What does the rising turnover of a hyper growth SaaS company (post $20M in funding) tell you as an investor/board member who led the last round?

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JASON LEMKIN

Nothing.

People make too much of “Everyone’s leaving Company XYZ”.

Yes, sometimes it’s true everyone is leaving.

But more likely, the company is just going through changes.  Not everyone goes the distance from $o to $100m in ARR.  New VPs come in.  Things change.  People go off to start their own companies.  The go off to get a management role they can’t get at their current gig.

Turnover should go up, and as companies grow faster, they go through different phases faster.

Don’t take any comfort when you hear “everyone is leaving” your competitor IF they are post $5-$10m in ARR. 

Probably, it’s just part of the change of the seasons.

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Published on September 1, 2015
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