This document discusses strategies for launching a startup and growing revenue from $0 to $10 million. It addresses questions like how many customers are needed at what price points to hit $10M in annual recurring revenue. It also covers topics like pricing models, identifying customer segments, purchasing processes, key metrics to track, and launch campaign ideas. The overall message is that startups need to focus on value-based pricing, understand their buyers, and leverage strategies like referrals, evangelism, and publicity to acquire and retain customers as they scale.

1. Launching Your Startup From
$0 to $10M in Revenue
Edith Yeung
General Partner
Race Capital
@edithyeung

2. Edith Yeung | Race Capital
Edith is a General Partner at Race Capital - an early-stage
Silicon Valley venture capital fund focusing on investing in
data infrastructure and enterprise software. She has
invested in over 50 startups including Agora.io (Nasdaq:
API), Lightyear/Stellar (valued $1.2B), Silk Labs (acquired
by Apple), Chirp (acquired by Apple), Fleksy (acquired by
Pinterest), Human (acquired by Mapbox), Solana, Oasis
Labs, Hooked, DayDayCook, AISense, and many more.
Prior to Race Capital, Edith was a partner at 500 Startups,
the world's most active early-stage fund and incubator
invested in Twilio, Credit Karma, Grab, and 2000 more
companies. Before 500, Edith was the general manager at
Dolphin Browser, a Sequoia-backed mobile browser with
over 150 million installs worldwide. Edith also worked with
many Fortune 500 companies such as Siebel, AMS, AT&T
Wireless, and Autodesk. She frequently speaks on China
and Silicon Valley technology and investment landscape.
She is also a frequent guest lecturer at Berkeley and
Stanford and commentator on BBC, CNBC, Wall Street
Journal, Bloomberg, SCMP, Techcrunch, etc.

3. Launching Your Startup
From $0 to $10M in Revenue

4. How Many Customers Do
You Need?

10. Path to $10 Million Revenue ARR
1 Customer X $10M per yea
r
10 Customer X $1M per yea
r
50 Customer X $200K per yea
r
100 Customer X $100K per yea
r
200 Customer X $50K per yea
r
1000 Customer X $10K per yea
r
10000 Customer X $1K per yea
r

11. What much should you
charge?

16. Once upon a time, software was sold by perpetual license...

17. Competitor-Based Pricing is not going to work…

18. Cost-Based Pricing is not going to work…

19. It’s All About Value-Based Pricing

20. Subscription-Based Pricing

21. Only pay for the compute resources you use at per-second granularity with simple pay-as-you-go,
or discounted usage commitment pricing options.
Usage-Based Pricing

22. Usage-Based Pricing

23. Only pay based on the actual performance of your product
Performance-Based Pricing

24. Foot-in-the-door Price DOES NOT Need to be Forever Price

25. Path to $10 Million Revenue ARR
1 Customer X $10M per yea
r
10 Customer X $1M per yea
r
50 Customer X $200K per yea
r
100 Customer X $100K per yea
r
200 Customer X $50K per yea
r
1000 Customer X $10K per yea
r
10000 Customer X $1K per yea
r

26. Who is your customer?

28. Happy Engineers

29. Grumpy bosses

31. Path to $10 Million Revenue ARR
1 Customer X $10M per yea
r
10 Customer X $1M per yea
r
50 Customer X $200K per yea
r
100 Customer X $100K per yea
r
200 Customer X $50K per yea
r
1000 Customer X $10K per yea
r
10000 Customer X $1K per yea
r

32. How do they buy?

35. When B2B buyers spend only 17% of that time meeting.
When buyers are comparing multiple choices‚ the amount
of time spent with anyone sales rep maybe only 5% or 6%.

39. 8 Metrics You Must Track
From $0 to $10M in Revenue

40. 1 - Customer Acquisition Cost (CAC)

42. 2 - Customer Lifetime Value (LTV)

43. 3 - Churn Rate - MRR (Beginning of the month) / MRR (End of the Month)

44. 4 - Referral Rate

45. 5 - Monthly Recurring Revenue (MRR)

46. 6 - Annual Recurring Revenue (ARR)

47. 7- Cash Burn Rate

48. 8- Cash

49. Path to $10 Million Revenue ARR
1 Customer X $10M per yea
r
10 Customer X $1M per yea
r
50 Customer X $200K per yea
r
100 Customer X $100K per yea
r
200 Customer X $50K per yea
r
1000 Customer X $10K per yea
r
10000 Customer X $1K per yea
r

50. 5 SaaS Launch Ideas +
Campaigns
From $0 to $10M in Revenue

51. 1 - Dropbox Referrals Program Increased Signups by 60%

52. 2 - Databricks Team Made Spark Irresistible

53. 3 - Slack Relies on Word of Mouth, SEO and Storytelling

54. 4 - Canva Invites Guy Kawasaki as Brand Evangelist

55. 5 - Salesforce Hired Fake Protesters to Disrupt Siebel conference

56. Want more?
• Follow me on Twitter @edithyeung
• Join my weekly funding newsletter https://www.silicon.news/

57. THANK YOU