[Recording] ScaleUp:CEO – 3 KPIs Every Growth-Stage Founder/CEO Should Measure to Build a Resilient Software Business

The metrics that matter to build a high-performing software business haven’t changed, but business conditions have. What separates a good startup from a great one is how they navigate those changes and deliver on key metrics. To sum it up, a good business must be resilient.

Bringing 25+ years of experience, our Onsite team (a team of operators that guide portfolio companies to success) knows how to help startups navigate challenging environments. Check out this session as our operators share learnings from their first-hand experiences with startups.

Check out the key points we covered:

3:42 – Why are we talking about KPIs and how do we think of them when working with portfolio companies? How should startups think about KPIs as they navigate new conditions and focus on efficient growth?

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5:30 – KPI #1 – Rule of 40

6:04 – Why is rule of 40 the preferred measure of “efficient growth”?

7:59 – Why are companies with higher rule of 40 scores disproportionately rewarded?

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13:03 – KPI #2 – NRR (Net Revenue Retention)

16:18 – How has improving NRR been a challenge for portfolio companies in the past, and what has Onsite done to address this challenge?

18:19 – What is the importance of pricing in driving NRR?

21:25 – At what point do you find it makes sense to have dedicated expansion or renewal roles versus having CSMs manage it all?

24:11 – What percentage of the time does customer success own the upsell versus sales?

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29:40 – KPI #1 – CAC (Customer Acquisition Cost)

29:41 – CAC is calculated in a variety of ways. How does Insight Partners think about and calculate CAC?

34:10 – When calculating cost of acquisition, should you include salary and commissions for sales and marketing?

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38:07 – Extended Q&A

38:15 – What have teams implemented operationally to overcome the struggle to calculate go-to-market metrics on a timely basis and use them for decision-making?

46:37 – How should you approach transaction or usage-based revenue?

49:08 – How do you think about cohort analysis?

Meet the Panelists:

Jeremey Donovan
EVP, Insight Partners

Hilary Headlee
EVP, Insight Partners

Charlie Gallagher
Senior Director, Insight Partners