A proven operating model that enables your company to achieve sustained growth.

1. Go-to-Market Fit
ACHIEVING SUSTAINED GROWTH
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .D A V I D S T E I N

2. Leaders Fund is a $100M B2B SaaS focused fund,
investing in Series A and B companies.
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

3. Experience
David Stein
Co-Founder & Managing Partner
@ d s t e i n
Co-Founder of Leaders Fund
1
2
3
Co-Founder of Workbrain, bought by Infor
Scaled to $100M+ in annual revenue in 6 years
Co-Founder of Rypple, bought by Salesforce
Created category of enterprise social performance
$100M fund co-founded w/ Steve Debacco & Gideon Hayden
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

4. CONGRATS!
YOU’V E A C H IEV ED
PRODUC T/MA RKET F IT!
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

5. What does product market fit look like?
Customers are paying
for and recommending
your solution
Customers are
increasing their
product usage
Customers are
generating an ROI
Customers are
renewing
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

6. How did you do it?
Founding team of
A-players
Deep domain
expertise
Customer centric
product design
Founder-led,
tenacious sales effort
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

7. Few companies raise money
beyond the seed or A…
Source: Mattermark
0%
25%
50%
75%
100%
SEED A B C D E F
SERIES
%OFCOMPANIESWHICHRAISEDATSERIES
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

8. and even fewer make the transition to a big business
STAGE
ARR
$100M+
$0.1M
$0.5M
$1.5M
$5M+
Early Traction Product Market Fit Sustained GrowthGo to Market Fit
SMALL BIG
?
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

9. HOW DO YOU ACHIEVE
SUSTAINED GROWTH?
Go to Market Fit
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

10. What sustained growth looks like
50%
50-100%
100%+
CARR
( C O N T R A C T E D A N N U A L
R E C U R R I N G R E V E N U E )
24
12-24
<12
CAC PAYBACK
( C O S T O F A C Q U I S T I O N
P A Y B A C K - M O N T H S )
1-3%
<1%
N e t N e ga ti ve
CHURN
( M O N T H L Y )
3x
3-5x
5x+
CLTV/CAC
Source: BVP State of the cloud report 2016
( L I F E T I M E V A L U E /
C O S T O F A C Q U I S I T I O N )
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

11. Companies that have nailed go-to-market fit are…
ASP
User/account
# referrals
# advocates
NPS
GROWING:
Time to sell
Time to deploy
Time to value
Time to rep ramp
Supporttime
COMPRESSING:
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

12. What are the blockers to achieving sustained growth?
Market size
too small
Ramping sales/
marketing too early
Unstructured
customer success
Lacks a winning
culture
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

13. 1. RECRUITING
2. MARKETING
3. SALES
4. PRODUCT
6. CULTURE
5. CUSTOMERS
Go to Market Fit is an operating system that
ensures sustained growth
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

14. Every time you double in size,
refine the process for each function
2x
2x
2x
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

15. Establishing the GTMF Operating System
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

16. 1. Recruiting
'A' talent attracts
'A' talent
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

17. Process
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
Recruiting is E-team led,
and hires are aligned
with your mission
Build a systematic
process, metrics to
measure, org structure
Identify needs 12
months in advance
Hire capability over
competency
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

18. Metrics that matter
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
IDENTIFY Source leads (target referrals)
SIGN Close leads quickly, time is the enemy (lead to hire)
ONBOARD Time to productivity
PLAN Key roles, 12 months out
PRIORITIZE Experienced, team leaders first
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

19. 2. Marketing
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
KEY
ATTRIBUTES
3. LEADS
Testing/executing multiple
lead channels
2. TEAM
An experienced leader
is in place
4. VALUE
Moving from touting
features to outcomes
1. OFFER
Value prop appeals to
“early majority”
5. SPREAD
Recruiting/engaging
customer advocates
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

20. Metrics that matter
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
METRICS
CHANNELS
Overall
Content
Paid
SEO
SEM
Outbound
CAC LTV GM% ASP Payback LTV:CAC Churn Sales Cycle
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

21. 3. Sales
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
KEY
ATTRIBUTES
3. PLAYBOOK
Repeatable
approach to selling
2. STRATEGY
Selling model,
segments defined
4. PRICING
Consistent, value-based
1. ONBOARDING
Repeatable process to
get “smart”
5. WIN
Working as a team
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

22. Refine sales approach every 2X
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
ADJUST
MEASURE
HIRE
TRAIN
RAMP
1 REP
2 REPS
4 REPS
8 REPS
16 REPS
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

23. Metrics that matter
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
RAMP TIME Time to ramp, time to first sale
PRODUCTIVITY $/rep, max productivity
ATTAINMENT Quota attainment by rep, MoM, QoQ
EFFICIENCY Funnel/channel analysis, CAC ratio
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

24. 4. Product – build a valuable product to delight users
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
VISION ROADMAP PRIORITIZE MEASURE KILL
Product leader with
clear plan for the
future
Balancing
customer’s asks with
differentiators
Work on capabilities
that decrease time
to value & be
ruthless
All behaviours and
usage
Sunset features/
customers no longer
of use…
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

25. Metrics that matter
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
CADENCE Predictable dev cycles, hitting deadlines
USAGE Active user trends, usage of features
BEHAVIORS User interviews, screen capture
SIMPLIFY Time to launch, time to go live, time to use
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

26. 5. Customer success
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
Customer
success
Asking for a renewal
once a year=
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

27. Playbook
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
Focus on
outputs, not
activities
ACHIEVE INITIAL
VALUE QUICKLY
ONBOARD
PLAN
OUTCOMES
RENEW &
UPSELL
ACHIEVE LONGER
TERM VALUE
REFINE BEST
PRACTICES
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

28. Metrics that matter
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
DEPLOY Time to go live
LAUNCH Time to value
EMBED # integrations, # monthly active users
CONSULT # touchpoints, ROI
UNLEASH # of advocates
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

29. 6. Culture
RECRUITING MARKETING SALES PRODUCT CUSTOMERS CULTURE
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

30. Summary: Building a GTMF system is essential to succeed
GTM operating system, optimized for speed
Depth in leadership and operating team
Build with a "franchise-model" mindset
Whole product solution delivered
1
2
3
4
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

31. Remember: you are winning if you...
ASP
User/account
# referrals
# advocates
NPS
GROW:
Time to sell
Time to deploy
Time to value
Time to rep ramp
Supporttime
COMPRESS:
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .

32. Thank You!
C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C .