At SaaStr Miami, former Founder’s Fund Partner and CRO of Brex Sam Blond — host of the SaaStr CRO Confidential Podcast — had a discussion with SaaStr CEO and founder Jason Lemkin about finding success as a SaaS company in 2024. They touched on Sam’s experiences at Founders Fund, the 2024 playbook, hiring and motivating sales teams, and answered audience questions.
Sam recently completed 18 months at Founders Fund, joining in mid-to-late 2022. Coming from a background of high-growth companies like EchoSign, he had a unique perspective on companies raising money from top VCs. He realized that VCs have high bars for founder quality, business stage, and growth metrics.
Sam discovered that Founders Fund had specific investment preferences and a rigorous filter, making it challenging for most companies to secure funding. This led to the realization that even exceptional companies may struggle to meet the fund’s criteria.
Insights from Partnering with Founders Fund
Sam found that nuances in deal-making, differences in VC preferences, and high investment standards made it crucial for founders to engage with multiple investors, especially if they were not in a popular category. The bar for funding was set so high that even impressive companies faced difficulties in securing investments.
In the world of SaaS, the surge in growth during 2021 lowered the venture bar, leading to an influx of companies in various sectors. The landscape became confusing, and the current standards are still uncertain.
Applying Classic Strategies in 2024
In 2024, there is a focus on efficiency metrics alongside growth due to reduced funding availability. Companies are encouraged to maximize resources wisely, avoiding past trends of overspending on marketing and overhiring in sales without tangible results.
- Marketers must move away from excessive ad spend and focus on impactful campaigns.
- Sales teams should avoid over-hiring and prioritize productivity in a challenging market.
Today, businesses need to be resourceful, creative, and accountable for sustainable growth.
Deciding Between Scaling Staff or Quotas
The decision to expand the sales team depends on demand and efficiency. Doubling headcount should align with meeting existing demand, not just to increase numbers. It’s crucial to assess if current sales reps are fully utilizing their capacity before considering additional hiring.
Strategic discussions with the sales team about alternatives to hiring more staff, such as increasing quotas, can provide valuable insights into timing and necessity for team expansion.
Approaching New Hires in a Budget-Conscious Environment
In an era of restrained budgets, hiring new heads of sales or marketing may pose challenges in assembling a full team immediately. Initiating clear communication about budget constraints and outlining prerequisites for future team building can help manage expectations effectively.
Ultimately, founders hold the responsibility in navigating such hiring decisions and setting feasible milestones for team expansion.
Evaluating Sales Team Success
Measuring the performance of a sales rep involves objective metrics such as revenue generation and subjective criteria like effort and attitude. Striking a balance between performance, effort, and attitude is essential in assessing a rep’s success and determining the need for adjustment.
Considering Fractional Hires
While fractional hires may seem cost-effective, their value lies in expertise and strategic support during transitional phases. Hiring the right fractional professionals can add substantial value to a business, outweighing the initial investment.
