Marketing budget for Series A (enterprise b2b tech startup)

(Arthur Etchells) #1

My company is evaluating a series A raise and balancing funding requirements vs dilution. I’m hoping to get data points relevant to this decision process vis-a-vis marketing budget.

I’m particularly interested in information from startups targeting enterprise b2b space, but any datapoints would be helpful here.

A couple potential approaches:

  • Target 10-20% of forward revenue projection for the coming year.
  • Some higher percentage of current revenue.
  • Tie back to specific initiatives.

Best-case scenario would be some info / guidance from marketers at series B or later environments that can cast light on projection / reality on marketing spend.

(Arthur Etchells) #2

Also appreciated: any solid articles folks have read on the subject… anything in the vein of

(neil clemmons) #3

A few considerations:

  • I’ve worked in marketing tech and ad tech spaces.

  • how close are you to product / market fit? I would be careful about driving marketing (and sales) too aggresivvely until you can see repeatability and delight from your early customers. Make sure the engineering and product needs are filled first.

  • You didn’t mention the area of enterprise B2B. But things like AdTech will require a lot more sales effort than marketing effort. Things like AI will require more marketing spend and less sales spend as an early mix in my experience.

  • I’ve found longer term marketing investment in partnerships, white papers, case studies or speaking opportunities are far better marketing investments than events, trade shows, etc. Nearer in, building a lead pipeline through social, CRM and other outreach efforts will be your best ROI if you are at product/market fit.

  • So I’d start with a set of the right activities and back into a budget rather than thinking about a budget expense percentage to build the plan.

Hope that helps -

(Arthur Etchells) #4
  • We’ve achieved good product / market fit. Our solution is very sticky (negative churn), but entails a long sales cycle (6-9+ months).
  • Conversion-optimized eCommerce & search.
  • Yeah, I wouldn’t expect exhibiting at events and trade shows to be a slam dunk, but we’ve had success w/ case studies.
  • Speaking opportunities, white papers and more case studies are on our radar.
  • Our investments to date have been heavily weighted towards sales, so it’s a little bit too early to back specific marketing activities into the budget.