SaaStr · 2024-05-09 · 756d

The Critical Importance of Hiring Great VPs Across All Departments at $1.5M+ ARR

Jason Lemkin argues that SaaS founders between $1M-$20M ARR need great VPs across all functions (Product, Marketing, Customer Success, Engineering, Business Development) once reaching Initial Traction, not just in Sales. Most founders underestimate the impact of exceptional VPs in non-sales roles because they haven't experienced working with great ones. A truly great VP in any role will substantially move the needle and become accretive to the business.

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Metrics in this report

ARR Range for VP Hiring Decision

1.5-20M

range

SaaS companies ready for VP-level leadership across functions

Customer Count Complexity Threshold

1000customers

minimum

When VP of Product becomes essential for management

Customer Success Revenue Growth Target

10-20%

range

Year-over-year growth from installed base that VP of Customer Success can own

Engineering VP Necessity Threshold

4-5M

range

ARR level when separate VP of Engineering needed to support CTO

Product Features at Scale

10000features

range

Complexity level requiring dedicated VP of Product

VP Ownership Probability

95%

estimated

Likelihood that only VP-level marketing can own lead commits and revenue targets