Is YC Worth It for a B2B SaaS with $8.5k MRR and Linear Growth?
My startup acquired 87 customer companies and reached $8.5k MRR recently. We have around 4-5 new paying customers every week, and 13% monthly churn rate. However, the new growth rate has been linear for 2 months.
We raised pre-seed funding last July, and have 18+ month runway as of now. This can be decreased if we hire more people and spend more on marketing.
Would YC be worth it for us? We are considering next fundraising or YC to accelerate our growth.
Your problem isn’t lack of marketing, it is the false assumption that you have product market fit. With 13% monthly churn customers are telling you they either don’t really care about the problem you solve or they don’t value your solution. Cut your burn to extend your runway so you can have enough time to figure out why your product isn’t sticky enough. You can’t, won’t and shouldn’t raise funding till you solve this.
13% monthly churn?? You are on track for replacing all your customers in under 1 year. Effectively you have no recurring revenue at all. Something is seriously wrong if B2B customers are leaving that fast, and you need to find out what and fix it fast.
I would plug that hole before thinking about scaling.
Thank you all for the excellent advice. I understand that we need to improve our business and deliver more value to our ICPs before scale.
The short answer is it depends.
Insights you may gain at YC may help you either pivot or improve the current SaaS you have either from an offering or operational perspective.
Most importantly folow your gut feeling because that's what got you to $8.5k MRR. If there is even a 5% chance to improve your product or increase your revenue or both, you should take it. Define your success metric and proceed accordingly.
Hope this helps you :)
You acquired 87 customers and are getting 5 new month but losing 10 customers. The question is how many new customers are leaving vs part of the 87 batch. They are going to wonder if your new customer pipeline is scalable.
You should not need customers to get accepted. If you do then i’m not sure i understand what YC is about.
* last July -> July, 2023