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I haven't seen this advice in this thread yet, but there is a path other than selling or raising VC. It's focusing and growing your revenue until you get throu
by vikp 9y ago
I haven't seen this advice in this thread yet, but there is a path other than selling or raising VC. It's focusing and growing your revenue until you get through this crunch.
We've been in a similar situation before, that we managed to grow our way out of. It is possible to get through this, keep growing your business, and do it all on your own terms.
To resolve the short-term feeling of being overwhelmed, here are a few ideas:
* Try to get more $$ upfront by converting customers to annual plans, or raising implementation fees.
* Defer some customers until your team is larger (or they pay more).
* List out what you're working on, and ruthlessly trim anything non-essential.
* Contract out what you can.
* Raise some angel or friends and family $$.
I don't know what your revenue is, but I'd guess a few hundred k ARR. In the medium term, if you can grow 5-10% a month, you'll double or triple your revenue in a year. This will give you a lot more optionality in the long term:
* You can just keep bootstrapping forever if you want.
* If you raise, you'll get much better terms with more revenue.
* If you sell, you'll get a higher price.
Of course, this depends on having solid growth channels, and a reasonably sized market.
Taking the time out now to chase VC funding when it's not there will hurt your ability to grow in the short and medium term. If you focus on growing revenue instead, you'll increase your chances at VC funding or a sale in the long term.
I'm happy to chat more if you want -- email is in my profile.
- PerfectElement 9y ago> I don't know what your revenue is, but I'd guess a few hundred k ARR. Is it normal for a SaaS with a few hundred k in ARR to be worth $14 million?
- vikp 9y agoNot typical, but possible with the right team/tech/connections. OP said that the local VC scene asks for 1M+ ARR to invest, which led me to think that revenue was lower.
- tedmiston 9y agoIt depends on the quality of revenue. If the few hundred k is very high quality on a rapid growth trajectory vs if it's heavily services based. Of course unit economics rule in the long run, but in the short term, it's more interesting to look at LTV:CAC.