How Much is 20% More NDR Worth to Your SaaS Startup?
Tomasz TunguzVenture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How Much is 20% More NDR Worth to Your SaaS Startup?
A 20% delta in net dollar retention (NDR) may not seem like much, just a trifle, but make no mistake, it’s massive. In preparing for a presentation at next week’s Saastr Build conference, I reviewed this S-1 analysis for DataDog that I had published a few years ago. It shows the difference in the net dollar retention across three competitors in the same space, Application Performance Monitoring: DataDog, New Relic, and AppDynamics. At the time of IPO, DataDog charted 151% NDR compared to 123% for AppDynamics and 115% at NewRelic. That may not seem like a big difference. But it is. Let me show you why. Imagine three companies: one at 120% NDR, one at 140% NDR and the last at 160% NDR. In five years, assuming all else is equal, how much bigger is the last company than the first? The answer is 4.2x - four times bigger! And 1.9x bigger than the company with 120% NDR. Each marginal 20% of NDR is a doubling of company ARR in 5 years. |
Older messages
The Feedback Loops in Data that Will Change SaaS Architecture
Wednesday, March 3, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Feedback Loops in Data that Will Change SaaS
The Four Types of Startup COOs
Tuesday, February 23, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Four Types of Startup COOs If you asked 5
The Most Popular Startup Domain Suffixes - .com, .co, .gg - Which is Best for Your Business?
Monday, February 22, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Most Popular Startup Domain Suffixes - .com, .
The Most Effective Tools and Techniques for Selling Today - Office Hours with Jim Benton
Thursday, February 18, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Most Effective Tools and Techniques for Selling
How Much Should You Bet To Maximize Your Investments, or Your Company's Odds of Success?
Tuesday, February 16, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How Much Should You Bet To Maximize Your
You Might Also Like
Peppered Kitty and The Penal Guard 💂♂️
Tuesday, November 12, 2024
The breed of the non-human͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
🗞 What's New: HARO/Connectively is shutting down
Tuesday, November 12, 2024
Also: Use AI to beef up your security ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
the wizard of oz.
Tuesday, November 12, 2024
Read time: 53 sec. Today I want to tell you about Cristiano. He was part of our last Starter Story Academy sprint. And during his first two weeks, he was busy designing and tweaking his landing page.
💃 Beyoncé loves her products...here’s how she did it
Tuesday, November 12, 2024
The exact steps to build your beauty brand empire Hey Friend , We just launched our newest course, How to Build a Million Dollar Beauty Brand. In it, for the first time, Alicia Scott—founder of Range
[CEI] Chrome Extension Ideas #166
Tuesday, November 12, 2024
ideas for Amazon, Twitter, Developers, and Students ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Navattic's PLG funnel with Natalie Marcotullio
Tuesday, November 12, 2024
In conversation with Navattic's Head of Growth about their product-led growth (PLG) funnel. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
You have one shot to sell your business 🤞
Tuesday, November 12, 2024
Just One Week to Go Until Exit Strategy Launches!
Product manager is an unfair role. So work unfairly.
Tuesday, November 12, 2024
How to thrive in “the great flattening” by redefining work norms ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Growth Newsletter #223
Tuesday, November 12, 2024
It's not "what" but "where" ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
All stock, 6-figure deal
Tuesday, November 12, 2024
Plus, overcome a big barrier to exit planning: owner dependency ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏