SaaS METRIC OF THE WEEK: The SaaS Magic Number - this is simply the balance between Sales and Marketing Spend and new ARR/MRR created. It's a good number for indicative over or under spend on marketing and sales. Check the SaaS CFO on how to calculate the Magic Number and from Jason Lemkin, some more nuanced thoughts on issues he sees with the metric and a reference to IVP, who Benchmark the Magic Number is 1.2 on average.
FUNDRAISING: Another link to IVP this week to get 2022 started right. It's a comprehensive guide to SaaS capital raising so that you can be better prepared for your companies next round. This 25-page article covers financials, go-to-market strategies, market sizing, valuation, and storytelling.
FIPS: OpenView has delivered the 2021 Financial and Operating Benchmarks Report. This report is designed for SaaS operators to compare themselves against peers across many metrics that matter most in a SaaS business. View the interactive report here. Covers benchmarks such as employees, YoY growth, marketing spend, burn rate, NDR CAC, and diversity!
OUTAGES: If you were hiding under an internet rock last week or last month, you might have missed some pretty significant outages from Amazon Web Services and a big Zero-Day exploit across a lot of the Internet's Apache-based web servers. Which raises some serious questions - such as how resilient is the internet? This article makes an excellent case for #5 above; the web needs some decentralization to remain resilient.