6 | Enabling Revenue Operations in a 21 st Century Commercial Model Copyright © Revenue Enablement Institute Hyper growth cloud businesses face a different set of challenges as they seek to achieve the growth and recurring revenues re quired to achieve the valuations their investors expect upon exit. An analysis by Blossom Str eet Ventures of 49 recent SaaS business IPOs found the businesses were growing at over 50% year on year with net recurring revenue ratios over 100%. Investors rewarded these fi rms’ valuations of over 15 times revenue. 53 Many businesses with SaaS offerings and innovations take on growth capital to fund organic growth but fail to achieve the lev el of scalable and sustainable growth required to penetrate the large addressable markets they target and to justify the valuation their investors made. Armed with enough growth capital, many organizations pursue a “growth at all costs” strategy and spend a significant portion of their budget on building revenue teams and go to market programs to drive double digit growth. But withou t disciplined leadership and a focus on finding ways to create consistent and scalable growth, these businesses can become “gas guzzlers” that fail to gener ate growth commensurate with the dollars invested or share of the market because they lag the compet ition. Other firms achieve high levels of customer acquisition but at the expense of the customer experience and user adoption. These organizations risk becoming “leaky buckets” that lose customers after the back end of the customer journey through churn, lack of user