What is “good” growth and an “acceptable” burn? We’ve created a new tool that can hopefully help you answer that question for your company. By entering a handful couple of data points below, you can track the change in your relative growth and burn multiple. Both “good” and “acceptable” burn rates differ by company size, so your position on the chart shows your growth and burn multiple relative to other SaaS companies of a similar size. Then compare your position with our framework for growth vs. burn tradeoffs.
Make sure you read the original blog posts sharing advice for venture backed CEOs and our methodology for developing the benchmark set.
Please email edi@scalevp.com with any feedback on the tool – we appreciate your input.
What does this mean for you?
You’ve noticed by now that the tool is helpfully split into four quadrants. Where you are on the map can affect what direction you should head in, and what your options are to get there. In the post above, we talk about the four quadrants (also shown below) in more detail and walk though some thinking on how to navigate up and to the right – and what other factors could affect how you get there (cash balance, valuation, etc.).
Looking at pretty 2-by-2’s and reading articles is the easy part. Making and executing a plan to achieve your target trajectory is the hard part. Hopefully these posts can provide a jumping-off point and make the hard part a little bit easier.
