Kucher turned VC operating partner at OpenView. He's a leading expert in SaaS pricing strategy, one of the most overlooked levers for accelerating revenue growth. Kyle shares tactical insights about how to grow faster in his newsletter, Growth Unhinged (reaches 50,000+ subscribers), and on LinkedIn. 🤩 ➡ We have limited spots available for our conference-- APPLY NOW! Details and application here: https://lnkd.in/g5F_dz5W #founderledgrowth #founderledsales #GTM #earlystage #pricing #SaaS

Rethinking the Rule of 40 🤔 Is the Rule of 40 still the gold standard for evaluating SaaS companies? ⚡️ Mikael Johnsson , a senior technology investor and advisor with a robust background in software, mobile, and internet sectors, questions its validity in a insightful article, "5 Reasons I Hate the Rule of 40." I found on SaaSiest. With experience from over 30 transactions and having served on more than 20 company boards, Mikael argues that #SaaS leaders and investors might be focusing on the wrong metric, when taking R40 in the center of company valuation. ??? But how can it be that the R40 is being called into question when it was considered the "measure of all things" for years? Time and a good reason to take a closer look. I interpret Mikaela 5 topics as follows: 1. Misalignment with Long-Term Value Creation: Does focusing on R40 hinder more meaningful growth metrics? 2. Arbitrariness of the Metric: Is the '40' in Rule of 40 just a convenient number, not optimized for all scenarios? 3. Indiscriminate Application: Are we applying R40 to companies too early in their lifecycle? 4. Questionable Accuracy and Laziness: Does R40 ignore the nuances of SaaS financials? 5. Distraction from Core Business Objectives: Does the chase for R40 compliance stifle innovation and market adaptation? My take on each point: 1. Agree - R40 primarily aims for short-term asset realization rather than long-term sustainability. 2. Agree - While R40 makes initial performance comparisons seem straightforward, the diversity among startups and scale-ups means their R40 should be interpreted differently. 3. Agree - To gain a uniform/comparable perspective, certain developmental milestones must be achieved first. 4. Partially Agree - R40 can be a useful metric to assess growth and margin past a certain point in a company's development. However, many companies experience rapid growth without yielding profit margins for years. 5. Agree - Too many startups and scale-ups focus excessively on metrics and R40, often at the expense of investing in a robust and mature product. Valuations and multiples become overly dominant. I'd love to hear your thoughts on this. How do you evaluate the effectiveness of R40 in your SaaS ventures? Check out the full article for a deeper insight >>> https://lnkd.in/eZu9YjbB #RuleOf40 #SaasMetrics #CompanyValuation #ValueCreation #Startup #Growth

I met Han in early 2019. His company was only 2.5 years old. We talked about partnering between both products. And so we did. After an integration between both platforms, we moved into some joint GTM activities. At Teamleader, my love for Partnerships and Nearbound was born due to partners like Han and Leadinfo. After tons of conversations and multiple lunch meetings, our paths ended (temporarily) since I moved on from Teamleader. But that didn't count for Han. He moved on with his entrepreneurial dream. With the right leadership (under his reign), strategy (including Partnerships), talent (appointing his brother Quirijn as CEO), and the right execution, they eventually got acquired by team.blue 2.5 years ago. Today, I had the pleasure to lunch with both brothers at our Personio Amsterdam office. And besides the fact that we all got a few more years of experience under our belts, the conversation was as vibrant, energetic, and impactful as always. It was based on shared values, a willingness to share openly and vulnerably, and a genuine willingness to help each other. The base principles for any successful SaaS business. Small and medium-sized organizations are the backbone of economies and societies. And LeadInfo and Han & Quirijn showed me this once again. The formula to success? - Strong entrepreneurial leadership. - Strong belief in Processes over People. - Strong belief in the power of Partnerships. - Strong belief in Hiring & Developing great People. B2B SaaS is not different than the Rotterdam and Amsterdam merchants did centuries back. It is about the right Leadership & Strategy that is executed by the right Talent consistently. This sounds so easy, but only 90% of startups make the 5 years mark. After today, I understand once again why I love what I do. Learning and sharing entrepreneurial dreams, GTM strategies, hiring and execution with and from 'merchants' in the Benelux like Han & Quirijn. We can be very proud to have merchants like you two in our country and the B2B tech scene to drive innovation and talent forward. Thanks Brothers ✌️

First I had to recap what the rule of 40 was: In its most commonly used form, R40 says that a company’s %-age revenue growth rate plus its %-age profitability margin (usually at EBITDA-level) should be equal to, or ideally greater than, 40. So if a company grows 30% and can do so with a 10% profit margin then its R40 = 40 (30+10). Then I realized that the times of scaling a company at all costs is gone. Scaling smarter is the new paradigm. So this means that I need to put an even larger focus on defining the salesprocess in a way to support the scaling smarter concept.

🚀 𝗗𝗼 𝗩𝗖-𝗯𝗮𝗰𝗸𝗲𝗱 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗴𝗿𝗼𝘄 𝗳𝗮𝘀𝘁𝗲𝗿 𝘁𝗵𝗮𝗻 𝗯𝗼𝗼𝘁𝘀𝘁𝗿𝗮𝗽𝗽𝗲𝗱? Excited to announce my braindate at SaaStr Europa in London! I’ve analyzed data from over 2,200 SaaS companies. Join me for a sneak peek into our upcoming report as we dive deep into SaaS growth insights. Link to register here:  https://lnkd.in/dn7bkTJs #SaaStrEuropa #SaaS #Growth