SECURITY: The ever-increasing adoption of cloud-based software creates more exposure to bad actors looking to exploit vulnerabilities. Tech companies should be continually concerned about the security of the software being built. OWASP can help you out here - it’s a foundation working to improve the security of software and maintains a Top 10 list of the most critical security risks to web applications.
PROFESSIONAL SERVICES: It’s a weird open secret that a lot of B2B SaaS businesses generate a significant amount of revenue from implementation and deployment projects, often captured as revenue from Professional Services, due to deployment and configuration complexity. So what are the revenue benchmarks for a SaaS Business to captured revenue through professional services? On average it caps out at 11% of all annual revenue with Enterprise focused businesses but even at the lower end of town it’s still 5% of revenues with SMB focused businesses.
SALES: The Series A funding round is a stamp of approval, product-market-fit is evident and the capital is expected to be spent on growth. PointNine Capital has a great article on how to build a sales engine at Series A.
BUILD or BUY: I’m constantly in a debate (mainly with myself) of whether to build or integrate with an existing app/service to solve a problem in my business or introduce a new feature on behalf of a customer/feature request. So (like me), you should read this article to get a better grip on assessing the pros and cons of either a build or buy strategy.
ED-TECH: Not often referenced in this newsletter - but the sector has become a hotspot and a lifeline in eduction during the COVID-19 pandemic. So how impactful are the technologies to learning pedagogies outside of the traditional brick-and-mortar classroom? McKinsey have an extensive report here TL;DR - it depends on who, how, where and what - there are gaps.