💫 Ramplify: March Milestones
The Fundraising Blueprint, ARR Mirage, Liquidity is here: Google's $32B M&A deal
👋 Is Early ARR just a mirage? by Taryn Pieterse
Is early ARR just a mirage?
VC’s are the worst offenders! The signal of signing your first paying customer and having revenue ticking up quickly and consistently is a surefire way to get any VC to take notice. This is only further emphasised by the number of charts circling in the last few weeks on the speed of startups hitting $100m ARR. But astute observers will notice that the clock only started when they hit $1m ARR (albeit noting Cursor had a heroic journey to $1m ARR also).
But let's not get distracted. That path isn’t for everyone, and there are plenty of incredible businesses that took much longer!
In the age of AI, some startups are racing to impressive revenue numbers but are too focused on the next $1 and lose sight of what makes a product indispensable. Real product-market fit is about long-term stickiness, deep user love, and building something that solves a fundamental problem better than anything else out there.
We’ve been thinking a lot about how early revenue can distract founders from identifying real PMF. For many fast-growing AI startups, ARR gives a false illusion of PMF, but with customers churning as fast as they sign up and competitors nipping at their heels with similar offerings, unicorn status becomes nothing but a mirage. Don’t get me wrong - I do love Revenue; however, I push you to dig in deeper to validate the customer love.
A few indicators of PMF that we’re paying attention to:
Product Usage Data: Users are engaging with key features frequently and consistently? This can indicate that the core value prop is hitting home
Customers Investment: Convincing early stage design partners to spend the time to work with you in the design stage or users willing to put time and effort into customizing or integrating your product
Customer Complaints or Feature Requests: If customers are giving you honest feedback it means they actually care about your product and want to see it improve, they will spend the time asking for features rather than looking for alternative solutions.
Pull from the Market: Customers actively seeking out the product without a ton of marketing spend
A great piece from First Round on some non-obvious signs of early startup traction direct from founders here.
At Rampersand, we’re on the lookout for the startups that go beyond just the numbers—the ones that show a real understanding of their users, iterate towards genuine solutions, and think long-term from day one. If you’re one of those founders, we would love to chat.
🗞️ Tech News:
Liquidity is happening. After the CoreWeave’s and Klarna’s documents have been lodged to go public. Google’s Record-Breaking Wiz Acquisition: AI-Driven Cloud Security. Google has completed its largest-ever cybersecurity deal by acquiring Wiz for $32 billion, a startup that uses AI to safeguard cloud environments. The move underscores Google’s commitment to bolstering its cloud offerings and highlights a growing focus on AI-driven solutions for enterprise security.
“With Wiz, Google aims to automate threat detection and response across sprawling cloud infrastructures, ensuring customers can move faster without compromising on security.”
A great article for Looking Beyond the Google and Wiz Deal.
Carta’s Startup Compensation Report (H2 2024). Carta’s latest data reveals shifts in salary ranges, equity offerings, and remote vs. on-site pay across various startup stages. The report highlights increased competition for top talent, driving more creative compensation packages to attract and retain employees in a changing market.
“With greater investor scrutiny, startups are rethinking everything from base salaries to equity grants, striving to balance runway with the need to recruit exceptional teams.”
A16Z’s Deep Dive into MCP and the Future of AI Tooling. Andreessen Horowitz explores MCP (Model-Context- Protocol) as the next step in AI development, emphasizing how these platforms streamline data pipelines, model deployment, and continuous updates. The post highlights emerging trends like decentralized data sources and modular AI stacks, which promise faster iteration and broader industry adoption.
🛠️ How to Startup:
Nikita Bier on the Critical Role of a Full-Time Designer. Nikita Bier argues that a dedicated designer is essential for real-time product ideation, user discovery, and team alignment. He emphasises that visualising navigation, interactions, and copy in high fidelity is what ultimately shapes a product’s success.
“At the end of day, products live and die in the pixels: it’s what the users see and tap.”
AE/SDR Early Pipeline: Why It Matters. Ophelia Brown, founder of Blossom Capital, underscores the importance of aligning account executives and SDRs early to build a robust sales pipeline. She highlights how shared ownership of prospecting can shorten deal cycles and strengthen customer relationships from day one.
“When SDRs and AEs collaborate on pipeline generation, it’s not just about leads—it’s about setting the stage for long-term customer success.”
The Fundraising Blueprint - By Abhishek Maran. Abhishek Maran, an investor here at Rampersand, publisher of Superfluid, and Forbes 30 under 30, now has a new Amazon best-seller title as he announces his new book, The Fundraising Blueprint, published by Encour Press. Written for founders and aspiring entrepreneurs, it exposes the hidden nuances of raising capital, from investor psychology to market dynamics, offering practical frameworks and templates to level the playing field in venture capital.
“The most successful founders aren’t just simply building great companies — they’re masters of the fundraising game.”
👕 VC in Australia/New Zealand:
Aussie VC’s on the current state of the union. Australia’s top venture capitalists say the funding “winter” is over, with $4 billion invested in 2024 and more IPOs expected in 2025—particularly for AI-native start-ups, where demand remains high. While many VCs deny an AI bubble, most acknowledge valuations are elevated but justified by real technological breakthroughs. Public markets are showing signs of reopening, though scepticism remains about ASX’s viability for tech listings. Canva’s anticipated IPO is seen as a potential turning point for Australian tech. The VC community is cautiously optimistic about Donald Trump’s pro-tech stance, though wary of volatility. There’s growing consensus that superannuation funds should play a bigger role in VC, with regulatory tweaks needed to unlock domestic capital. Global investors are also returning, drawn by Australia’s strong start-up track record and better value compared to US markets.
Young Venture Capitalists Get Creative. A new generation of VCs is breaking the mould, forging innovative relationships with founders while navigating a traditionally cutthroat industry. This feature highlights how authenticity, collaborative networks, and a willingness to take risks are reshaping early-stage investing in Australia.
“Venture capital is one of the most talked about, most desired, but least understood asset classes.”
🤩 Portfolio News
Restoke AI Intelligence Launch. Restoke launched its new AI-powered Restaurant Intelligence features last week. The new AI features put restaurant owners back in the driver's seat, replacing spreadsheets, guesswork, and wasted time.
✨ Business Insights takes your operational data and surfaces practical solutions to put money back in your pocket.
🚀 Copilot is your handy assistant, ready with instant answers tailored to your venue.
📊 Smart Reports break down your numbers into key takeaways so you can act faster.
This marks a breakthrough in how restaurant owners and operators interact with their data. Restoke rapidly expands across the U.S., delivering measurable impact for hospitality venues. Take New York-based East Coast Street Tacos, a long-time fan favourite, for example—they increased revenue by 50% after using Restoke to refine pricing with AI, automate daily operations, and gain real-time inventory control across locations. If you're part of a U.S. hospitality venue (or know one), now’s the time to reach out.
Goterra launches new sites. GoTerra has launched a world-first trial in residential food waste management through a partnership with the City of Sydney. Launching a new site in Alexandria with Bingo Industries, GoTerra’s Black Solider Fly Larvae have already eaten through 90 tons of waste in just a few months. Watch the coverage on 10 News below:
(Founder Olympia Yarger launching their new site)
💼 Portfolio Job Board
Research Director - EV Charger Modelling at Orkestra
Location and Type: Melbourne, Australia (Hybrid) & full-time
What they do: Orkestra Technologies is an Australian software startup revolutionising the deployment of energy projects. Their SaaS software helps energy teams deploy and operate new energy projects, such as solar, batteries, and electric vehicles, in the C&I customer segment.
What you’ll do: As an EV Charger Modelling Director, you’ll be at the heart of a project that aims to unlock investment in Australia’s EV charging infrastructure. Orkestra has been funded by ARENA to conduct research that determines the key drivers for EV charger demand, EV charger site identification and ways to improve EV charger financial performance.
Senior Customer Success Manager at Sapia
Location and Type: London, UK (Hybrid)
What they do: Sapia.AI has built the world’s most inclusive and intelligent human-centric talent solution to innovate the hiring process and disrupt broken practices, especially in high-volume recruitment. They believe every candidate deserves a fair chance at getting a job and that organisations increasingly care about interrupting bias in hiring and promotion.
What you’ll do: As the Senior Customer Success Manager, you will help drive strong customer outcomes and growth for Sapia’s AI solutions. Sapia has grown significantly in the UK over the last year, with multiple enterprise customers, and you will be responsible for handling these accounts. You will lead enterprise deployments and change management initiatives.
Do you have a job you’d like us to promote? Add it to Hatch and share the link with us.
See all jobs across the Rampersand Portfolio.
🌏 Rampersand Travel Diary:
Canberra: Andrew Poesaste will be in Canberra for the Canberra Innovation Network on 2 April.
🎉 Upcoming Events:
Sydney: Join us on April 1st for the launch of "The Fundraising Blueprint," a must-read for first-time founders embarking on their fundraising journey. Hosted by Abhi Maran and others, this event takes place at Soultrap Bar in Surry Hills, NSW. Your $20 ticket includes a copy of the book, pizza, and drinks. Connect with fellow founders, VCs, and startup ecosystem leaders. Secure your spot today!
Sydney: Join us at SmartCompany's Growth Summit on April 1st in Sydney. Our partner, Andrew Poesaste, will participate in the "Powering Women-Led Startups" panel. This session will delve into strategies to bridge the gender investment gap in women-led startups and feature insights from founders and funders.
Sydney: Pitchapalooza, Australia's premier AI pitch competition, is underway, with semi-final rounds scheduled for this week. Our very own Taryn Pieterse will be there for the Tuesday and Thursday sessions. The excitement culminates in the Grand Final on April 10, 2025, at Google's Sydney HQ, where the top 12 startups will compete for the title. Don't miss this opportunity to witness Australia's best AI innovators in action.
Thanks for being part of the Rampersand Community! You can stay updated with even more news and info on our LinkedIn and X/Twitter pages.