Is 5% a good monthly SaaS Churn Rate? Read on to learn the answer…
As a consultant to SaaS and Cloud providers that are looking to grow, I get asked what an acceptable SaaS churn rate is all the time.
This article was originally written in 2013 and has been updated several times over the years. The lessons are accurate even in 2020.
As I stated in 2013, the answer to “What is a good SaaS Churn rate,” was, “you want a churn rate to be ‘as low as possible.'”
In 2020 I just say, “let’s make churn a non-issue.” It will vary depending upon your market and your position therein. And it likely will never be zero. And that’s okay. Just make it a non-issue.
So, before you continue reading this article, if you’re in a position where you’re trying to figure out what an acceptable SaaS
Earlier this week, the Equity crew caught up with Work-Bench investor Jon Lehr to get his take on the current market, and how his firm goes about making investment decisions.
The conversation was a treat, so we cut a piece of it off for everyone to listen to. The full audio and a loose transcript are also available after the jump.
What did Danny and Alex learn while talking to Lehr? A few things, including what Seed II-level investments need these days to be attractive (Hint: It’s not a raw ARR threshold), and what’s going on in SaaS today (deals slowing, but not for select founders; relationships are key to doing deals today), and why being a VC is actually work.
But what stood out the most was how Lehr thinks about finding investment opportunities. While some VCs like to cultivate images of being gut-investors, cutting checks based on first Continue reading "Talking venture, B2B and thesis-driven investment with Work-Bench’s Jon Lehr"