David Skok

B2B founders must then find a way to build repeatable, scalable and profitable growth before they are ready to step on the accelerator and grow at high speed. The nine phase process at the heart of Zero to 100 covers the major mistakes that David made personally as an entrepreneur, and what he sees startups making daily in his work as a VC investor and board member. In David’s words: “I can’t tell you how much pain and expense those mistakes cost me personally. Matrix Growth Academy – Zero to 100 was an educational event held in San Francisco, aimed at providing B2B Founders with a road-map for how to get from Zero to a repeatable, scalable and profitable growth process that would take them to $100m in revenue.

Margins may differ from margins on other pages because here companies are excluded based on their 2017 GAAP Revenue instead of 2017 ARR, which is consistent with previous years’ surveys Note: Numbers do not add due to the fact that medians were calculated for each metric separately and independently (1)YoY Revenue Growth compares against previous year’s revenue of the companies at the time Median includes ALRM, AMBR, APPF, APPN, APTI, ATHN, AYX, BCOV, BL, BNFT, BOX, BV, CARB, CLDR, CNVO, COUP, COVS, CRM, CSOD, CTCT, CVT, DMAN, DOMO, DWRE, ECOM, ELLI, EOPN, ET, FLTX, HUBS, KXS, LOGM, MB, MDB, MKTG, MKTO, MRIN, N, NEWR, NOW, OKTA, OPWR, PAYC, PCTY, PFPT, QLYS, RNG, RNOW, RP, RPD, SEND, SFSF, SHOP, SMAR, SPSC, SQI, TLEO, TWLO, TXTR, VEEV, VOCS, WDAY, WK, XTLY, YDLE, ZS and ZUO Total: 158, Month to month: 17, Less than 1 year: 13, 1 year: 73, 1.5 year: 25, 2 years: 11, 2.5 years: 5, 3+ years: 1 This year, we changed the methodology for collecting respondents’ gross dollar churn rates. Total: 158, Month to month: 17, Less than 1 year: 13, 1 year: 73, 1.5 year: 25, 2 years: 11, 2.5 years: 5, 3+ years: 1 As contract sizes increase, gross dollar churn trends downward, though the benefits are muted for the median company in each group above $5K ACV. Capital Requirements and Use of Debt Financing Respondents: 153, $5MM to $10MM: 36, $10MM to $20MM: 45, $20MM to $30MM: 16, $30MM to $50MM: 29, $50MM to $75MM: 17, >$75MM: 1 Capital consumption median is 1.5x (for companies over $5M ARR) and doesn’t show meaningful declines until companies reach scale above $75M ARR.

Note: Enterprise customers defined as primarily targeting customers with >1000 employees, Middle market as 100-999 employees, SMB as 20-100 employees and VSB as * Companies focused on mid-market, SMB & VSB generally grow much faster than those focused strictly on enterprise customers. * Larger companies rely more heavily on upsells & expansions (“land & expand”) strategies – although it’s rare to see even the largest receiving more than 50% of bookings from such strategies (1)Primary Mode of Distribution defined by determining the greatest contributor to new sales and confirming that it is at least a 30% point higher contributor than any other. Analyzed by median initial contract value, field sales dominates for companies with median deals over $50K. Inside sales strategies are most popular among companies with $1K-$25K median deal sizes. Analysis of field vs. inside sales in key crossover deal size tiers (2)The % change in ACV from existing customers, resulting only from the effect of churn, upsells / expansions and price increases For companies with mid-sized contracts, those who choose inside sales over field: (1) grow faster (47% vs. 28%), despite being larger ($20M ARR vs. $10M); (2) have greater annual gross dollar churn (14% vs. 10%), but similar net dollar retention (100% vs. 102%); yet (3) have lower blended CAC ratios ($1.06 vs. $1.34).