The SaaS Metrics that Matter Most with Laura Lenz, OMERS Ventures
Based in Toronto, Silicon Valley, and London, OMERS Ventures invests in stand-out technology businesses typically raising Series A to C with a first cheque ranging from $5M – $25M. The team invests in all areas of SaaS, with a particular emphasis on the Future of Work, Retail Tech, and Fintech.
OMERS Ventures has invested in a number of Canadian SaaS companies including:
Jobber – Field service management software to schedule jobs, optimize routes, send quotes and invoices via text messages, and get paid on the spot.
Klue – Market and competitive intelligence software that enables competitor research and delivery of sales battlecards to B2B Sales teams.
Solink – Video surveillance software that connects security camera footage with point of sale data and creates a dashboard of analytics and searchable moments.
TouchBistro – A software company that develops a restaurant point of sale system for the iPad.
While the Rule of 40 is a good starting point to try and balance the inevitable trade-off required between growth and profitability for a company aiming to scale, Laura recommends growth-stage CEOs track a series of specific metrics that demonstrate velocity, profitability, and capital efficiency.
Examples of each include:
- Net Burn Ratio, also called Burn Multiple
Laura advises CEOs to think about how the metrics stack up throughout each round of financing – because it is rare that a company will be hitting the mark across the full set of core metrics. For example, the team may have demonstrated strong Net Dollar Retention during the Series A funding round, but acknowledged the need to improve Revenue per Employee or Rule of 40 as they scaled. Naturally, when the company starts the Series B fundraising, investors are going to want to see improvements in these metrics.
As Laura explains, as a company matures and progresses from its A round through to its C round, each functional area should be thinking about its own key metrics. Here’s a starting point for what some of those metrics could be:
Sales – Number of demos booked, conversion ratios of pipeline stages, days in sales cycle, quota attainment, win/loss ratio.
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