SaaStr · 2013-06-14 · 4738d

Top 10 Year One SaaS Mistakes to Avoid

Jason Lemkin shares 10 critical mistakes made during his SaaS company's first year, including launching too early, insufficient market diligence, under-raising capital, and scaling inefficiently. Each mistake is framed as avoidable and includes insights on better approaches such as hiring multiple sales reps simultaneously, recognizing repeatable customer patterns early, and balancing short-term execution with long-term strategy. The post emphasizes that these lessons, learned through survival and eventual success, can help other founders avoid similar pitfalls.

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Metrics in this report

Revenue Plan Achievement

50%%

shortfall

Year 1 SaaS company revenue target vs actual

SaaS eSignature Market Size Growth

$1 Million to $5 Billion$

2006 to 2023

Market expansion illustrating long-term opportunity

Series A Funding Gap

$500,000$

additional capital needed

Needed to reach Series B after under-raising in Series A

Series B Underfunding

$2,000,000 to $4,000,000$

range of forgone capital

Additional funding offered but declined in Series B round