Unfortunately, up to 70-point margin swings are quite common in the software industry. Pricing mistakes like this quickly erode trust. By applying B2C sales tactics to your B2B software, you could be inadvertently absorbing a very large amount of risk.
By Keith Fenech, VP, software analytics, Revulytics
Gartner has predicted that by 2021 75 percent of software providers will rely on insights from embedded software usage analytics to inform product management decisions and measure customer health (Predicts 2018: Technology Go-to-Market).
For years, Profitero’s financial operations were managed with spreadsheets and accounting software. As is the case with many SaaS businesses, spreadsheets had become a fill-the-gap financial tool that the company eventually would outgrow.
If you don’t prepare ahead of time, you could get stuck not producing the key SaaS metrics that investors want to see when they’re considering whether to invest in your next round. Not preparing the right SaaS metrics by venture stage for your VCs can ultimately reduce valuation, or even kill your fund raise.
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