Tom Tunguz

DECEMBER 8, 2013

As for the structure of the acquisition, there’s data that can be used for benchmarking. I’ve assembled about 2400 M&A events of venture-backed technology companies since 2000 to compare the fraction of the total consideration which is stock and cash. First, 83% of these acquisitions were cash only.

Acquisition 100

Acquisition Startup Government Benchmarks 100

SaaStr

JANUARY 9, 2020

Maybe, the only place an acquisition can move the needle really. That’s really all you can ask of an acquisition. If you also own Salesforce, and you are #3 (Google), you get instant additional cred and footprint with the Fortune 500 and Cloud 2000. Who is #1 in the SaaS layer of Cloud? Salesforce. Diversity in Applications.

Sales Recruiting 244

Sales Recruiting Scale Sales Hiring Cloud 244

SaaStr

FEBRUARY 23, 2022

An acquisition well done. But at the same time, Twilio hasn’t gone radically upmarket overall, despite 30% of the Global 2000 being customers. It can seemingly scale forever. While 140% at IPO , it’s still top decile today, even adding in the lower NRR from SendGrid. #2. 240m ARR now from Segment.

Scale 198

Scale Cloud Scaling Acquisition 198

Sales Hacker

OCTOBER 19, 2018

For many years salespeople at companies like Box, Citrix, Paypal and more have relied on Zoominfo, founded in 2000, as their foundational database of millions of business profiles and contacts when prospecting and sourcing leads. To many who have used both products, this was a no-brainer and a welcomed acquisition.

Acquisition 58

Acquisition Technical Review Artificial Intelligence Sales 58

Baremetrics

MARCH 9, 2021

1 Acquisition vs. Retention 2 How to Calculate Customer Retention Rate 3 Retention Rate vs. Churn Rate 4 What's a Good Retention Rate? Acquisition vs. Retention SaaS businesses usually focus on customer acquisition. At launch, you may spend all of your resources on acquisitions. Table of Contents.

Retention 82

Retention Acquisition Churn Metrics 82

Baremetrics

NOVEMBER 2, 2021

Method 1 Method 2 Use Baremetrics to calculate all of your metrics including LTV for Shopify Partner Apps Customer acquisition cost (CAC) and LTV Knowing what your LTV is for each customer segment is critical Why is it important to segment the LTV for Shopify Customer Apps? What is a Shopify Partner App?

Payment Solutions 105

Payment Solutions Payment Methods Payments SaaS Payments 105

Chart Mogul

JULY 6, 2023

With 200 clients, their MRR stands at $2000. Following the formula above: ($500 – $600) / $2000 = -0.05% Net Monthly Recurring Revenue Churn. source: Tomasz Tunguz Expansion revenue costs less than new logo acquisition. 50 clients churn, that’s $500 lost. But 20 clients add 3 user seats; adding $600 in revenue.

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

Tom Tunguz

APRIL 10, 2016

There many ways of measuring a SaaS company’s efficiency: magic number, payback period on cost of customer acquisition, lifetime value to cost customer acquisition ratio, quick ratio. These metrics primarily focus on measuring efficiency in customer acquisition. 28 + 500)/2000 = 2.0. but the churn is off the charts.

SaaS 145

SaaS Acquisition Churn Customer Success 145

Tom Tunguz

MAY 6, 2015

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. and finally, six months before IPO to WebEx. in revenue over the previous twelve months.

Startup 100

Startup Scale Systems Review Retention 100

Incredo

JUNE 25, 2019

Some experts claim that it’s extremely harmful to the company’s ROI and increases customer acquisition cost (CAC). Freemium plans decrease customer acquisition cost (CAC) as you spend fewer resources to attract people to free access. Everything under the Sun has both its advantages and disadvantages. So freemium SaaS works: 1.

SaaS 236

SaaS Pricing Software Review Acquisition 236

Tom Tunguz

APRIL 13, 2015

Over the past 20 years, that trend has been relatively constant, with the exception of the euphoria in 1999 and 2000. The typical unicorn acquisition generates $1.9B A greater than $1B acquisition event is an enormous event for the acquiring company. in proceeds. It seems relatively constant around $2B. These are big, bold bets.

Acquisition 100

Acquisition Trends Innovation Sales 100

Tom Tunguz

FEBRUARY 6, 2016

This isn’t like 2000. The go-to-market advantages of SaaS including faster sales cycles, beneficial cash cycles, online/mobile acquisition and bottoms up adoption are real, enduring , transformative changes. in 2000 to $71.8M Another financial plan is key to weathering the environment. A different strategy is required.

SaaS 113

SaaS Startup Pricing Mobile 113

SaaStr

APRIL 2, 2023

Later on, when we thought a new acquisition of raw technology was ready to scale (it wasn’t – it is now) In 2022 (like many companies), when we misread the “COVID bump” of 2021 for a secular change in software In each case, the mistake wasn’t being aggressive. Eventually, you end up with 2000 contract types for 1000 customers.

Sales Hiring 254

Sales Hiring Scale Scaling Customer Success 254

Tom Tunguz

MAY 26, 2015

In 2000, the majority of tech acquisitions were primarily stock. The best return on capital then is acquisition or stock buy backs which hit a record high earlier this year. One company would buy another using its own shares, instead of paying for the target business in cash. In gross terms, the same story holds true.

Startup 100

Startup Acquisition Pricing Trends 100

Tom Tunguz

MAY 13, 2015

Before its acquisition, which was consummated at the highest historical multiple of any software company , Ariba was the largest independent procurement software business. in 1999, and ultimately wrote off about $1.4B, which had to be recognized in the period from 2000 to 2002. Ultimately, SAP acquired the company in 2012 for $4.6B.

Outsourced Development 113

Outsourced Development Software Review Technical Review compliance 113

Tom Tunguz

JUNE 18, 2015

In terms of exits, including both acquisition and IPO, GPL licensed projects dominate, having generated more than $6 billion in liquidity, compared to $2B for Apache projects. In part, this could be due to the fact that the GPL license predates the Apache license by 10 years, (1989 vs 2000).

Venture Capital 113

Venture Capital Software Review Acquisition Startup 113

Tom Tunguz

JANUARY 14, 2016

Starting in 2014, and perhaps even a bit before, startups have been able to raise capital at better terms than at any time since 2000. ” This change in investor mentality is catalyzed by the increasing cost of startup capital. More money raised for less dilution.

Startup 100

Startup Metrics Transportation Marketplace as a Service 100

SaaStock

JANUARY 30, 2019

To help out founders on the way, Astella Investimentos’ mentors provide guidance in the most crucial areas, such as customer acquisition, product development, and company training, as well as creating a roadmap for scalability and all stages of business development. Founded: 2000. Founded: 2008. Size of fund: R$65M.

Venture Capital 155

Venture Capital SaaS Healthcare Finance 155

User Pilot

MAY 14, 2023

Moving it from 2000 MAUs to 2500 brings the price from $279 to $349. Chameleon pricing Chameleon offers three plans : Startup, Growth, and Enterprise. When you first look at it, the price of the lowest plan looks competitive. That’s until you start playing with the slider. And you have no control over the cost.

SaaS 98

SaaS Scale Social Media Pricing 98

Tom Tunguz

MARCH 31, 2015

Of course, acquisitions will also become more common ( 2014 proved that trend ). Said another way, we would need to 2x the number of IPOs in 2000 for all of these growth stage companies to become public. It’s a very heady time for startups and investors. 231 companies raised $40M+ growth rounds in 2014.

Finance 100

Finance Startup Pricing Acquisition 100

User Pilot

OCTOBER 29, 2023

This would result in the same monthly recurring revenue of $300,000 ($150 x 2000 businesses). Customer Acquisition Cost (CAC) – this metric can help find which customer segment is the most cost-effective to acquire. This would generate monthly revenue of $250 x 1200 businesses = $300,000.

SaaS 104

SaaS Interviewing Pricing Market Research 104

User Pilot

OCTOBER 31, 2023

Pricing Starter – Free Plan Growth – starts from $995/month, depending on your demands Enterprise – starts from $2000/month and can be customized to fit your needs Best for employee user experience analytics: Pendo If you want to measure employee experience and boost their productivity, Pendo is your tool. Amplitude’s dashboard.

User Experience 99

User Experience Data SaaS Trends 99

FastSpring

FEBRUARY 13, 2020

A study by Price Intelligently found the monetization of a company can affect the growth of a company nearly four times more than acquisition. However, once you see the features of the television on the website, next to similar products worth $2000 and $5000, all of a sudden, $1000 seems a reasonable price to pay. Image Source.

Pricing 79

Pricing SaaS Acquisition Enterprise 79

Neil Patel

DECEMBER 14, 2021

A 2000 percent increase in organic traffic. We hit our cost per acquisition goal. When they came to NP Accel, they struggled to get organic traffic, relying mainly on Amazon for sales. Our team got to work optimizing their content and improving user experience. The results? Caroline Beschel, Contentful.

Technical Review 92

Technical Review SMB Sales Hiring Finance 92

Aaron Beashel

OCTOBER 31, 2016

In 3 years time, our team of 10 across inbound, paid acquisition, product marketing, PR & operations has successfully built out an optimized growth engine. Scale paid acquisition (Paul) – Find and onboard PPC agency. So for instance, here’s a shortened version of what the Vision might look like for a B2B SaaS marketing team.

Scale 100

Scale Underperforming Technical Team B2B Marketing 100

Baremetrics

AUGUST 22, 2021

Your company purchased a new laptop for $2000 in April. What are your acquisition costs? Accrual Accounting Let’s consider a few simple cash accounting examples to really understand the difference between cash accounting and accrual accounting. The store had a special deal where you do not have to pay until October. What is your churn?

Payment Solutions 91

Payment Solutions Payment Methods Payment Services Payments 91

FastSpring

OCTOBER 25, 2019

If the customer doesn’t stay with the company long enough to at least break even on acquisition costs, it can sink the business. It’s this period, the Customer Acquisition Cost (CAC) Payback Period, that companies need to keep an eye on to maintain profitability. But here’s the catch for SaaS companies. His advice?

Payments 61

Payments Scale SaaS Payments SaaS 61

Andreessen Horowitz

SEPTEMBER 25, 2023

Ali: This is why we did the acquisition of Mosaic. Right now, it’s a little bit like 2000 and the internet is about to take over everything and everybody’s super excited. Cisco in 2000, I think was worth half a trillion dollars at its peak. Can they build a better model themselves for that with their data?

AI 96

AI Enterprise Artificial Intelligence Generative AI 96

Intercom, Inc.

NOVEMBER 7, 2018

How to think about costs in your customer acquisition strategy. If all you care about is optimizing for customer acquisition, you might think all five ads were created equal and allocate your budget accordingly. Pure customer acquisition metrics are popular, but dangerously inexact tools for calibrating and scaling your company growth.

Acquisition 202

Acquisition Scale Advertising Customer Lifetime Value 202

ProfitWell

FEBRUARY 13, 2019

According to research from the Forbes Global 2000, only one in eight companies stick the landing. Podcast: Equity on Spotify This week's Equity podcast from TechCrunch covers all the biggest news in the startup world, including Spotify's acquisition of two podcast giants, platform Anchor and production company Gimlet.

Subscription 45

Subscription Payment Features Revenue Software Development 45

Mattermark

AUGUST 30, 2017

I started the company in 2000 with an investment of $15M. We are a SaaS platform, so customer retention is as important as customer acquisition since our revenue is recurrent. The end user application is a Virtual Assistant that can understand customers’ queries automatically without human intervention.

Sales 51

Sales AI Operational efficiency. Sales Funnel 51

Sales Hacker

JANUARY 29, 2018

CASE IN POINT: Acquisition needs: To grow revenue annually, SDRs need to find business for AEs who attain clients , commitment and help them on-board to the point they can use the service. In this model, you may see 2000% growth in an account. This high- velocity creates a “manufacturing line” approach. Scale the Recruiting.

Sales Recruiting 74

Sales Recruiting Scale Sales Hiring Sales 74

Brian Balfour

JULY 12, 2017

Don't have team members focused on user acquisition and team members focused on product in silos from each other. In the early 2000’s desktop web portals were the major channel. You should seek out other channels in case product channel fit breaks and need to transition to a new one (more on this below).

Strategy 90

Strategy Growth Hacking Mobile Product Marketing 90

Natalia Luneva

DECEMBER 17, 2020

If you were building a company from 2000 to 2015, things were amazing. There are so many competitors out there, even if they’re not direct competitors, so your customer acquisition costs (CAC) are up about 70%.

Pricing 80

Pricing Strategy SaaS Software Review 80

Sales Hacker

FEBRUARY 11, 2019

A few months ago we wrote about Zoominfo’s acquisition of Datanyze in an effort to strengthen its sales intelligence engine. DiscoverOrg, a best-in-class B2B contact database founded in 2007, acquired Zoominfo, another best-in-class B2B contact database which was founded in 2000, in early February. This is a little different, though.

Acquisition 55

Acquisition Technical Review Machine Learning Artificial Intelligence 55

SmartKarrot

OCTOBER 7, 2020

No doubt, new customer acquisition is still a major need for any sustainable business, retaining existing ones is a new need specific to the SaaS industry. Few of their customers downgraded which resulted in a loss of $2000 and another $1000 in churn. So, NRR = (50,000 + 5000 – 2000 -1000) / 50,000 = 104%.

Retention 10

Retention Revenue SaaS Software Review 10

Kellblog

DECEMBER 27, 2021

I watched Oracle aggressively grow to $1B in revenues, flail several times trying to organically expand into applications, give up on building applications and instead acquire them, inexplicably get into hardware with the acquisition of Sun, and eventually plateau at $40B, effectively having become IBM in the process.

Blockchain 143

Blockchain Technical Review Venture Capital Sales Hiring 143