How Similar is the Fundraising Environment Today to 2000?

Tomasz Tunguz

In Q2 2015, VC investment totaled $16.7B, about a 66% of the $28B deployed in Q2 2000 according to a new report. However, the number of investments per quarter is about half of 2000. And the trends shows no sign of stopping. A big contributor to this growth are nontraditional investors including mutual funds and hedge funds, which now account for approximately 40% of dollars invested.

Lessons from Interviews of Pre-Eminent VCs in 2000

Tomasz Tunguz

In fact, I found only two books: a textbook on private equity and venture capital by HBS professor Joshua Lerner, and an out-of-print collection of 32 VC interviews called “ Done Deals ,” published in September 2000. By my estimates, VCs are investing less than 1 ⁄ 3 of of the roughly $100B deployed in 2000.

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ServiceNow Closed 678 New $1m+ Deals. Just Last Quarter.

SaaStr

Well, if you haven’t worked in the Fortune 500 / Global 2000 before, it may seem confusing. But some rough maths: The largest Global 2000 companies will pay 10-20+ SaaS vendors $20m+ or more per year. The largest Global 2000 companies will pay 50-100+ SaaS vendors $1m or more per year. There are a few magical moments as you go upmarket in SaaS: The first time you close a $1m TCV (total contract value) deal. E.g., $250k a year for 4 years.

If You Leave the Low End of the Market … You Probably Can’t Go Back

SaaStr

A month of change management is downright swift in the Fortune 2000. Fortune 2000 companies’ workflow and other needs likely are very different from what you know.

Networking Technology: SMB

SaaS Metrics

For example, Windows 95, Windows 98, Windows NT, Windows 2000 and Windows XP. You might not have heard of the SMB protocol but still use it daily. The Server Message Block (SMB) is a network protocol. Its function is to enable users to communicate with remote servers and computers.

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Catch Up on The Top 10 SaaStr Videos of the Week

SaaStr

9: Founder/CEO Lessons from 2000 & 2008 Applied to 2020 with Jeff Lawson, Twilio and Byron Deeter, Bessemer Venture Partners. #10: Since Shelter-at-Home, we’ve seen a micro-explosion in growth on our YouTube Channel. Perhaps it’s part of the general trend in eLearning all across-the-board. That must mean it’s a good time to get caught up on the Best of SaaS. So what are The Top 10 SaaStr Videos of the Week? Let’s take a look! #1:

SaaStr Summit Sessions with CEOs of Slack, Twilio, Zuora, Cloudflare, and Much More Up Now

SaaStr

Founder/CEO Lessons From 2000, 2008 and 2020 with Jeff Lawson and Byron Deeter , CEO of Twilio and GP at Bessemer Venture Partners. We have a bunch of the SaaStr Summit: Bridging the Gap up on You Tube now. You can start watching them here. We have an incredible line up of speakers and sessions to watch already (and more will dribble out in the coming weeks): Taking Care of Your Team and Customers with CEO of Slack , Stewart Butterfield.

New Incredible Sessions added to FREE SaaStr Summit on April 22: CEOs + CIOs Twilio, Zuora, Zendesk, and Much More

SaaStr

Adapt, Plan Deliver: Founder/CEO Lessons from 2000 & 2008 Applied to 2020 With Twilio CEO Jeff Lawson and Bessemer Venture Partner’s Byron Deeter. Ok we are almost at our cap of 10,000+ attendees for the FREE SaaStrSummit on Bridging the Gap on April 22. Many of the sessions already have 5,000+ registrants or more already.

Why Do Some People Consider Venture Capital a “Young Person’s Game”?

SaaStr

Imagine you were a seed VC: Started as an angel, in say 2000. Because it takes so, so long to make money from it. At least from very early-stage investing. So while not a young person’s game per se, it really helps to start early. It doesn’t take that long in venture to make a decent salary. You can start there on Day 1 in a big fund, or a few years in in a smaller fund that does well.

Find Your Rev Ops Tribe: An Inside Look at Ramp 2019 from OpFocus

InsightSquared

After analyzing 2000+ projects over the past 13 years and studying our most successful clients, we’re excited to present the OpFocus T2D3 Growth Chart—a proven process for aligning a business’ functional areas in order to drive exponential growth with the big picture in mind. I remember attending the first Ramp conference two years ago. Hosted at Fenway Park, InsightSquared put forth a bold vision—to organize the revenue operations event of the year.

How Cheap a Product Can You Have And Still Have Salespeople?

SaaStr

A $2000 ACV? One question I struggled with a lot in the early days was what price points supported inside sales reps. It was clear to me that our freemium offering, priced at from $0 to $19/month, couldn’t really support a traditional inside sales team.

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Do most SaaS companies pay their sales reps their commissions on a monthly or quarterly basis?

SaaStr

Later, once you have 20–2000 sales reps, a Sales Ops department, good modeling software, etc. … It’s simplest probably to tie the commission payments to the quotas. If reps have monthly quotas, pay them monthly. If they have quarterly quotas, pay them quarterly. At the end of the day, most SaaS start-ups: start off paying monthly, but sometimes / often only once cash is actually received ; and. move to quarterly once they are at scale.

Things May Snap Back Fast. So Take Advantage Of This Crazy World Now.

SaaStr

Just last week, I introduced a $2m ARR CEO to a $2000 ARR CEO. Things are still going to get worse. But a 90% effective vaccine is a reminder that things snap back faster than we realize. E.g., trade shows are already full in China.

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The REAL Future of Work: Connecting Top CEOs of B2B Companies with Top Enterprise CXOs

SaaStr

at a Global 2000 or similar company ($300M or more in revenues, or close). . Our first two digital mega-events have collectively brought over 25,000 attendees together; from Bridging the Gap to New New in Venture , we have committed ourselves to delivering high-impact and measurable value to our community. . And we will continue to do just that!

Should Google acquire Salesforce?

SaaStr

If you also own Salesforce, and you are #3 (Google), you get instant additional cred and footprint with the Fortune 500 and Cloud 2000. Q: Should Google acquire Salesforce? Maybe. It would move the needle. A key question for the Cloud infrastructure leaders (Amazon, MSFT, and Google) is how deep do they want to go on the application layer. The PaaS layer is huge and has become a bit of an oligopoly of a Big 3. The application layer though is even larger, depending on how you define it.

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How to Generate Signals that Matter to Early Stage Investors

TechStars

Techstars is one of just a few global accelerators that have invested in more than 2000 startups, and quite a few successful investments have come out of the Techstars portfolio. Photo by Chinh Le Duc on Unsplash. Build a strong team with direct and relevant reputation. To be clear, names alone don’t matter as much as the relevance of the team members to the challenge facing your business. Example: Selling SAAS to enterprise?

5 Interesting Learnings From Slack at $700m+ in ARR

SaaStr

Most of the Fortune 500 / Global 2000 can pay $1m+ a year for applications every employee uses. Although most of us aren’t quite approaching $1b in ARR, we can still learn from the leaders. We last checked in on Slack as it was IPO’ing. Now with some time as a public company under its belt, what can we learn from them? Slack crossed $168 million in the past quarter revenue alone, growing 60%. That puts them at a $700m+ ARR run rate, with $1b ARR coming up in calendar 2020.

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Mary Grove on the origins of Google for Startups & Startup Weekend

TechStars

She joined Google when it had only 2000 employees, and by the time she left it was up to around 75,000. When I joined Google, we were about 2000 people. Brad: Going from a startup of 2000 to 75,000 employees is quite a change. From Google for Startups to Startup Weekend to Rise of the Rest and beyond, Mary Grove is passionate about community-driven change, and helping make it happen.

How to Build a $100 Billion SaaS Company

SaaStr

That’s a lot more than the 500 in the “Fortune 500” So as you begin to go upmarket, whether it is in the beginning or, like Shopify and RingCentral, later … assume you have at least 2000+ mega-accounts to target. Today, there is 1 $100B+ SaaS Company, Salesforce. Just one. We could add older companies like Adobe, Microsoft, etc. but they aren’t pure SaaS plays. Salesforce is the “only” $100b+ pure-play SaaS company.

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Try Micromilestones to Push Through Slower Growth

SaaStr

I got out of the office and closed BT, Dell, GE, Qualcomm, and other Global 2000 leaders in Year 1. When I was CEO at EchoSign, I made a big strategic error in Year 1. I set an insane plan of going from $0m to $2m in ARR in our first 12 months in business. It wasn’t because I couldn’t build a model — the model was sound.

10 Learnings From Jeff Lawson (CEO Twilio) + Byron Deeter (Bessemer Ventures): “Adapt, Plan, Deliver”

SaaStr

Their competitor bought them out in April 2000, couldn’t IPO, and was bankrupt by August. Our recent SaaStr Summit: Bridging the Gap was the first time I’ve had a chance to be a participant at a SaaStr event in a long, long time. Usually I personally have to do too much planning, moderating, etc. I learned a lot! ?? So I thought I’d share my learnings from the sessions as we put them up on YouTube.

The only event that connects CEOs with top CXOs in the Cloud

SaaStr

at a Global 2000 or similar company ($300M or more in revenues, or close). . There is not a single event in the world that brings together 15,000+ SaaS executives, founders, and VCs for three full days with 300+ sessions from the best-of-the-best on how to scale faster. . In 2020 we’re going where no tech conference has gone before.

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18 investors fueling Latin America’s SaaS superstars

SaaStock

Since 2000, it has financed more than 140 companies with a couple of billion-dollar exits, including the Brazilian app 99. Founded: 2000. As we showed you in the list of SaaS companies coming out of Latin America, the region has no shortage of SaaS superstars. How did this come about, though? What are the ingredients required to help foster such an ecosystem? A healthy availability of capital is one.

Advice from a Scientific Entrepreneur to Her 25-Year-Old Self

TechStars

I had spent a year (2000) in San Francisco at the height of the startup boom, was surrounded by a family of entrepreneurs, and was confident as I boarded the Liquidia start-up train. Contributed by Ginger Rothrock, Senior Director at HG Venture s, The Heritage Group. On my drive to work today I was listening to my favorite podcast, 20minVC.

The top SaaS companies ruling the East Coast

SaaStock

Founded: 2000. As we wrote in our launch post about expanding SaaStock New York into SaaStock East Coast , our main aim is to foster a community of top SaaS companies that spans all the way from Florida to Quebec. The SaaS industry’s beating heart will probably always be New York, and it will also be the home of SaaStock East Coast on June 4-6. However, we believe in giving the entire coastline a chance to flourish.

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SaaS Freemium Model: What Works, What Doesn’t?

Incredo

Their free plan provides a limited number of marketing channels, automation, basic templates, and includes up to 2000 contacts and 10,000 sends per month while with their paid plans you can gain access to 24/7 support, A/B testing, and more features. Do you love free stuff? Imagine that you can visit a sports complex for free but you are allowed to do it only twice a month, only for 3 hours in total and you have access to the swimming pool and cardio & strength classes only.

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Voodoo, Obsidian & Zettlekasten - A Modern Way of Taking Notes

Tomasz Tunguz

Many years ago, I used VoodooPad, a freeware Mac app in the early 2000 that also works. For many years, I wrote notes on paper using the bullet journal method. It’s a method I still highly recommend. Now that my days are spent exclusively behind a computer, I’ve been searching for the right note-taking strategy. I recognize that note-taking is like pricing strategy: you never get it entirely right, so you’re always inclined to tinker.

Has VC Become So Big It Must Be Disrupted?

Tomasz Tunguz

2018 and 2019 exceeded the heady days of 2000 in terms of dollars deployed. Nathan Heller published an article called Is Venture Capital Worth the Risk? in the New Yorker. It’s a well-researched critique of the venture industry. The key question he poses is: has the industry become so large that it needs to be disrupted? It’s a thought provoking question and a good opportunity to ask for feedback on how we can imrove.

What is the Cost of Helium 10?

SaaS Metrics

The Amazon Marketplace has been a central hub for e-commerce activities since it was launched in the year 2000. It is where sellers and customers alike converge to complete online product transactions.

How to use the V2MOM framework to align and inspire your B2B SaaS marketing team

Aaron Beashel

Be generating 2000+ engagements (likes, shares, etc) on our posts each month, and be driving 10,000+ visitors to our website from social each month. As you can see, a number of the measures are based on output (posting 300 times per month to social channels and completing experiments in 3 new channels), while others based on outcomes (2000+ engagements, 10,000+ visitors). Just a few months into my stint at Campaign Monitor, a new CEO joined to lead the company.

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Who are Asia’s SaaS VCs?

SaaStock

Founded: 2000. According to Mike Laven, CEO of Currencycloud, the one thing necessary for any company to succeed in China – or in any of the Asian countries – is to get local investment. You can read his advice and a plethora of valuable insight on Asian expansion in Notion VC’s The Journey East guide created for companies thinking of expanding to Asia. However, it was that particular advice that stuck with us.

How Great Unit Economics Enables Startups to Weather the Storm - The Story of WebEx

Tomasz Tunguz

WebEx went public in June 2000 with $8.3M To achieve that phenomenal growth in 2000, the company ramped their sales and marketing investment from $2M to $9.3M to $50M from 1998 to 2000, representing an astounding 300%+ of revenue. This dramatic sales and marketing investment generated an $80M loss in 2000, but two years later, astoundingly, the company generated $16.4M

Retention marketing strategies that boost revenue

Vero

Customer relationships are like a flywheel—they require effort to get them started, but once they’re spinning, it’s easier to maintain. Acquiring a new customer takes hard work. After all, people aren’t likely to buy from you the first time they see your company. .

An Economic History of the US in Five Stock Market Crashes

Tomasz Tunguz

The book recounts five crashes: 1907, 1929, 1987, 2000, and 2010. I’ve been searching for a book that combined the history, the people, and the emotional roller coaster of US economics. Given all that’s happening, I wondered how events today compare to other times in US history. I’ve spoken to people who lived through stagflation when interest rates were 15%. In history classes at school, I read about the Great Depression and the Roaring 20s.

7 Lessons Helping Start Pardot, SalesLoft and Calendly (Video + Transcript)

SaaStr

So Pardot, SalesLoft and Calendly, you’re thinking, “How is this random guy from Atlanta 2000 miles away at the starting floor, at the ground floor of three pretty interesting SaaS companies?” Everybody got a $2000 a year budget to go to conferences like this to do continuing education. Very simple idea, $2000 bonus for referring anybody.

Measuring Product Usage And Adoption for SaaS and Cloud – The Complete 2019 Guide

Totango

Measuring product adoption by users is critical for SaaS and Cloud companies as this is the most telling indicator of the value customers are getting from products and services. And when it comes to preventing churn and driving growth, it is necessary for companies to know which customers and users are using their products, how they are using them and to what extent.

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10 Smart Ways To Build Your Email List 10x Faster

Teamgate

Let’s say you have 2000 Facebook fans, 2000 followers on Twitter, and 2000 email subscribers. But one thing that makes email marketing so sexy is that it’s much easier to build a mailing list of 2000 people than to get 2000 new followers on Twitter or Facebook. Email is a sort of digital currency that we use to get around online. Want to download a free piece of content? Pay with your email. Want to buy a pair of shoes?

Kick ’Em to the Curb: Proactive Ongoing Disqualification For Faster Decisions, More Deals

Sales Hacker

Take their annual quota, and divide it by 2000 to get an hourly quota. Quota Annual / 2000 = $Quota Hourly. 1M/year / 2000 = $500/hour. I have bad news… Deals aren’t qualified just the one time and then locked down as golden opportunities forever more; they need to be constantly tested and retested, with the goal of exiting (either one direction or the other) as soon as possible.

SaaStr Podcasts for the Week: May 17, 2019

SaaStr

As for Godard, he founded his first business, BigMachines, in 2000, a business he scaled to $50m in revenue and over 300 people up until it’s acquisition to Oracle 11 years later for $400m. Having been a Founder through the bust of 2000, how did seeing that macro environment impact his operating mentality today? Harry Stebbings: As for Godard, he founded his first business, BigMachines, in 2000.

The SaaS Trust Crisis with Godard Abel (Video + Transcript)

SaaStr

And we have a product that G2 we call G2 Track, where with G2 Track, we’re tracking SaaS spend for almost 2000 companies now, and what’s been exciting over the last three years, we’ve really seen the number of applications they’re using grow. And from G2 track, we’ve gotten some interesting data where we’re tracking SaaS usage and spend for about 2000 companies.

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