In VC-backed B2B SaaS companies, the structure of your Business Development Representative (BDR) team can significantly impact pipeline efficiency, alignment, and conversion rates. One of the most frequently debated questions among early-stage go-to-market (GTM) leaders is this:

Should BDRs report to Sales or Marketing?

The short answer?

It depends—on your growth stage, sales motion, and GTM strategy.

Below, we break down when each structure makes the most sense.

✅ BDRs Reporting to Sales (Most Common)

In most B2B SaaS companies, especially those with outbound motions or longer sales cycles, BDRs sit within the Sales organization. Why? Because their primary function is to generate qualified pipeline and support Account Executives (AEs) in closing deals.

Best for:

🔹 Outbound-heavy GTM motions – If your BDRs are focused on cold outreach and prospecting into new accounts, close alignment with Sales ensures tighter execution and feedback loops.

🔹 Complex sales cycles – Sales leadership can guide BDRs through nuanced qualification and handoff processes that Marketing might not be equipped to manage.

🔹 Collaboration with AEs – BDRs often work hand-in-hand with AEs, so reporting into Sales fosters stronger alignment and accountability.

Key Benefits:

🔹 Clearer pipeline ownership

🔹 Better sales coaching and development

🔹 Direct feedback on lead quality and handoff

🎯 BDRs Reporting to Marketing (Less Common, But Sometimes Ideal)

For companies with an inbound-heavy GTM motion, placing BDRs within the Marketing team can optimize lead follow-up and increase MQL-to-SQL conversion rates.

Best for:

🔹 Inbound-heavy models – When the majority of leads come from content, events, or paid campaigns, BDRs need to work closely with Marketing to prioritize and convert.

🔹 High-velocity sales cycles – Speed to response is crucial when your prospects are evaluating multiple solutions quickly.

🔹 Strict MQL > SQL handoffs – Marketing ownership helps enforce consistent qualification standards and accountability.

Key Benefits:

🔹 Improved conversion from MQLs

🔹 Faster lead follow-up

🔹 Stronger insight into campaign effectiveness

🔄 The Hybrid Approach: Split the Team

Some SaaS companies take a blended approach, especially as they scale and differentiate inbound vs. outbound efforts.

Inbound BDRs → Report to Marketing

Outbound BDRs → Report to Sales

This model allows each team to double down on what they do best while ensuring BDRs have tailored goals and coaching depending on their motion.

💡 Final Take: What Works Best for Early-Stage SaaS?

For most early-stage VC-backed B2B SaaS startups, BDRs should report into Sales. When pipeline is your most important growth metric, Sales leadership provides the best support and direction.

However, if your GTM strategy is driven largely by inbound channels and you have a short sales cycle, a Marketing-owned BDR function may offer more efficiency and faster ROI.

The key is alignment. Whatever structure you choose, ensure tight collaboration between Sales and Marketing to avoid leads slipping through the cracks.