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. |
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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
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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, .
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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
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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
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