All posts tagged: metrics

This week in data: Why metrics don’t matter

This week in data: Why metrics don’t matter

Join leaders in San Francisco on January 10 for an exclusive night of networking, insights, and conversation. Request an invite here. In this week’s CarCast, we discuss tech and business predictions for 2024, your enterprise AI strategy and how you might want to measure your life. CarCast highlights: The CarCast also includes extras such as “How will you measure your life?”, a timely summary of Clayton Christensen’s philosophy on the meaning of life and its measurement. Bruno Aziza is a technology entrepreneur and partner at CapitalG, Alphabet’s independent growth fund. DataDecisionMakers Welcome to the VentureBeat community! DataDecisionMakers is where experts, including the technical people doing data work, can share data-related insights and innovation. If you want to read about cutting-edge ideas and up-to-date information, best practices, and the future of data and data tech, join us at DataDecisionMakers. You might even consider contributing an article of your own! Read More From DataDecisionMakers Source link

Metrics that matter: 3 practical observations on valuation from an Index Ventures partner

Metrics that matter: 3 practical observations on valuation from an Index Ventures partner

Paris Heymann Contributor More posts by this contributor Acquisition, retention, expansion: Why SaaS founders must understand GDR and NDR Metrics that matter: 3 KPIs to track on the path to profitability As part of the Metrics That Matter series, we’ve written about three analyses to track the path to profitability and two metrics to calibrate retention and expansion. These metrics serve as both outputs and inputs. They are outputs from the activities of people at companies working hard to create compelling products, distribute them to customers, and drive the business forward. They are also inputs to valuation, a topic especially pertinent in today’s market. Now, in early December 2023, we are at the second anniversary of an all-time high for the S&P 500 in November 2021, and valuation levels have reset with some pressure on price-to-earnings (P/E) multiples: Image Credits: Index Ventures Given the reset, founders, operators, investors, and analysts alike are beginning to rebase expectations and take a first principles approach to valuation amid a rising interest rate environment. Over the years, there has …

The most important metrics for SaaS funding in 2024

The most important metrics for SaaS funding in 2024

Miguel Fernandez Contributor Miguel Fernandez is CEO and co-founder of Capchase, which provides non-dilutive financing to SaaS and comparable recurring-revenue companies. More posts by this contributor Revenue-based financing: A new playbook for startup fundraising Move over, TAM. There’s a new essential metric in town. Over the years, I’ve reviewed thousands of data points from growing SaaS companies and identified growth indicators beyond the “highlights” that most VC firms look at — and ones that are more relevant to today’s scrupulous funding environment. The predictability of a startup’s viability and success goes deeper than total addressable market (TAM) — way deeper. In the heyday of VC-backed growth, startups had to lock in just two key metrics to secure funding: TAM and revenue growth; the larger the better. But the downturn of early 2022 brought another priority to the forefront: sustainable growth. It’s tricky because it’s not a single metric — it’s more of a movement. In many ways, sustainable growth looks different across industries and products, but for the average SaaS company, it’s underpinned by one …

Anti-Instagram photo-sharing app Daylyy has no vanity metrics, filters or algorithm

Anti-Instagram photo-sharing app Daylyy has no vanity metrics, filters or algorithm

While social media has its perks, it can also be a toxic wasteland crawling with hate comments, unrealistic body standards, scammers and spam bots. As this toxicity continues to infest the digital landscape, new social platforms emerge, determined to remedy our distorted online world. Daylyy is a photo-sharing social app where you can only snap photos in real time, preventing you from uploading filtered and augmented photos from your camera roll. Not only does this take the pressure off to post a perfectly crafted image and caption, but it also allows you to be your authentic self. “[Daylyy] is a true reflection of everyone’s daily life,” co-founder and CEO Austin Anderson told TechCrunch. “It’s a real-time social media app. There’s never going to be filters, and you’re not going to see any uploads. You also won’t see things like vanity metrics or numbers. And, most importantly, no algorithm.” Filter-less daily photo sharing exists within other apps — BeReal, Minutiae, Locket and LiveIn — however, Anderson argues that Daylyy rivals use “gimmicky” features. “We saw people …

New California law would force firms to report diversity metrics

New California law would force firms to report diversity metrics

California is set to pass the country’s first legislation that aims to increase diversity in venture capital. SB 54 passed the state Senate with a vote of 32-8; next, it will go to Governor Gavin Newsom’s desk. The bill requires venture capital firms operating in California to report the diversity breakdown of the founders they fund to the state; this includes reporting on the gender and ethnic and racial background of the founders, in addition to the dollar amount given to them. Senator Nancy Skinner, the bill’s sponsor, told TechCrunch+ that she’s very optimistic that Newsom will sign the bill. “Venture capital firms might not be aware that their rate of investment is so low,” she told TechCrunch+. “So this disclosure, this transparency, hopefully, will nudge them to do better.” Supporters of the bill see it as a massive step toward increasing transparency in the venture capital industry, where less than 3% of all capital is allocated to women and Black founders. SB 54 would also require firms to collect and release their diversity data …

3 key metrics for cybersecurity product managers

3 key metrics for cybersecurity product managers

Ross Haleliuk Contributor More posts by this contributor Time to trust: Questions cybersecurity customers ask and how to answer them 4 ways cybersecurity startups can boost adoption and shorten time to value The conventional product management wisdom suggests that one of the responsibilities of a product leader is to track and optimize metrics — quantitative measurements that reflect how people benefit from a specific solution. Anyone who has read product management books, attended workshops or even simply gone through an interview, knows that what is not measured cannot be managed. The practice of product management is, however, much more nuanced. Context matters a lot, and the realities of different organizations, geographies, cultures and market segments heavily influence what can be measured and what actions can be taken based on these observations. In this article, I am looking at cybersecurity product management and how metrics product leaders are tempted to track and report on may not be what they seem. Detection accuracy Although not all cybersecurity products are designed to generate some kind of detections, many …

It’s never too late to align product-market fit metrics with your company’s values

It’s never too late to align product-market fit metrics with your company’s values

It’s a perennial question for early-stage startups: how does one find product-market fit (PMF)? What do you do to ensure that your idea takes such a form that it meets some sort of demand in your target market? How do you get your idea to resonate in the world? At TechCrunch’s Early Stage event a few weeks ago in Boston, David Thacker, a general partner at Greylock, advised startups to keep it simple: focus, adjust and adapt. The definition of PMF is, for the most part, subjective, but Thacker looks for something more tangible. “It doesn’t mean you’ve launched a product and scaled it to millions of customers and users,” he said. “What I’m looking for is some semblance that what you’ve built is resonating with a set of customers.” This metric may vary by stage, but Series A and onwards is when it becomes critical for a company to have PMF. At that stage, Thacker said, investors want to see a moderate scale of consumer usage, and as a company looks toward a Series …

TechCrunch+ roundup: Customer personas, content that resonates, efficiency metrics VCs love

TechCrunch+ roundup: Customer personas, content that resonates, efficiency metrics VCs love

I celebrated a friend’s birthday with a large group a few days ago and realized how hard it is to tell who can’t carry a tune when the entire room is singing the same song. The same holds true for B2B SaaS startups: because so many are generally focused on LTV:CAC ratios, it can be a good way to obscure weak metrics. Dividing Customer Lifetime Value by Customer Acquisition Cost offers useful insights, but how accurate is your historical retention data, and how much have you collected? Full TechCrunch+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription “Today, investors zoom in on other efficiency metrics that paint a more reliable and comprehensive picture of the startup’s capital efficiency, and so should you,” says Igor Shaverskyi, a partner at VC firm Waveup. In this TC+ column, he offers a formula and benchmarks for calculating “how long it will take for your customer acquisition costs to pay off.” Now that VCs are leaning harder into due diligence, …

TechCrunch+ roundup: VC robotics survey, Visa Bulletin update, SaaS engagement metrics

TechCrunch+ roundup: VC robotics survey, Visa Bulletin update, SaaS engagement metrics

A robotic taxi drove me home a few nights ago, and it was just fine. As it carried me through Golden Gate Park at a steady 23 miles per hour (slowing down to 6 mph for every speed bump), I felt like a packet of information being delivered across a network. Since our last robotics investor survey in February 2020, Figure emerged from stealth with its bipedal humanoid robot, and Boston Dynamics’ Atlas became a parkour expert. Autonomous tractors, semi trucks and warehouse restocking bots have gone from concept to reality. Is robotics mainstream now? Full TechCrunch+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription “The time in between has arguably been the most important years for the sector,” writes hardware editor Brian Heater, who asked 13 investors about several topics, including robotics as a service, emerging consumer products, and how much of a role it might play in addressing climate change: Milo Werner, general partner, The Engine Abe Murray, managing partner, Alley Robotics Ventures …

4 SaaS engagement metrics that attract investors

4 SaaS engagement metrics that attract investors

Oleksandr Yaroshenko Contributor Oleksandr Yaroshenko is head of investor relations at Headway, an edtech startup with operations in Ukraine, the UK, Poland, and Cyprus. Investors wish they could forecast the future and decrease the uncertainty regarding how a business will grow. Subscribers’ retention on the annual plan is directly related to the product value. However, it comes with a significant lag, e.g., an annual plan is only observable a year after the customer signed up. So, the best predictors for resubscription are the current engagement rates of your existing subscribers. Let’s see what engagement metrics gain the most significant interest from investors. Engagement over long periods at the end of a subscription There are many engagement metrics to look at. What matters most is how your subscribers engage with the core app functionality over longer periods, specifically closer to the end of their subscription. If they are using it actively, this signals they are getting the expected (or hopefully even beyond expected) value from the product, increasing the probability of their renewing for another year. …