Christopher Janz of Point Nine Capital created the SaaS napkin in 2016. This post shows how founders have raised cash in the last 6 years. View raw data.

Round size

Unsurprisingly, round sizes have expanded and will taper down in 2022. In 2016, pre-seed rounds were $200k to $500k; currently, they're $1-$2m. Despite the macroeconomic scenario, Series A have expanded from $3m to $12m in 2016 to $6m and $18m in 2022.

Valuation

There are hints that valuations are rebounding this year. Pre-seed valuations in 2022 are $12m from $3m in 2016, and Series B prices are $270m from $100m in 2016.

Compared to public SaaS multiples, Series B valuations more closely reflect the market, but Seed and Series A prices seem to be inflated regardless of the market.

I'd like to know how each annual cohort performed for investors, based on the year they invested and the valuations. I can't access this information.

ARR

Seed firms' ARR forecasts have risen from $0 to $0.6m to $0 to $1m. 2016 expected $1.2m to $3m, 2021 $0.5m to $4m, and this year $0.5m to $2.5m, suggesting that Series A firms may raise with less ARR today. Series B minutes fell from $4.2m to $3m.

Capitalization Rate

2022 is the year that VCs start discussing capital efficiency in portfolio meetings. Given the economic shift in the markets and the stealthy VC meltdown, it's not surprising. Christopher Janz added capital efficiency to the SaaS Napkin as a new statistic for Series A (3.5x) and Series B. (2.5x). Your investors must live under a rock if they haven't asked about capital efficiency. If you're unsure:

The Capital Efficiency Ratio is the ratio of how much a company has spent growing revenue and how much they’re receiving in return. It is the broadest measure of company effectiveness in generating ARR

What next?

No one knows what's next, including me. All startup and growing enterprises around me are tightening their belts and extending their runways in anticipation of a difficult fundraising ride. If you're wanting to raise money but can wait, wait till the market is more stable and access to money is easier.

In the early 2000s, I began developing SaaS. I helped launch an internet fax service that delivered faxes to email inboxes. Back then, it saved consumers money and made the procedure easier.

Google AdWords was young then. Anyone might establish a new website, spend a few hundred dollars on keywords, and see dozens of new paying clients every day. That's how we launched our new SaaS, and these clients stayed for years. Our early ROI was sky-high.

Changing times

The situation changed dramatically after 15 years. Our paid advertising cost $200-$300 for every new customer. Paid advertising takes three to four years to repay.

Fortunately, we still had tens of thousands of loyal clients. Good organic rankings gave us new business. We needed less sponsored traffic to run a profitable SaaS firm.

Is it still possible?

Since selling our internet fax firm, I've dreamed about starting a SaaS company. One I could construct as a lone developer and progressively grow a dedicated customer base, as I did before in a small team.

It seemed impossible to me. Solo startups couldn't afford paid advertising. SEO was tough. Even the worst SaaS startup ideas attracted VC funding. How could I compete with startups that could hire great talent and didn't need to make money for years (or ever)?

The One and Only Way to Learn

After years of talking myself out of SaaS startup ideas, I decided to develop and launch one. I needed to know if a solitary developer may create a SaaS app in 2022.

Thus, I did. I invented webwriter.ai, an AI-powered writing tool for website content, from hero section headlines to blog posts, this year. I soft-launched an MVP in July.

Considering the Issue

Now that I've developed my own fully capable SaaS app for site builders and developers, I wonder if it's still possible. Can webwriter.ai be successful?

I know webwriter.ai's proposal is viable because Jasper.ai and Grammarly are also AI-powered writing tools. With competition comes validation.

To Win, Differentiate

To compete with well-funded established brands, distinguish to stand out to a portion of the market. So I can speak directly to a target user, unlike larger competition.

I created webwriter.ai to help web builders and designers produce web content rapidly. This may be enough differentiation for now.

Budget-Friendly Promotion

When paid search isn't an option, we get inventive. There are more tools than ever to promote a new website.

• Organic Results

• on social media (Twitter, Instagram, TikTok, LinkedIn)

• Marketing with content that is compelling

• Link Creation

• Listings in directories

• references made in blog articles and on other websites

• Forum entries

The Beginning of the Journey

As I've labored to construct my software, I've pondered a new mantra. Not sure where that originated from, but I like it. I'll live by it and teach my kids:

“Do the work.”

People-first update.

Every Google upgrade causes website owners to panic.

Some have just recovered from previous algorithm tweaks and resumed content development.

If you follow Google's Webmaster rules, you shouldn't fear its adjustments.

Everyone has a view of them. Miscommunication and confusion result.

Now, for some (hopefully) exciting news.

Google tweeted on August 18, 2022 about a fresh content update.

This change is another Google effort to remove low-quality, repetitive, and AI-generated content.

The algorithm generates and analyzes search results, not humans.

Google spends a lot to teach its algorithm what searchers want. Intent isn't always clear.

Google's content update aims to:

“… ensure people see more original, helpful content written by people, for people, in search results.”

Isn't it a noble goal?

However, what does it mean for content creators and website owners?

How can you ensure you’re creating content that will be successful after the updates roll out?

Let's first define people-first content.

What does "people-first-content" mean?

If asked, I'd say information written to answer queries and solve problems.

Like others, I read it from the term.

Content creators and marketers disagree. They need more information to follow recommendations.

Google gives explicit instructions for creating people-first content.

According to Google, if you answer yes to the following questions, you have a people-first attitude.

1. Do you have customers who might find your content useful if they contacted you directly?

2. Does your content show the breadth of your knowledge?

3. Do you have a niche or a focus for your website?

4. After reading your content, will readers learn something new to aid them in achieving their goals?

5. Are readers happy after reading your content?

6. Have you been adhering to Google's fundamental updates and product reviews?

As an SEO writer, I'm not scared.

I’ve been following these rules consciously while creating content for my website. That’s why it’s been steadily growing despite me publishing just one or two stories a month.

If you avoid AI-generated text and redundant, shallow material, your website won't suffer.

If you use unscrupulous methods to boost your website's traffic, including link buying or keyword stuffing, stop. Google is getting smarter and will find and punish your site eventually.

For those who say, “SEO is no longer working,” I dedicated the whole paragraph below.

This does not imply that SEO is obsolete.

Google:

“People-first content creators focus on creating satisfying content, while also utilizing SEO best practices to bring searchers additional value.”

The official helpful content update page lists two people-first content components:

• meeting user needs

• best practices for SEO

Always read official guidelines, not unsolicited suggestions.

SEO will work till search engines die.

How to use the update

Google said the changes will arrive in August 2022.

They pledged to post updates on Google's search ranking updates page.

Google also tweets this info. If you haven't followed it already, I recommend it.

Ranking adjustments could take two weeks and will affect English searches internationally initially.

Google affirmed plans to extend to other languages.

If you own a website, monitor your rankings and traffic to see if it's affected.

Unleash the power of persuasion and captivate your audience with compelling headlines.

As the old adage goes, "You never get a second chance to make a first impression."

In the world of content creation and social ads, headlines and titles play a critical role in making that first impression.

A well-crafted headline can make the difference between an article being read or ignored, a video being clicked on or bypassed, or a product being purchased or passed over.

To make an impact with your headlines, mastering the art of rhetoric is essential. In this post, we'll explore various rhetorical devices and techniques that can help you create headlines that captivate your audience and drive engagement.

tl;dr : Headline Magician will help you craft the ultimate headline titles powered by rhetoric devices

Example with a high-end luxury organic zero-waste skincare brand

✍️ The Power of Alliteration

Alliteration is the repetition of the same consonant sound at the beginning of words in close proximity. This rhetorical device lends itself well to headlines, as it creates a memorable, rhythmic quality that can catch a reader's attention.

By using alliteration, you can make your headlines more engaging and easier to remember.

Examples:

"Crafting Compelling Content: A Comprehensive Course"

"Mastering the Art of Memorable Marketing"

🔁 The Appeal of Anaphora

Anaphora is the repetition of a word or phrase at the beginning of successive clauses. This rhetorical device emphasizes a particular idea or theme, making it more memorable and persuasive.

In headlines, anaphora can be used to create a sense of unity and coherence, which can draw readers in and pique their interest.

Examples:

"Create, Curate, Captivate: Your Guide to Social Media Success"

"Innovation, Inspiration, and Insight: The Future of AI"

🔄 The Intrigue of Inversion

Inversion is a rhetorical device where the normal order of words is reversed, often to create an emphasis or achieve a specific effect.

In headlines, inversion can generate curiosity and surprise, compelling readers to explore further.

Examples:

"Beneath the Surface: A Deep Dive into Ocean Conservation"

"Beyond the Stars: The Quest for Extraterrestrial Life"

⚖️ The Persuasive Power of Parallelism

Parallelism is a rhetorical device that involves using similar grammatical structures or patterns to create a sense of balance and symmetry.

In headlines, parallelism can make your message more memorable and impactful, as it creates a pleasing rhythm and flow that can resonate with readers.

Examples:

"Eat Well, Live Well, Be Well: The Ultimate Guide to Wellness"

"Learn, Lead, and Launch: A Blueprint for Entrepreneurial Success"

⏭️ The Emphasis of Ellipsis

Ellipsis is the omission of words, typically indicated by three periods (...), which suggests that there is more to the story.

In headlines, ellipses can create a sense of mystery and intrigue, enticing readers to click and discover what lies behind the headline.

Examples:

"The Secret to Success... Revealed"

"Unlocking the Power of Your Mind... A Step-by-Step Guide"

🎭 The Drama of Hyperbole

Hyperbole is a rhetorical device that involves exaggeration for emphasis or effect.

In headlines, hyperbole can grab the reader's attention by making bold, provocative claims that stand out from the competition. Be cautious with hyperbole, however, as overuse or excessive exaggeration can damage your credibility.

Examples:

"The Ultimate Guide to Mastering Any Skill in Record Time"

"Discover the Revolutionary Technique That Will Transform Your Life"

❓The Curiosity of Questions

Posing questions in your headlines can be an effective way to pique the reader's curiosity and encourage engagement.

Questions compel the reader to seek answers, making them more likely to click on your content. Additionally, questions can create a sense of connection between the content creator and the audience, fostering a sense of dialogue and discussion.

Examples:

"Are You Making These Common Mistakes in Your Marketing Strategy?"

"What's the Secret to Unlocking Your Creative Potential?"

💥 The Impact of Imperatives

Imperatives are commands or instructions that urge the reader to take action. By using imperatives in your headlines, you can create a sense of urgency and importance, making your content more compelling and actionable.

Examples:

"Master Your Time Management Skills Today"

"Transform Your Business with These Innovative Strategies"

💢 The Emotion of Exclamations

Exclamations are powerful rhetorical devices that can evoke strong emotions and convey a sense of excitement or urgency.

Including exclamations in your headlines can make them more attention-grabbing and shareable, increasing the chances of your content being read and circulated.

Examples:

"Unlock Your True Potential: Find Your Passion and Thrive!"

"Experience the Adventure of a Lifetime: Travel the World on a Budget!"

🎀 The Effectiveness of Euphemisms

Euphemisms are polite or indirect expressions used in place of harsher, more direct language.

In headlines, euphemisms can make your message more appealing and relatable, helping to soften potentially controversial or sensitive topics.

Examples:

"Navigating the Challenges of Modern Parenting"

"Redefining Success in a Fast-Paced World"

⚡Antithesis: The Power of Opposites

Antithesis involves placing two opposite words side-by-side, emphasizing their contrasts. This device can create a sense of tension and intrigue in headlines.

Examples:

"Once a day. Every day"

"Soft on skin. Kill germs"

"Mega power. Mini size."

To utilize antithesis, identify two opposing concepts related to your content and present them in a balanced manner.

🎨 Scesis Onomaton: The Art of Verbless Copy

Scesis onomaton is a rhetorical device that involves writing verbless copy, which quickens the pace and adds emphasis.

Example:

"7 days. 7 dollars. Full access."

To use scesis onomaton, remove verbs and focus on the essential elements of your headline.

🌟 Polyptoton: The Charm of Shared Roots

Polyptoton is the repeated use of words that share the same root, bewitching words into memorable phrases.

Examples:

"Real bread isn't made in factories. It's baked in bakeries"

"Lose your knack for losing things."

To employ polyptoton, identify words with shared roots that are relevant to your content.

✨ Asyndeton: The Elegance of Omission

Asyndeton involves the intentional omission of conjunctions, adding crispness, conviction, and elegance to your headlines.

Examples:

"You, Me, Sushi?"

"All the latte art, none of the environmental impact."

To use asyndeton, eliminate conjunctions and focus on the core message of your headline.

🔮 Tricolon: The Magic of Threes

Tricolon is a rhetorical device that uses the power of three, creating memorable and impactful headlines.

Examples:

"Show it, say it, send it"

"Eat Well, Live Well, Be Well."

To use tricolon, craft a headline with three key elements that emphasize your content's main message.

🔔 Epistrophe: The Chime of Repetition

Epistrophe involves the repetition of words or phrases at the end of successive clauses, adding a chime to your headlines.

Examples:

"Catch it. Bin it. Kill it."

"Joint friendly. Climate friendly. Family friendly."

To employ epistrophe, repeat a key phrase or word at the end of each clause.

I relocated my notes database from Roam Research to Obsidian earlier this year expecting to stay there for a long. Obsidian is a terrific tool, and I explained my move in that post.

Moving everything to Tana faster than intended. Tana? Why?

Tana is just another note-taking app, but it does it differently. Three note-taking apps existed before Tana:

1. simple note-taking programs like Apple Notes and Google Keep.

2. Roam Research and Obsidian are two graph-style applications that assisted connect your notes.

3. You can create effective tables and charts with data-focused tools like Notion and Airtable.

Tana is the first great software I've encountered that combines graph and data notes. Google Keep will certainly remain my rapid notes app of preference. This Shu Omi video gives a good overview:

Tana handles everything I did in Obsidian with books, people, and blog entries, plus more. I can find book quotes, log my workouts, and connect my thoughts more easily. It should make writing blog entries notes easier, so we'll see.

Tana is now invite-only, but if you're interested, visit their site and sign up. As Shu noted in the video above, the product hasn't been published yet but seems quite polished.

Whether I stay with Tana or not, I'm excited to see where these apps are going and how they can benefit us all.