"75% of Boston startups made a return to or exceeded their pre-crises MoM revenue growth rate in just 6 months time."
In May 2020, Venture Lane launched the Recession Readiness Survey to learn how COVID-19 impacted Boston startups and how Founders were preparing for the road ahead. We learned that initial impact on revenue growth was severe, but Founders were planning to tighten their belts on cash burn and make a return to pre-crisis growth rates within 6 months.
In Oct 2020, we launched the Boston Startup Growth Survey with two goals in mind.
Determine whether Boston startups returned to pre-crisis growth rates.
Crowdsource the most effective strategies for driving growth - lead generation, conversion, customer retention, team motivation.
75% of Boston startups made a return to or exceeded their pre-crises MoM revenue growth rates in 6 months time.
Startups skillfully adapted their marketing plans to capture a flurry of top-of-funnel activity.
Conversion was a bit trickier with sales cycles ticking up in length, but startups in most industries are now generating double digit MoM revenue growth.
We're on a mission to create gold standard reporting for Boston's seed-stage startups. Grateful to have world class partners who share our vision!
We had 51 startups participating. Here's a little about them...
100% provide software powered solutions
75% are B2B SaaS
63% are funded, from Pre-Seed to Series A
Top industries represented on the right
In May 2020, 50% of startups planned to raise in the next 6 months. As of Sep 2020, only 33% had successfully closed a round.
Not only that, roughly one third of the rounds closed in the last 6 months were bridge funding - i.e. not planned.
All this boils down to... only half of the startups who planned to raise 6 months ago did wind up raising. Have no fear - better news lies ahead!
Lead generation was the most 'pivoted' strategy of the last 6 months, more so than sales strategy, product roadmap, target market, etc.
Change was a good thing, because startups in 13 of 15 industries are generating more monthly leads than they were before the crisis.
Founders ranked their most effective lead generation strategies to the right.
75% of startups have a MoM revenue growth rate equal to or higher than their pre-crisis rate.
Startups in 7 of 15 industries have grown MRR by triple digit percentages in the same timespan.
Startups in the other 8 industries have had less success and a few may continue to face headwinds.
No surprises here. Startups worked primarily in the office before COVID-19 and from home during COVID-19.
Once a vaccine is available, startups plan to take a hybrid approach with team members both in-office and WFH.
Venture Lane can help with that transition! Check out how we're helping teams go hybrid below.
Venture Lane launched a Hybrid Membership for teams working from home + in office. Check out the member benefits!
Boston Mailing Address + Workspace 2 days/wk
Access to Mentor Network & Impact Program
$400K in AWS credit & add'l provider perks