
The current startup ecosystem is facing challenges as companies struggle to scale at venture rates in a tough market. Founders and venture capitalists are caught in a dilemma of cutting burn rates to maximize runway while still needing to grow exponentially without significant hiring or marketing. The market is producing a cohort of smaller businesses, and many companies are not scaling at traditional venture rates. This situation is prompting a potential wave of mergers and acquisitions (M&A) in the software sector, particularly among enterprise SaaS businesses that are experiencing low growth and are stuck in a crowded marketplace.
It's overall healthy but still painful: Going from seed to a true Series A check - most don't make it. Most competitive Series A's see market pull to show a 3x in key metric over 6+ month stretch. Speed of getting to $1M, then $4-5M. Not on that path? Plan B time.
When I work with scaling SaaS Founders on their Go-To-Market, I notice some patterns that start happening when they reach $10M ARR… [Scenario A] Everything is great and they don’t need my help anymore. [Scenario B] They’re getting new customers, but the product debt is…
"Start with something insanely simple" Great reminder from @levie When growth slows, there's always the temptation to add more features and make the product more "powerful" But bigger isn't always better. Focus on what users love about your product. https://t.co/2iR9MRSYwq