SaaStr

MARCH 29, 2024

I’d actually invested in the #1 in the space, which today is at $200m+ ARR. The post Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? So this CEO really wanted to buy a startup at around $10m ARR, that actually wasn’t remotely close to #1 in the space, and wasn’t growing anymore.

Pricing 229

Pricing Scale Startup Acquisition 229

IT World

FEBRUARY 21, 2023

Microsoft is all set to more than triple the prices of its Bing Search APIs across all markets in what can be seen as an effort to recoup its investments into the search engine. To read this article in full, please click here

Pricing 96

Pricing Investment Engineering Technology 96

SaaStr

AUGUST 17, 2023

We came right back on 20VC to do a deep dive on where seed investing is right now with Frank Rotman, one of the most successful fintech investors, Sam Lessin on Slow Ventures, with an incredible portfolio, and Jason Lemkin: It’s a good listen. Per Harry: “WTF is really happening at seed right now? Back up the truck.

Investment 199

Investment Pricing 199

SaaStr

SEPTEMBER 3, 2021

Q: How Do VCs Mitigate Investment Risks? There are a number of slightly subtle things the best VCs do, and the rest really don’t: Getting other investors to carry their “Yellow Lights” You’ll end up with investments sort of doing OK, with customers, but really burning too much cash to justify another check.

Investment 230

Investment Cloud Pricing Branding 230

Tom Tunguz

FEBRUARY 6, 2022

If I gave you $10,000 to invest in one company today among the following four software businesses, which would you pick? Which investment will generate the greatest return? Company 2 compounds revenue at 83% the rate of company 1, but at half the price. The revenue trajectory mirrors company 3 at one-half the price.

Investment 257

Investment Pricing Business Model Enterprise 257

Tom Tunguz

AUGUST 7, 2022

But no relationship exists between the Nasdaq’s price level & multiples. The data suggests the market has attained a pricing floor. I can’t ascertain how record fundraising inflows into private equity funds might bolster these prices, but the billions burning holes in PE wallets must impel some activity.

Acquisition 318

Acquisition Pricing Startup Software 318

SaaStr

OCTOBER 12, 2023

Harry Stebbings of 20VC was kind enough to have us back on the latest VC Roundtable with 2 of the very, very best in growth / late-stage investing — the leaders of Insight Partners and Technology Crossover Ventures. They’ve led later stage investments in the best in SaaS and Cloud. And Where is Growth Investing?

Investment 220

Investment AI Cloud Scale 220

Andreessen Horowitz

AUGUST 15, 2022

Structural shortages in available homes for sale push housing prices higher, while young … The post Investing in Flow appeared first on Andreessen Horowitz. The demographic trends driving America’s housing market are impossible to ignore: our country is creating households faster than we’re building houses.

Investment 145

Investment Trends Pricing Sales 145

SaaStr

JANUARY 6, 2021

Q: I run a bootstrapped software company and our biggest customer (60% of our revenue) has offered on several occasions to invest in the company. Taking an investment from your largest customer certainly will complicate things. Rarely keep investing after the initial investment. But a VC investment is.

Investment 278

Investment Software Review Acquisition Pricing 278

SaaStr

AUGUST 12, 2022

Dear SaaStr: How Much Money Does a VC Make If Their Investment Sells for One Billion? Let’s say: The fund owns 10% at exit, with a blended entry price of ~$100m (fund invested early, but also did some pro-ratas) and thus a total blended investment across rounds of ~$10m. Often not as much as you’d think.

Investment 226

Investment Pricing Startup Sales 226

SaaStr

APRIL 19, 2020

Q: What are the Pros and Cons of Seed Investing? Seed investing is a bit of a sucker bet. At least on a relative basis to other types of venture investing. Well, the “good news” for seed investing is you should have a much lower entry price than a Series A-B-C investor. of each investment on average.

Investment 264

Investment Benchmarks Pricing 264

Buffer Resources

FEBRUARY 28, 2024

And you don’t get “business” status without understanding pricing. So, together with creator sponsorships expert Justin Moore , who helps creators negotiate partnerships through Creator Wizard , we put together this resource on how to figure out your pricing as a creator.

Pricing 96

Pricing Social Media Consulting Branding 96

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 174

Outsourcing Services Investment Venture Capital Pricing 174

FastSpring

SEPTEMBER 16, 2022

But what about pricing? When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 110

Pricing Payment Solutions Payment Services SaaS Payments 110

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 196

Pricing Scale Retention AI 196

Intercom, Inc.

OCTOBER 7, 2020

“Support isn’t just a cost center, but a strategic investment that increases customer retention and reduces churn” Indeed, if you look at the broader financial models of customer support, you’ll see that support isn’t just a cost center, but a strategic investment that increases customer retention and reduces churn.

Customer Support 196

Customer Support Investment Scale Retention 196

Andreessen Horowitz

OCTOBER 5, 2021

Jeff Bezos famously said “your margin is my opportunity,” referring to the way Amazon grew market share by lowering prices and eating into competitor margins. In the transition from web2 to web3, a similar trend is taking shape, but this … The post Investing in Axie Infinity appeared first on Andreessen Horowitz.

Investment 124

Investment Trends Pricing Marketing 124

How To Buy Saas

MARCH 7, 2024

The pricing model for software as a service (SaaS) might come in three different formats which are subscription-based, usage-based, or tiered pricing model systems. Therefore, you should undertake careful consideration—to choose the most reasonable option—that matches your needs, to ensure value for your investment.

Pricing 52

Pricing SaaS Payments Payment Solutions Payment Methods 52

SaaStr

APRIL 19, 2024

He’s invested in startups as a VC since 2013 and has 10x his fund. Reverse Engineering Your Way to $100M Tip #3 As soon as you cross 5% of your revenue in an area, invest in it. As soon as you see a cluster in England, Chile, and Brazil, invest in and support it. That’s how you approach pricing until you’re really big.

Engineering 228

Engineering Business Model Pricing Scaling 228

User Pilot

SEPTEMBER 20, 2023

Working out pricing for a SaaS can be difficult, so consider using a cost-plus pricing method. TL;DR Cost-plus pricing, or markup pricing, is where you add a set to a product’s unit cost, often overlooking competitive market prices. Justifying price increases is easier when adopting a cost plus strategy.

Pricing 102

Pricing Software Review Market Research Acquisition 102

FastSpring

DECEMBER 16, 2022

One popular solution for managing and automating parts of the sales process is by using CPQ (Configure, Price, Quote) Software. CPQ (Configure Price Quote) is a type of sales software that allows sales reps to quickly and easily configure products and services, generate accurate pricing, and create quotes to be sent to customers.

Payment Services 138

Payment Services Payment Solutions Pricing Payments 138

SaaStr

DECEMBER 8, 2019

Q: Why would an investor invest in a pre-revenue company? And you’d even wait if that meant the price went up a tiny bit. As long as the price doesn’t go up too much, it’s still generally better to wait. And de-risk the investment. If someone else is going to do the deal, you may need to invest now. It really can.

Investment 143

Investment Revenue Venture Capital Pricing 143

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Ensures You Attract the Right Customers When Should You Increase Your Pricing?

Pricing 111

Pricing SaaS Scale Churn 111

Tom Tunguz

JANUARY 16, 2018

Last week, I shared a presentation with an executive team at a large public SaaS company on everything I’ve learned about pricing. Here’s a summary of the frameworks and theory that I’ve aggregated over a decade of investing in startups. Why do we set prices? There are four components to pricing: 1.

Pricing 240

Pricing Market Research Interviewing Product Marketing 240

SaaStr

APRIL 17, 2024

But it’s decided to keep investing heavily in growth. But getting them all really requires big stock price growth, all the way up to 759% stock price aprpeciation. Still, it’s losing far less than in the Go Go Times of 2021. It still burned -$93m in cash through January 31, 2024. 68% of Revenue in U.S.,

Scale 219

Scale Pricing Scaling Cloud 219

Andreessen Horowitz

JUNE 21, 2023

A Tale of Two Exponentials Harnessing Moore to combat Eroom Computers today are roughly 1000x more powerful, at the same price, than those a decade ago. This … The post AI at the Intersection: The a16z Investment Thesis on AI in Bio + Health appeared first on Andreessen Horowitz.

AI 106

AI Investment Pricing Generative AI 106

SaaStr

MARCH 22, 2024

And what it says is that even though Seed stage investing remains arguably as strong as ever … Series A hasn’t bounced back. And on a related note, Redpoint data shows that the hottest late-stage “AI” deals are getting done at 3x the price of non-AI deals. the growth. There’s no free lunch.

AI 302

AI Pricing Data Investment 302

SaaStr

NOVEMBER 13, 2023

To me, the most jarring statistic was this one: 80% of IPOs since 2020 are trading below their IPO price, or “broken ”: So what, you might think? Most VC investments do need to make money. There, even if most “logos” don’t make money, most of the dollars invested do need to make money. Buyer beware? Not all, but most.

Pricing 248

Pricing Investment Startup Data 248

Andreessen Horowitz

APRIL 7, 2021

Half-Priced Healthcare That’s Twice as Good. Vertically-integrated “payviders” (groups that both pay for services, like an insurer would, and administer those services, like a provider would) are emerging as … The post Investing in Firefly Health appeared first on Andreessen Horowitz.

Investment 104

Investment Healthcare Pricing 104

Andreessen Horowitz

MAY 11, 2022

None of the items were labeled with prices, and many items could be … The post Investing in Turquoise Health appeared first on Andreessen Horowitz. Growing up in Seoul, Korea, I used to love shopping at the night markets, where I’d go for the thrill of the chase of a good deal.

Investment 80

Investment Pricing Marketing 80

Andreessen Horowitz

SEPTEMBER 28, 2021

Crypto assets like ETH and BTC have been challenging to use for payments, lending, and a variety of other financial applications in large part because of their price instability. Making a loan in ETH carries … The post Investing in Angle appeared first on Andreessen Horowitz. Take lending as an example.

Investment 84

Investment Pricing Blockchain 84

SaaStr

JUNE 29, 2023

As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. AI-Powered Tools: AI-related purchases in Q1: Made up 41% of new investments in Q1. But there is even more nuance to the reason behind the price hike.

VP of Engineering 230

VP of Engineering Trends Cybersecurity Sales Hiring 230

SaaStr

JANUARY 16, 2020

Q: Can the initial angel investment round be changed 2 years later to benefit the board members and not the remaining investors? There have been several safe note investments but not a series A yet. When you make an angel investment, you are trusting the founders. Oh for sure. I’ve seen this twice. appeared first on SaaStr.

Investment 144

Investment Pricing 144

OpenView Labs

APRIL 8, 2021

The response since the usage-based pricing playbook has far exceeded my expectations. My TechCrunch byline went semi-viral, Bessemer named usage-based pricing part of the “ new normal ” for SaaS go-to-market strategy, and Alex Wilhelm said it’s “ one theme that’s come up time and again ” in public company earnings calls.

Pricing 97

Pricing Scale Subscription Payment Features 97

Blulogix

FEBRUARY 17, 2024

The Art of Flexibility: How to Master Dynamic Pricing Models in Subscription Billing By BluLogix Team Adapting to the Pulse of the Market for Maximized Revenue In today’s rapidly evolving digital marketplace, static pricing models are becoming a relic of the past.

Subscription 52

Subscription Payment Features Pricing Marketplace as a Service 52

Blulogix

NOVEMBER 8, 2023

Accelerating Subscription Business Growth with Usage-Based Pricing By BluLogix Team The subscription business model has long been recognized as a steady path to recurring revenue and business growth. The Evolution of Pricing Traditionally, subscription businesses offered fixed-rate plans. Transparent Pricing: Communication is key.

Subscription 52

Subscription Payment Features Pricing Business 52

User Pilot

MARCH 16, 2023

Looking for an in-depth review of UserGuiding pricing so you can understand whether it’s the right choice for you? Finding a product that not only suits your business needs but also delivers value at the right price can be daunting. UserGuiding’s pricing plans. UserGuiding’s dashboard. How much does UserGuiding cost?

Pricing 97

Pricing Software Review Technical Review Onboarding 97