The Farmer's Dog: A Consumer Subscription Case Study

All of these consumer brands end up being about two things, customer acquisition cost and lifetime

- Predictable revenue consumer SaaS economics with LTV of $120 at 2-3x of $40 CAC

(1) Viable business model - can you make decent profits on the unit economics? (note: this means that DTC winners will, by and large, be premium-priced, with decent basket sizes, with efficient cost structures, and have repeat business with a customer rather than just one-off transactions)

Earlier this year we met with our Limited Partners. Their top question was “will the AI transition destroy your existing cloud companies?”

We began with a strong default of “no.” The classic battle between startups and incumbents is a horse race between startups building distribution and incumbents building product. Can the young companies with coo... See more

The median bootstrapped B2B SaaS company currently spends around 90% of its annual recurring revenue on costs—25% on go-to-market strategy and execution, 24% on research and development, 15% on administrative and miscellaneous expenses, 13% on website hosting and implementation, and 10% on customer retention. Each of these categories of cost is now... See more