🔆 To fund or not to fund

🔆 To fund or not to fund

Imagine you were the SaaS CEO with this dilemma… what would you decide: Double down on funding… or not?

“I’ve got to be very conscious of the competitive situation at the moment. More competition is entering the market, kicking off what in the category creation world would be the two-year war to see who will win.”

This was one of the challenges we addressed in last week’s CEO Mastermind session.

The urgency
“The category leader takes 73% of the economics of the market. If we’re not that one, some VC will mint a winner”

What’s at stake
“We’ve been generating cash for the last 18 months – so don’t need the raise. But we cannot not be the minted winner.”

The problem
“Last year’s growth was 30%, this year it will be 130% – though VCs expect 300% YOY. It’s public sector led – a capped and slow market.”

Here’s the thing:
It’s a real dilemma: Betting on higher valuation and speed versus creating value and building a sustainable business around a meaningful mission.

Being a SaaS CEO, you can feel torn between two sub-optimal decisions. It’s where true leaders rise to the table – and make the right decision – whatever that is.

🤔 – Staying true to the mission vs. prioritizing (valuation) money
🤔 – Prioritizing rapid growth over building a sustainable (profitable) business
🤔 – fighting for dominance in a dense market vs. having a first-mover advantage in a new market
🤔 – Going all-in on one use case or placing your bets on multiple options.

The question for you to reflect upon:

Imagine the dynamics in your market would change overnight and create a category war: what would you double down on, and what would you be willing to give up?

 

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