If you want to break even, go APE.
Cloud companies generally rely on performance metrics like CAC return and LTV-to-CAC, but “they feel more like financial metrics than operational, and it’s hard for employees to execute against those concepts,” say Neeraj Agrawal, Brandon Glecklen, and Battery Ventures’ Jack. Mattei.
Using data from Capital IQ and Battery Research, this post contains key metrics for public companies and private SaaS businesses and recommended targets from companies with different ARR ranges.
“APE is a very simple measure that we think can serve as your North Star as you navigate these changing times.”
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This measure is not a panacea: APE varies by geographic region and other parameters such as gross margin or the company’s projected growth rate.
“Getting into high APE early in the maturation cycle can be a net positive,” they write. “In general, we believe a target of around $200,000 will serve most mid-stage/late-stage growth companies well.”
Note, this is not the case One measure to rule them all Thought leadership.
As Glecklen tweeted, “You only write about a metric in a blog post if you’ve discussed it with multiple management teams and you get consistent feedback that it’s useful.
Thank you very much for reading
Walter Thompson
Editorial Manager, TechCrunch+
@your main actor
The secret to doing great reference checks for potential employers
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Cognitive Dissonance and Confirmation Bias When it comes time to check candidate references, I hire enough people to help out.
Teams are prepared to hire candidates who have gone through multiple rounds of interviews, but checking references shouldn’t be a pro forma exercise.
HJ Jan Kamps shares six questions he asks during reference calls that “make for good conversation” and some tips on what to listen for.
Learning from my failures: Lessons from a 2-time founder
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All schadenfreude aside: it’s good to learn from our own mistakes, but it’s even better to learn from someone else’s.
Squadhelp CEO and founder Darpan Munjal has shut down his previous company, a fashion e-commerce business, after four years of “robust growth”. In hindsight, he says, early-stage funding created a false sense of security.
“Closing a business I truly believed in wasn’t easy. But I know I can start over if I’m willing to learn from my mistakes and apply the lessons wisely.”
Private equity firms must use 4 principles to win the competition for talent.
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My startup experience is focused on operations, so the venture capital world is still a black box to me in many ways.
I was surprised to learn that private markets are so vast: according to one estimate, alternative assets under management have a 9.8% annual growth rate, which is much higher than inflation or GDP. By 2025, the AUM pool will exceed $17 trillion.
Keeping people in private equity isn’t easy: new affiliates have to wait years before they get a carried interest, and an opaque compensation system doesn’t foster loyalty.
“Between salary, bonuses, interest, interest and management-company ownership, it can be almost impossible for employees to know where they stand financially,” says Richard Change, co-founder and managing partner of PFA Solutions.
Pitch Deck Teardown: Simba Chain’s $25M Series A deck
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Although TechCrunch did not cover blockchain startup Simba Chain’s $25 million Series A, the company still shared the win with TC+.
“My disdain for blockchain technology will definitely be on display this fall,” writes Haje Jan Kamps in a 19-slide deck.
In a low market, good messaging is not enough to manage international teams.
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Talent is spread across the globe, meaning startups that don’t respect cultural diversity are setting themselves up for failure.
Now that many companies are in cost-cutting mode, it’s important to follow local laws and social norms when it comes to laying off employees, said Sendbird CEO John S. Kim.
After exiting two startups with international teams, he wrote a TC+ guest post to help founders communicate with employees during difficult times.
“A company not only has a responsibility to inform its employees about what’s going on, but they also have to act in a way that resonates with their respective audiences.”
Dear Sophie: What should we know about the H-1B lottery before hiring STEM OPTs?
Image Credits: Bryce Durbin / TechCrunch
Dear Sophie,
What do my founding team and I need to know early on in order to be able to proceed with the STEM OPT candidates we are hiring for the next H-1B lottery?
– Strong strategy
