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TechCrunch+ roundup: SaaS success stats, leveraging ad tech chaos, 2022 layoff trends

TechCrunch+ roundup: SaaS success stats, leveraging ad tech chaos, 2022 layoff trends Image
  • Posted on 02nd Jul, 2022 06:18 AM
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I remember the dread I felt as a startup worker during downturns when I read about mass layoffs at tech firms that had previously been considered ascendant.

According to a report by Capchase comparing more than 400 SaaS startups to unicorns that reached the public markets in the last two years, the top performers “are handily beating the ‘Rule of 40,'” reports Kyle Wiggers.

For those of us who haven’t memorized economic frameworks: The Rule of 40 is a metric investors developed to gauge the health and growth potential of SaaS startups. If a company’s combined growth and profit rates add up to more than 40%, it’s a good bet.

Capchase’s report looked at startups pulling in between $1 million and $15 million in annual recurring revenue. According to its findings, SaaS founders should target at least 80% and aim to surpass 110%.

“Financial discipline is key here,” said Capchase CEO and co-founder Miguel Fernández.


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“This includes cutting non-performing products, decreasing R&D and general and administrative expenses, and doubling down on creative strategies to recover customer acquisition cost instantly to reduce burn associated with growth.”

Useful news for investors and founders, but a worrisome signal for workers at software companies: Aggregator Layoffs.fyi tracked 75 layoff events in May 2022, and as of this writing, 152 in June.

I remember the dread I felt as a startup worker during downturns when I read about mass layoffs at tech firms that had previously been considered ascendant. My best advice: Strengthen your network. Find five co-workers to recommend on LinkedIn, reach out to someone you haven’t spoken to in a while, and do your best to keep your mind in the present moment.

And if you have ever discussed an idea for starting a company with a friend, think about working on a pitch deck. You never know…

Thanks for reading TechCrunch+ this week and best wishes for a happy Independence Day to our readers in the U.S.

Walter Thompson
Senior Editor, TechCrunch+
@yourprotagonist

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