Daniel Harari

When we crossed $1M in ARR, I realized closing more deals wasn’t helping us grow the way I expected. In the early days, we worked with a lot of early-stage startups. Deals closed fast but retention was a struggle. Clients disappeared. Not because of our product, but because their businesses didn’t survive. We kept adding new revenue, but it just covered up churn. It felt like running on a treadmill. Instead of moving forward, we were working harder to stay in the same place That’s when we stopped asking, “How do we close more?” and started asking: “Who should we close — and who should we stop chasing?” The answer came from tracking unit economics (properly). → Who are the happiest customers? Why? How do we find them? → Which channels bring leads that actually convert into real revenue? → Where is the sales cycle shortest and LTV highest? We went deeper than just LTV: CAC. We tracked by business model, size, region, persona (CFO vs CEO), even number of revenue streams, and legal entities. Then we overlaid that with retention curves. Which cohorts give us 100%+ dollar retention and stay for years — and which drop after a few months. That changed everything. Literally. We saw that we were trying to do everything for everyone, and it’s a bad strategy. No one is happy on the end: no us, no customers. So we focused. We started to say no to GTM channels, leads that we know our solution will be not the best one. And it was very scary. But it was the most right decision. We doubled down on the segments where: → retention was strongest → sales conversion rates were highest → customers love the product and can’t live without that In a few months we had leaner, more focused GTM motion. Soon 60% of our pipeline was with our ideal ICP. It took around 6 months to change everything: sales processes, improve products, rebuild GTM channels, etc. Faster sales cycles. A clearer product roadmap. Customers who actually love what we do. Here are 3 signs that you need to look at Unit Economics: → you hit your new revenue targets, but your growth is still not as fast as you want → you feels like you do everything with your product/service for everyone → you have high churn That’s why we built a super-simple, best-practice Unit Economics Calculator. It’s perfect for any company with recurring revenue (SaaS or services). It’s just a starting point, very high level, but it will help you see your numbers before going deeper into different cohorts. Write a comment & I’ll DM you the link.

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"We will create a European network of AI powered advanced medial screening centers." 🤷‍♂️ Huh? Better things to focus on would be killing the EU's AI Act, adopting energy abundance policies, making it easy to build new infrastructure in Europe, unifying Europe's capital markets, developing a singular focus to make Europe the best place to start and scale businesses, letting the private sector lead, and just getting out of the way in general. Hard truth time: Europe long ago lost AI and it's already lost quantum - even though most don't even realize that's even a thing yet. Europe has none of the ingredients to lead in compute. The goal now should be mass adoption to benefit its existing industries, and staying in the game in other sectors. Happy Monday!

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Founders raising in 2026: your legal spine determines whether you're fundable or forgotten. Use the rest of December to finalize the ownership, vesting, and IP agreements you've been procrastinating on. Because when VCs and Angels hear "we haven't documented that yet," we translate it to: • "The company might not control its own technology" • "Cofounder disputes could derail everything" • "This team hasn't matured past the garage stage" And even if you believe it's handled: • Can you produce the signed document? • Is every signature captured? • Do you track it in a system? If the answer is no, you're betting the company on a handshake. Run this audit before your next investor conversation. Confirm you have executed agreements for: ☐ Advisor compensation or equity grants? ☐ Cofounder ownership percentages/vesting terms? ☐ Cap table management in Carta, Pulley, or equivalent? ☐ Patent filings, proprietary data sets, unique technical architecture? ☐ IP assignments from every person who: • Developed software • Created algorithms • Engineered core systems? Warning signs I see repeatedly: 🚩 "We don't need that, we've known each other for years." 🚩 "Everyone on the team understands the arrangement." 🚩 "It's just an advisory position, we'll formalize it eventually." Address every gap before due diligence starts. The distance between "we trust each other" and "we have executed agreements" becomes a deal-killer the moment a $250k+ check is on the line. Start January with every document signed, tracked, and ready to share, (not scrambling to produce paperwork that should've been handled months ago) What’s the first gap you’ll close?

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Onewo reported FY25 inline core net profit of Rmb2.1bn, largely flattish yoy, alongside inline topline growth (at +3% yoy, incl. +9% for recurring segment and +7% for non-related DP's revenue) and inline margins. Management also highlighted that excluding the impact of related DP Vanke's business, core net profit amounted to Rmb1.7bn, up 11% yoy. Net profit recorded at Rmb694mn (-39% yoy), mainly due to higher credit impairment losses (Rmb1.2bn, vs. Rmb0.6bn in FY24), representing 22%/39% provision ratio against total/related DP's AR balance by end-25 (+9pp/+28pp yoy, vs. coverage POE peers of c.80%-90% against related DPs). With yoy strengthened OCF inflow at 0.8X of core net profit, inline with GSe, the company declared a high dividend of aggregate Rmb1.5 per share (above GSe), and implying dividend payout of c.80% against core net profit and 9% yield against the latest closing (high level among peers).

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Is SaaS dead? 💀 In my previous post I was talking about SaaS benchmarks (https://lnkd.in/ejG-SAUj), but one current trending subject is the market correction of public SaaS. The numbers are sobering 📉 The top 10 SaaS companies are down an average of 40% YoY. Some giants like HubSpot (-72%), Freshworks (-60%), and ServiceNow (-48%) have been hit particularly hard, while the S&P 500 maintained at +12%. But here's what the panic is missing 👇 ✅ Revenue is still growing 8-23% across these companies ✅ Margins remain strong (median EBITDA: 26%) ✅ These aren't failing businesses, they're profitable, growing enterprises trading at multi-year lows The bear case 🐻 AI agents may displace SaaS workflows, per-seat pricing under pressure as automation scales, margin risk in 2027+. The bull case 🐂 These incumbents aren't standing still. They're embedding AI into their platforms, not being replaced by it. Oracle, SAP, and Adobe aren't going away, they're adapting. The market is pricing in disruption risk. But is it overreacting? 🤔 What's your take? Is this a correction, emotion-driven behavior or the beginning of a deeper shift? 💬 #SaaS #TechValuations #AI #VentureCapital

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