The SaaS Success Database

Co-written with my colleague Neeraj Agrawal and originally appeared in TechCrunch.

What does it take to build a billion-dollar SaaS enterprise-software company? We gave a 30,000-foot answer to this complex — and fascinating — question in a recent TechCrunch post, The SaaS Adventure.

To recap: We’ve observed seven key phases in most SaaS companies’ go-to-market success. Most of the phases center around a mantra we call “triple, triple, double, double, double” (T2D3 for short), referring to a company’s annualized revenue growth.

We dubbed this journey the “SaaS Adventure,” which is broadly how we view the job of a VC: to serve as a more experienced travel guide to SaaS companies in their climb to the billion-dollar summit and, hopefully, beyond.

We got a very strong response to the SaaS Adventure post and the T2D3 concept. We were also, at the same time, impressed with fellow VC Aileen Lee’s original unicorn-company analysis, which she just updated with some new lessons last month. All this spurred us to conduct a more in-depth analysis of SaaS companies.