Dave Kellogg covered the topics around the market trend in the USA, SaaS metrics and what to focus on in the current challenging economic climate in the 2023 Southern SaaS event.
Key Themes
10x revenue multiples are the new 20x.
Unicorns are rare again.
Pathway to profitability is the new growth.
Flat round is the new up round.
Recommendations
Extend their runway by (a) reducing cash burn (b) exploring venture debt (c) extending round (d) new round.
Make a plan to re-earn last round valuation. Roughly how can we double ARR before we run out of cash?
Focus on metrics that matter in the new world. Metrics that pick up momentum: Subscription GP%, Gross Churn, Rule of 40.
