Tom Tunguz

MARCH 20, 2024

Will AI sofware companies operate with better or worse profitability than a classic SaaS company? AI SaaS may be much more profitable than the -10% average net income margins of the current crop of public businesses. Initially, I thought worse since the expense of serving AI as a product is signficantly higher.

AI Search 201

AI Search AI Scale SaaS 201

SaaStr

DECEMBER 14, 2023

Lower interest rates lead to SaaS multiple reflation, likely during 2H’24 It’s not clear how truly tight the link is between interest rates and SaaS multiples, but the overall correlation is clear. Lower inflation and the fed lowering interest rates should lead to an expansion of SaaS multiples.

Scale 245

Scale SaaS AI Innovation 245

SaaStr

JANUARY 3, 2024

Dear SaaStr: Should I Go Into SaaS Sales? Maybe in 2021, when many SaaS leaders were growing at simply unprecedented rates, could succeed in sales if you weren’t sure you wanted to sell. The post Dear SaaStr: Should I Go Into SaaS Sales? If you aren’t sure you want to go into sales — don’t do it. Not today.

Sales Recruiting 233

Sales Recruiting Sales SaaS Management 233

SaaStr

JANUARY 26, 2024

Dear SaaStr: What Are Some of the Biggest Changes for SaaS Founders and Startups in 2024? Slower Growth in SaaS is Internalized. A few I’m watching: #1. The Rise of One-and-Done Fundraising as a Vibe Founders will get back to only planning to raise one round to truly get to product-market fit for real. A related post here. #2.

SaaS 221

SaaS Startup Scaling Product Marketing 221

SaaStr

DECEMBER 21, 2023

So there were barely any SaaS IPOs in 2022 or 2023. The last big SaaS IPO of the Boom Era was Hashicorp in December 2021, and after that, multiples fell off a cliff. There were basically no significant SaaS IPOs for almost 2 years, until Klaviyo (+ Instacast + ARM) all tried to reopen the market in September 2023.

SaaS 286

SaaS Software Marketing Management 286

SaaStr

MARCH 18, 2024

Dear SaaStr: If you were hiring a head of sales for a high-priced, niche B2B SaaS product, would you focus on general B2B SaaS sales experience or on market/customer knowledge, assuming it will be very difficult to find a candidate with both? So be wary of hiring generic B2B reps into your early-stage, complex vertical B2B SaaS.

Sales Hiring 265

Sales Hiring Sales SaaS B2B 265

Stax

APRIL 18, 2024

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. SaaS companies deliver software applications over the internet on a subscription basis, simplifying access and management for users. What are SaaS companies?

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

For Entrepreneurs with David Skok

OCTOBER 28, 2021

2021 SAAS SURVEY – Part 1 For the eighth year in a row, we’re proud to work with KBCM Technology Group (formerly Pacific Crest Securities) Thank you to the readers of forEntrepreneurs who participated in taking the survey! Thank you also to Adam Noily and the team at KBCM Technology Group for their work on.

SaaS 342

SaaS Technology Startup 342

SaaStr

MARCH 5, 2024

Dear SaaStr: What’s the #1 Most Important Thing in Pricing A New SaaS Product? Most first-time SaaS CEOs price too low and don’t drive ACVs up quickly enough because they don’t quite yet understand the context of the product. The post What’s the #1 Most Important Thing in Pricing A New SaaS Product? And Anchor High.

Pricing 194

Pricing SaaS Software 194

SaaStr

DECEMBER 25, 2023

Dear SaaStr: Should SaaS Pricing Be Adjusted for Different Geographical Markets? The post Dear SaaStr: Should SaaS Pricing Be Adjusted for Different Geographical Markets? Your public pricing? Usually the answer is — Not Today. First, it’s complex to manage. Third, it’s unlikely to move the needle. Usually — wait.

Pricing 238

Pricing Marketing SaaS Development 238

SaaStr

FEBRUARY 27, 2024

Dear SaaStr: What Is The Best Indicators of Product Market Fit at an Early Stage SaaS B2B Startup? This is a rough metric, but I’d say from experience working closely with 25+ SaaS companies … if you aren’t growing > 10% a month after $10k in MRR or so … then you don’t yet have product-market fit. Not yet at least.

Product Marketing 272

Product Marketing B2B Startup Marketing 272

SaaStr

NOVEMBER 24, 2023

(And yes, I know we can argue Databricks is neither really Cloud nor really SaaS. I’d argue that doesn’t much matter — its comparables are the Cloud and SaaS leaders). Canva image from here ) The post Canva and Databricks: The Two Big Potential SaaS / Cloud IPOs of 2024 appeared first on SaaStr.

Cloud 275

Cloud SaaS Enterprise Branding 275

SaaStr

MAY 22, 2023

Not easy, but easier and easier: There was a bump in 2016, a Flash Crash in SaaS, when budgets were slashed, but it didn’t last long enough to really impact renewal cycles. SaaS markets had fully recovered later that year. Even the 2008-2009 downturn, while truly brutal, didn’t hit SaaS as hard as the rest of the economy.

SaaS 236

SaaS Churn Sales Software 236

SaaStr

JANUARY 4, 2024

It was mixed actually, even if startups didn’t seem to get a breather, it wasn’t so bad for most public SaaS leaders. And yet … it wasn’t all bad, for the bigger guys: The median SaaS and Cloud stock was up 41% in 2023! Most SaaS leaders flipped to cash-flow positive, for many, for the first time.

Startup 177

Startup SaaS AI Pricing 177

SaaStr

DECEMBER 13, 2023

So Jamin Ball at Altimeter Capital probably does the best job of tracking SaaS and Cloud metrics of public companies of anyone out there. And for many in SaaS, we’re merely bouncing off a bottom: We did deep dives with both Henry Shuck, CEO of ZoomInfo, and Aaron Levie, CEO of Box the past few weeks. Albeit Only a Little Bit.

SaaS 238

SaaS Cloud Scale Metrics 238

SaaStr

FEBRUARY 1, 2024

Dear SaaStr: What Is The Ideal Size For a SaaS Marketing Team? The ideal size of a SaaS marketing team until you are at $10m+ ARR is the size that is accretive. The post Dear SaaStr: What Is The Ideal Size For a SaaS Marketing Team? The last thing you want is a bunch of “marketers” whose ROI you don’t understand.

Scale 227

Scale Marketing SaaS Scaling 227

SaaStr

NOVEMBER 8, 2022

You know what’s back in fashion today in SaaS? And that’s a lot rarer in SaaS. But so many SaaS leaders aren’t really profitable at $1B ARR even, Why not? And it’s not just public SaaS companies that are often struggling to get profitable. I’m an investor in maybe 30 SaaS startups. So is SaaS cursed?

Scale 279

Scale SaaS Banking AWS 279

SaaStr

OCTOBER 25, 2023

Dear SaaStr: Why Do So Many SaaS CEOs Get Fired? More here: SaaS CEOs That Go The Distance, To IPO … Tend To Be Founder-CEOs (see you soon image from here ) The post Dear SaaStr: Why Do So Many SaaS CEOs Get Fired? I think this is a bit of a misnomer. And both companies did quite well. appeared first on SaaStr.

SaaS 229

SaaS Investment 229

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. The SaaS “Rule of 40” has gained popularity due to its simplicity, requiring only two common financial metrics to be added together. What Is The SaaS “Rule of 40”?

SaaS 255

SaaS Technical Review Benchmarks Azure 255

SaaStr

DECEMBER 16, 2023

Dear SaaStr: What Are The Top 10 Things to Know Before Starting a SaaS Company? It takes 7–10 Years in SaaS to Get Anywhere. And 99% of SaaS companies will need 7–10 years to get to $100m ARR and beyond. You have to hire so many functions in SaaS – VPS, VPM, VPP, VPCS, VPE, etc. The SaaS Year of Hell.

Part-Time VPE 211

Part-Time VPE CTO Hire Sales Recruiting VPCs (Virtual Private Cloud) 211

SaaStr

FEBRUARY 17, 2024

Dear SaaStr: When Is It Too Soon to Target Enterprise Customers in SaaS? More here: Secrets to Closing Your First 6 Figure Deal (Video + Transcript) | SaaStr View original question on quora The post Dear SaaStr: When Is It Too Soon to Target Enterprise Customers in SaaS? In fact, it happens all the time. appeared first on SaaStr.

Enterprise 227

Enterprise SaaS Churn 227

SaaStr

JUNE 29, 2023

SaaS buying has changed. 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. SaaS Market Snapshot In Q1 of 2023, Vendr gathered data on SaaS Spending and yielded some pretty interesting results.

VP of Engineering 231

VP of Engineering Trends Cybersecurity Sales Hiring 231

SaaStr

MARCH 21, 2023

Dear SaaStr: What’s Changed in SaaS Today? Some categories in SaaS are holding up well, e.g. Cloudflare, Adobe, etc. So pseudo-SaaS products and other products with lower gross margins are commanding much lower valuations. What’s Harder Now? That buying has been put on hold. Gross margins matter again.

Venture Capital 285

Venture Capital SaaS Startup Marketing 285

SaaStr

DECEMBER 29, 2023

Dear SaaStr: How Long Should a Free Trial Be for SaaS Products? What I mean is, this is one of those things in SaaS that is over-analyzed, as if it will make a magical difference. Just bear in mind that’s the real history behind the extremely common 14 day duration you’ll see at many sales-led SaaS leaders. And that’s OK.

SaaS 189

SaaS User Experience Startup Investment 189

User Pilot

MARCH 25, 2024

Whether you’re planning your exit, seeking VC funding, or setting up ESOPs, a SaaS valuation is a must. Our article: Explains different SaaS valuation methods. Shows how to leverage PLG strategies to boost the value of your SaaS business. Want to learn how Userpilot can help you improve your SaaS valuation?

SaaS 102

SaaS Customer Lifetime Value Acquisition Metrics 102

FastSpring

NOVEMBER 9, 2023

Looking to join SaaS founders and tech enthusiasts who are discussing the most innovative trends for SaaS companies? If so, join FastSpring at the SaaS North November 15-16th! Since 2016, SaaS North has been recognized as THE Canadian hub for rapidly-scaling SaaS founders and their teams.

Merchant Services 126

Merchant Services SaaS Payments Payment Methods Payment Services 126

User Pilot

APRIL 24, 2024

This includes the SaaS industry too. In this article, we explain: Why investing in AI in SaaS is a must. TL;DR AI helps SaaS teams improve productivity by automating repetitive tasks. This enables SaaS teams to adjust strategies promptly for optimal performance. How to implement AI to build better products.

AI 68

AI Artificial Intelligence SaaS Generative AI 68

SaaS Metrics

APRIL 24, 2024

This blog post aims to delve deep into understanding how Software as a Service tools (also known as SAAS) play a vital role in plumbing businesses. The knowledge you can gather from here helps optimize business operations, ease workflow, Read more The post Plumbing Metrics: Key SAAS for Every Business first appeared on SaaS Metrics.

Metrics 52

Metrics Business SaaS Technology 52

User Pilot

JANUARY 29, 2024

A good SaaS UX design is critical to a successful SaaS product in today’s constantly evolving and competitive market. In this article, we will examine what an effective SaaS UX design is, why it’s important, and the best practices to produce a well-crafted design that works. What is SaaS UX design?

SaaS 105

SaaS Interviewing User Experience Onboarding 105

User Pilot

APRIL 8, 2024

If it’s the latter, then you’ve already experienced what bottom-up SaaS is! Our guide explains what exactly bottom-up SaaS is and covers the main growth strategies and tactics used by bottom-up companies. TL;DR In the bottom-up model, a SaaS company promotes the product to individual end-users and teams.

Strategy 85

Strategy Business SaaS Customer Lifetime Value 85