Four (more) things we look for in SaaS startups
More than two years ago I wrote about what we look for in early-stage SaaS startups . Since then we've looked at hundreds of SaaS startups and have gained additional insights through the work that we've been doing with the SaaS startups that we have invested in. Therefore I thought it would be time for a follow-on post with some additional thoughts. In the original post I focused primarily on early metrics as an indicator of product/market fit and of a favorable CAC/CLTV ratio in the future. Today I want to put more focus on factors that kick in a little later in the lifecycle of a SaaS company – aspects that have an impact on a company's ability to scale customer acquisition, increase ARPA and create lock-in. In other words, factors that can make the difference between a "good" and a "great" business. Note that none of these factors is a must-have for building a successful SaaS company. For each one of them you'll probably find some great counterex...