Lesson 16 of 30: Do You Actually Need Capital? 🤷♂️
Learn the key stages of building a successful SaaS growth engine. Discover why rushing into institutional venture capital can be a mistake.
In this SaaS growth lesson, I discuss the key stages of building a successful SaaS growth engine, emphasizing the importance of not rushing into raising institutional venture capital.
Not yet a member? We invite you to apply to join the community at SaasRise (for SaaS CEOs/Founders) or GrowthRise (for B2B Marketing & Sales Leaders).
This is just a sampler for our upcoming live 16 week Done-With-You B2B SaaS Growth Program.
In this lesson, I discuss the key stages of building a successful SaaS growth engine, emphasizing the importance of not rushing into raising institutional venture capital.
I highlight the need to reach at least $2 million in ARR and establish essential growth channels first. Members are advised to focus on profitability, scalability, and strategic partnerships and to build their proven multichannel growth engine with positive unit economics (6:1 LTV:CAC ratio or better and 6-12 months payback) before seeking external institutional capital that can existentially threaten the company and destroy the value of common shares and founder shares if done incorrectly.
Homework: Read this Harvard Business School case study on iContact’s $40M Series B Financing (and our $15M secondary liquidity round for founders) that covers how we were very capital efficient, always raising less than 1x our ARR in venture capital
We'll see you next time with more killer SaaS growth and scaling content.
In the meantime, check out our upcoming live 16 week Done-With-You B2B SaaS Growth Program, designed to be the best program for scaling B2B SaaS firms from $1M to $100M in ARR by building a predictable revenue machine and combining ABM lead list building with AI personalized outbound with scalable digital advertising.
The next cohort of the B2B Growth Program is starting soon - apply here to join us.
To your growth,
Ryan
Ryan Allis, CEO & Founder
SaasRise - For SaaS CEOs & Founders | www.saasrise.com
GrowthRise - For B2B Marketing & Sales Leaders | www.growthrise.com
Austin, TX
P.S. - Be sure check out GrowthRise, our new mastermind community for B2B Marketing & Sales Leaders at www.growthrise.com where we teach how to rapidly scale up revenue within a B2B firm. Send your Head of Marketing, Growth, or Sales to join us and we'll take good care of them!
About the Author:
Ryan Allis is the CEO and co-founder of SaasRise, the community for SaaS CEOs & founders, and GrowthRise, the comunity for B2B Marketing & Sales Leaders. Ryan founded and grew iContact as CEO to $50M ARR, sold it for $169M, and has an MBA from Harvard Business School. Today, Ryan is the top SaaS CEO coach for rapidly scaling up revenue and achieving $100M+ exits. He's coached and guided the CEOs of high growth B2B SaaS firms like Instantly, Clearstream, Seamless, Tatango, RNL, RXNT, Sojern, and many others.