The reality is most people aren’t that familiar with the definitions of ARR and MRR. And, to be fair, these abbreviations can be misleading.

One of the first things I often discuss with my SaaS founders is the pros and cons of monthly vs. annual subscription plans. This choice is always a trade-off between short term revenue growth, so-called MRR (monthly recurring revenue), vs. receiving more cash, so-called collections, on day 1 in exchange for a discounted annual offering. The discussion is always a tricky one. Founders naturally want to optimize for revenue growth. Especially in the early days, when the scale

There are three main product distribution hacks to do drive growth of a consumer product early on. Let's have look at each one of them.

Churn is one of the most misunderstood numbers in consumer investing. Make sure you are focused on the RIGHT core action to measure it.

Ah! So I see you, too, are one of those people who want to take over the world and change it for the better. Welcome, friend! You have a lot in common with the best entrepreneurs out there. 'What does it take for you to become the Queen / King of...' is a critical question I discuss with founders when I meet them. I think it is a brilliant exercise to align on targets and funding needs to get a company to the next stage. In this post, I focus on marketplaces, but you can appl

A few of weeks ago, Casper's S-1 filing unleashed a new wave of discussions on the business model viability of heavily venture funded tech companies, especially following the weak performance of some hyped tech companies recently. In this context, I thought I'd share my framework for evaluating online commerce platforms in the last decade (this framework does not apply to marketplaces and is updated regularly): While Casper checks most of the boxes (a big market with outdated

First of all, happy new year to everyone! I couldn't be more excited about the 2020s. As we are heading into this new decade, I continue to be bullish on consumer startups and remain confident that Europe can build on previous successes such as Skype or Spotify to catch up with the US and China. Building a consumer startup is extremely hard, but it's worth it. Potential returns are just so much larger than in enterprise. However, while the mobile platform has matured with pio

One year ago I wrote about the rise of B2C SaaS (or consumer subscription models). As businesses are moving from linear transactional channels (think buying Disney videos at a big box retailer such as the Virgin Megastore) to dynamic digital relationships with users (think Disney+), big changes are coming. It feels like big chunks of the $80 trillion economy are up for grabs for startups. While it seems obvious that we are moving from an ownership to a usage economy, I someti

As explained in a previous post, I am excited about the B2C opportunities that lie ahead of us in the coming years. Here some insights on how to build the foundation of a scalable SaaS freemium model. The following three points are the essence of any freemium model. An early stage B2C SaaS founder should be able to articulate his vision on all three of them while having the data to prove the first point: 1) How she/he is building an amazingly great product that user love 2) H

Mangrove recently led the Seed round of Sybel, the world's first platform for high-end audio content. With smart speaker adoption skyrocketing, tech giants such as Amazon and Google are making significant investments in voice betting that the technology is poised to become the next primary interface for consumers and businesses. As a firm we believe there is also a content play as consumers adapt to this new paradigm. Entertainment such as music or fun questions are already p

Most of you know that I am big fan of B2B SaaS. I absolutely love the business model and had the opportunity to work with and learn from some of Europe’s fastest growing SaaS businesses such as RedPoints in Spain or Walkme, Wix and Tailorbrands in Israel. Europe is becoming a power house in B2B SaaS. The continent has created many great SaaS businesses in the past with billion dollar outcomes such as Wix, Zendesk, SuccessFactors, Trusteer, AVG, Mimecast, Conduit and Fleetmati