If you want to break even, go APE.
Cloud companies generally rely on efficiency metrics like CAC payback and LTV-to-CAC, but “they feel more like financial metrics than operational ones, and it is difficult for employees to execute against these concepts,” according to Neeraj Agrawal, Brandon Gleklen and Jack Mattei of Battery Ventures.
Using data from Capital IQ and Battery’s research, this post contains key benchmarks for public companies and privately held SaaS businesses, along with recommended targets for companies with different ARR ranges.
“APE is an extremely simple metric we think could serve as your north star as you navigate these volatile times.”
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The TechCrunch Top 3
- Fake outKyle spoke with Stability Diffusion about 4chan getting ahold of its artificial intelligence art model and then to some deepfake experts about what this means and who might be at risk.
- Peloton rides into Amazon: That Amazon box just became more diverse. Peloton has started selling its equipment on Amazon, which opens up a whole new strategy shift and revenue stream for the beleaguered company, Brian writes.
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Startups and VC
We published a really fascinating piece written by Battery Ventures’ Neeraj Agrawal, Brandon Gleklen, and Jack Mattei on TechCrunch Plus (our premium subscription site) today, about how ARR per employee (APE) is one of the most meaningful efficiency metrics for startups. It makes sense; for a lot startups, the number of employees is one of the biggest cost bases — more, even, than customer acquisition. It’s a fresh take on how to measure company success, and well worth a read.
Okay, fine, have a few more:
- Keine Handy für Sie!: Chinese smartphone company Oppo stopped sales in Germany, even though the country is its operational hub. It claims it is still committed to Europe, reports Rita.
- What’s the beef?: Fake or lab-grown meat is sizzlingly hot these days, so it’s a rarity to see new startups wanting to improve the “real” meat industry. One of these companies is Lumachain, which is using computer vision to transform meat production. Christine reports the company raised $20 million or so to keep an eye on things.
- Okay, fine, you can have a mortgage: As more traditional finance products and services find their way into web3, there are some crypto startups emerging with a focus on adding decentralization to old-school practices. Jacquelyn reports that Spectral raised $23 million to bring some web3 juice to credit scoring.
- Putting writers out of businessCatherine reports that Scalenut raised $3.1 million to get AIs to write a first draft of marketing copy.
- Stay focused!: Hardware tag …read more