Recent Content on Tomasz Tunguz 2015-04-07 17:00:00

Churn rates vary by ACV

Why do companies start below the mid-market?
Innovators Dilemma. New distribution mechanisms create ways of scalably acquiring customers that aren’t possible for the incumbents.

Why do SaaS companies always seem to move up market?

  1. Churn rates higher with smaller ACVs. Greater revenue = higher replacement costs.

  2. Sales teams scale. 10 guys at $125k each generating $500k in annual ARR for 5M or 3 guys as $350k each generating $2M ARR.