SaaStr

DECEMBER 14, 2023

Alison brings the perspective of all sides of a startup, from investing to SaaS to Cloud. I t’s been a wild growth experience, and Google Cloud is considered the fourth or fifth-largest Enterprise company in the world. For Google Workspace, they invested in expanding and building Google Meet and the rest of the workspace during 2020.

Cloud 241

Cloud Scale AWS AI 241

Sales Hacker

SEPTEMBER 22, 2023

Turning a free sign-up into an enterprise logo involves a multi-step process that requires careful planning, design, and execution. Establishing an inside sales team can enhance freemium conversion rates for enterprise-level B2B products by focusing on identifying and directly engaging high-priority leads. Anyway, let’s get into it.

Enterprise 87

Enterprise Scale Generative AI SMB 87

SaaStr

DECEMBER 28, 2023

What’s your most recent disclosed investment? What’s your sweet spot for investing — check size, stage, type of deal? We invest across all stages — seed, early venture, and growth, with a primary focus on early-stage. Some of our most notable investments include Figma, Datadog, Discord, Adyen and Roblox.

Technical Review 210

Technical Review Software Review Payment Solutions Venture Capital 210

Clouded Judgement

DECEMBER 1, 2023

General purpose GenAI tools dominate the market today, but the tooling layer is starting to emerge to allow enterprises to fine tune models to their specific data. This was repeated quite a few times AI tends to be additive budget for large enterprises. Even a DCF is riddled with long term assumptions. Top 5 Median: 16.6x

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

Intercom, Inc.

OCTOBER 8, 2020

And the challenge is a lot harder in an enterprise context, where the buyer and the user aren’t necessarily one and the same person. Many businesses struggle to strike a balance between freemium’s light-touch customer engagement with the more involved enterprise sales process. Meeting the needs of an enterprise buyer.

Scale 205

Scale Sales Hiring Software Review Technical Review 205

Clouded Judgement

MARCH 29, 2024

Even a DCF is riddled with long term assumptions. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S.

Cloud 278

Cloud Forecasting Subscription Payment Features 278

SaaStr

APRIL 3, 2024

Jennifer emphasized the importance of having the right motives and values as a leader, such as growing people, expanding markets, and building value for others, to sustain long-term success. Most of PagerDuty’s customers are Enterprises, and they’re in varying places on the continuum in their journey of adopting GenAI.

Generative AI 238

Generative AI AI Technical Review Software Review 238

Clouded Judgement

DECEMBER 22, 2023

Subscribe now Revisiting the “Is Software Expensive” Question The current median revenue multiple for the software universe is 6.4x, which is ~17% below the long term average multiple of 7.8x. During the period where the long term average multiple was 7.8x, the median projected growth rate was 27%. Top 5 Median: 16.1x

Cloud 177

Cloud Subscription Payment Features Metrics 177

Clouded Judgement

APRIL 12, 2024

This tells me the market is expecting one of two things - a true re-acceleration in top line that will show up in the short term, or inflation to reverse course and start falling again in the short term. Even a DCF is riddled with long term assumptions. Altimeter is an investment adviser registered with the U.S.

Cloud 141

Cloud Subscription Payment Features Revenue 141

SaaStr

NOVEMBER 30, 2023

Those familiar with ICONIQ’s work will recognize the ICONIQ Growth Enterprise 5. A really strong organization in place in terms of geographic presence and the size of your customers is key. The Growth Stage — $50M to $100M ARR This stage is all about building long-term efficient growth. Net dollar retention.

Scale 237

Scale Sales Hiring Scaling Outsourced Development 237

SaaStr

JUNE 27, 2019

Erica has led New Relic through massive growth, scaling the company’s enterprise business 10x since she joined the business pre-IPO. Erica will share the five critical steps (and some lessons learned along the way) for scaling in the enterprise. A little bit more about our journey to the enterprise. And so let’s dive in.

Scale 177

Scale Enterprise Scaling Sales Hiring 177

SaaStr

NOVEMBER 25, 2021

Traditional VCs usually reserve another 1x-2x of their first check for later investments. If the synergies are real, they’ll happen irrespective of some token investment. An investment won’t create a partnership. An investment may anoint one vendor in the space as the preferred vendor over competitors. Be realistic.

Outsourcing Services 344

Outsourcing Services Investment Venture Capital Pricing 344

SaaStr

NOVEMBER 4, 2021

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In terms of Customer Acquisition Costs, “Rule of 40” Qualifiers spent 31% less to acquire a new customer. What Is The SaaS “Rule of 40”?

SaaS 269

SaaS Technical Review Benchmarks Azure 269

SaaStr

JUNE 17, 2023

In the ever-evolving landscape of SaaS, Venture Capital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. We’ll explain Jason’s take on the recent market fluctuations, highlighting major deals that shaped investment patterns and their effects on valuation trends.

Venture Capital 218

Venture Capital Scale Technical Review Software Review 218

Clouded Judgement

OCTOBER 13, 2023

So while it’s good to see broth expectations pick up for 2024, the current expectations would still be below the long term annual growth average. In the short term, however, there does seem to still be pressure on budgets. So long term there’s lots of optimism for budget growth, and short term people are still cautious.

Cloud 169

Cloud Artificial Intelligence Subscription Payment Features 169

Clouded Judgement

MARCH 22, 2024

Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Even a DCF is riddled with long term assumptions. Overall Stats: Overall Median: 6.3x

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

NOVEMBER 8, 2023

Three moments when they scaled too fast include: Assuming an Enterprise opportunity for CS after closing only one Enterprise deal. For the Enterprise deal, they closed their first gigantic deal at $2.6M They thought it was the beginning of the next phase, hired ten Enterprise reps, and built a team. ARR around 2015.

Scale 241

Scale Sales Hiring SaaS Scaling 241

SaaStr

MAY 11, 2021

Our Churn is Basically Zero in the Enterprise. Compare Freemium churn rates of 2-3% a month, to Enterprise SaaS net churn (including upsell / upgrades) that is often less than zero … man it sounds like those Enterprise customers don’t go anywhere. It’s a term well known to Net Promoter Score advocates.

B2C 265

B2C Churn Enterprise Revenue 265

Clouded Judgement

MARCH 15, 2024

Even a DCF is riddled with long term assumptions. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S.

Cloud 161

Cloud Software Review Subscription Payment Features 161

SaaStr

JANUARY 6, 2023

On any given day, the enterprise buyer has many priorities that will come before your product, and those priorities may not be what you expect. At mid-market to large companies, the enterprise buyer is almost always going to pick the solution that doesn’t get them fired. Number two is risk.

Enterprise 130

Enterprise Sales Funnel Innovation Branding 130

SaaStr

APRIL 10, 2023

B2B SaaS companies often aim to land large enterprise clients that can bring with them long relationships and large deals. As Durham puts it: “Flashforward to $200M ARR, the company decided we wanted to make an intentional move toward the enterprise. 2023 & Beyond: Zendesk has expanded terms for later-stage startups.

Startup 209

Startup Scale SMB Venture Capital 209

SaaStr

DECEMBER 31, 2019

With the complexity of multiple stakeholders and the increasing purchasing influence of end users, the bar is higher than ever for enterprise UX as companies pioneer business models beyond traditional SaaS. Very excited to talk to you today about building consumer grade products for the enterprise. Want to see more content like this?

Enterprise 132

Enterprise Underperforming Technical Team Scale B2B 132

Clouded Judgement

APRIL 19, 2024

Even a DCF is riddled with long term assumptions. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S.

Cloud 141

Cloud Scale Subscription Payment Features 141

SaaStr

APRIL 26, 2020

VCs are Worried about “Deflation” in terms of pricing funding rounds. It’s easier just to go find a brand new investment with less overhang and fewer issues. Innovation Is Dead in Enterprise. Especially many enterprise customers want flexibility now. ” Worried about emerging market investments.

Technical Review 298

Technical Review Venture Capital Innovation Pricing 298

Tom Tunguz

NOVEMBER 3, 2021

The distribution of enterprise value to ARR multiples parallels those of EV/NTM revenue in a few ways. The market is observing investments fetching 200, 300, 400x ARR, sometimes more, so the premium can be substantial. I wonder if it’s the right metric long term. Let’s look at the data. Is it warranted?

Benchmarks 359

Benchmarks Startup Metrics Revenue 359

SaaStr

JULY 5, 2023

I like this chart a lot showing both the awesome power of high NRR, and also how you have to invest in customers that scale with you over time. That’s OK, but it doesn’t add real long-term value. Top 100 Customers are 33% of Revenue, and Enterprise Customers are 75% of Revenue. Go long, invest long.

Scale 185

Scale cloud efficiency Cloud Business Model 185

Clouded Judgement

JANUARY 5, 2024

In the short term, when rates are more stable (and I think we’ll see this with inflation being less of a question mark this year), if numbers go up stocks tend to go up. But in short term, it tends to be more about which direction are estimates heading. Even a DCF is riddled with long term assumptions. Top 5 Median: 15.3x

Cloud 152

Cloud Trends Subscription Payment Features 152

SaaStr

APRIL 4, 2023

If You Have A Medium CAC Target You’ll likely focus on lower enterprise and have an inside sales organization like a VP of Sales and SDRs. If You Have A Larger CAC Target If you have a larger CAC target, you’re likely focusing on large enterprises. The sales cycle at this stage may be very short.

Scale 231

Scale Strategy Scaling Outbound Sales Team 231

SaaStr

JANUARY 15, 2023

SaaStr 624: Investing and Venture Capital in 2023 with SaaStr Founder and CEO Jason Lemkin and Atrium Founder and CRO Pete Kazanjy. . SaaStr 623: Removing Friction: How to Turn More Than 40% of Your Prospects Into Long Term Enterprise Customers with Attentive Co-founder and CEO Brian Long.   .

Scale 231

Scale Venture Capital Sales Hiring Scaling 231

SaaStr

DECEMBER 30, 2022

Not all products are made for enterprise customers. So, they’re not diluting their efforts by going towards the “hyperscaler enterprise customers” or “niche developer clouds.” Even if most of your users prefer to explore the products on their own terms, many will need assistance from your end before they become paying customers.

Scale 202

Scale Scaling Revenue Enterprise 202

SaaStr

JANUARY 11, 2022

That’s 10% of all the invested capital!! Let’s talk about why it’s a good investment: Trade shows / events produce a lot of so-called “leads”, but a lot of cr*p leads and long lead time leads. This is some of the magic in the math of the investment. Especially in the enterprise.

Scale 328

Scale Investment Retention Customer Success 328

Totango

JANUARY 23, 2020

As such, enterprises need to prioritize cultivating long-term customer relationships that foster continual, mutual growth. Lack of Customer Engagement: Enterprises should provide frequent, helpful, personalized engagements throughout the customer journey. Share Customer Data Across Your Enterprise. Accelerate Onboarding.

Churn 105

Churn Enterprise Strategy Management 105

Clouded Judgement

DECEMBER 29, 2023

Even a DCF is riddled with long term assumptions. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S.

Cloud 189

Cloud Software Review Subscription Payment Features 189

Clouded Judgement

FEBRUARY 9, 2024

Our goal over the long term is to bring net dilution down to under 2%." Even a DCF is riddled with long term assumptions. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. This is for information purposes and should not be construed as an investment recommendation.

Cloud 195

Cloud Pricing Startup Revenue 195

SaaStr

DECEMBER 29, 2019

But if you are thinking in terms of Decade Long Relationships … put sales and even customer success back on lost customers. Customers invest in not just products, but relationships. Enterprise deals are nothing like SMB deals, most especially over the long term. Invest like that. Not Always. Measure NPS.

Scale 349

Scale Churn Construction SMB 349

SaaStr

JUNE 30, 2023

If you’re building a generational company, you need to think long-term. The Takeaway — There is short-term opportunity when chasing shiny things, but if you want to create an enduring business, you need to dig a few layers deeper and figure out what behaviors will likely stick around in 5-10 years vs. what is needed right now.

Scale 201

Scale Mobile Venture Capital Scaling 201

Clouded Judgement

NOVEMBER 24, 2023

Even a DCF is riddled with long term assumptions. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S.

Cloud 161

Cloud Subscription Payment Features Metrics 161