Dear Reader,
Welcome to the 17th edition of the good reads newsletter by Malpani Ventures. Sharing your weekly dose of articles for this weekend’s reading!
How to raise venture capital with poor customer retention
https://blog.stage2.capital/how-to-raise-venture-capital-with-poor-customer-retention
Good customer retention is the hallmark of a recurring revenue business because you do not start with zero revenues at the start of every new year. Bessemer Venture Partners looks at net dollar retention as one of the key metrics to identify a good business. Hence understanding where you stand with respect to retention and your ability to raise capital is essential for founders. This post demystifies some of it.
Building sales teams from the ground up in PLG environments
https://openviewpartners.com/blog/building-sales-teams-from-the-ground-up-in-plg-environments/
Whether we like it or not, the world is moving towards product led growth (i.e. PLG), one company at a time. But PLG does not mean no sales motion - but a more qualified sales motion. It is important to structure the sales team the right way, capture and analyze data which helps you refine your process, and keep experimenting.
Vertical software wins in Bull and Bear markets
https://www.indexventures.com/perspectives/vertical-software-wins-in-bull-and-bear-markets/
Vertical software as a service or vSaaS is a cloud or mobile first software which serves the unique workflows of certain industries. Previously considered too niche, the space is now beginning to explode. vSaaS works across the cycle because it serves the must-have part of the business (often doubles as the operating system of the business), helps businesses become more efficient, and provides the advantage of selling more products to existing customers since a lot of the workflows are automated with better reporting, and hence monitoring.
Post of the week
https://www.linkedin.com/feed/update/urn:li:activity:6956471362802585600/
Founders should understand the micro-insights of a geography or sector more than macro tailwinds. A founder operating in SEA mentioned despite similarities in demographics and income levels, SEA countries are very different from those in the Indian subcontinent. Because they’re plagued by the vagaries of the weather, in addition to being oppressed since decades, these island nations find every small opportunity to celebrate which mean longer holiday seasons, more downtime, and slower operations. This is a unique customer insight which founders need to build with.
Announcement: Malpani Ventures MVP for B2B SaaS
https://malpaniventuresmvp.carrd.co/
Malpani Ventures is happy to announce the start of a limited time pre seed programme for B2B SaaS companies with the chance to raise Rs 50 lacs for 2.5% equity in 21 days. If you are a B2B SaaS founder working full time on a business which has an MVP with beta or early paying customers, please apply here.
Until next time!