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Redpoint: SaaS Companies Are Now Worth Less Than Their Historical Norms

SaaStr

I like it because it models out two scenarios — one if the current downturn is like 2008, another if it’s like 2000. Even with just draw-dropping growth from SaaS and Cloud leaders. Redpoint looks at What If this downturn is like 2008, or even 2000. Personally, I think it this contraction be less severe than either.

SaaS 258
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The Fundraising Market Two Quarters into COVID

Tom Tunguz

We reviewed the data in May and compared it to the effects of the financial crisis in 2008 on startup fundraising. As a reminder, 2008 saw a 40% reduction in venture dollars invested in startups. These corrections match 2008. It took about six to eight quarters to return to normalcy. But the patterns this time are different.

Marketing 363
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Doubling Down: Harpinder Singh, Partner at Innovation Endeavors

SaaStr

I started both my companies in downturns, post-2000 and post-2008. What’s your pulse check on the venture markets right now, today? This is an incredible time to build companies. The innovations and technological breakthroughs we’re seeing are amazing, and I am confident we will see some important companies come out during this time period.

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Doubling Down: Peter Specht, Partner at Creandum

SaaStr

Some more recent commitments like Modal (high performance cloud), Cast AI (DevOps automation platform), Betterstack (see inside any tech stack and resolve incidents) or Abacum (financial planning & accounting platform) give a hint on what we’re intrigued by at the moment. What’s an “exit” you’re particularly proud of?

Payments 224
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Not dead yet: Windows Server 2008 users have options

IT World

Windows Server 2008 has reached end of life, which typically means upgrading to a newer version. But CIOs have options beyond updating to a more recent iteration of Windows server, including staying put or migrating to the cloud. If you still have workloads running on Windows Server 2008, you’re not alone.

Cloud 56
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The Fifth SaaS Correction

Tom Tunguz

Also, 2014 to 2016 saw a 57% reduction in multiples and of course after 2008. Cloud companies' fast growth multiplied by an appreciation in multiples has pushed valuations higher since 2014. Since 2016, public software has witnessed four corrections. Today, we’re in the midst of the fifth. What a growth investor ought to expect.

SaaS 348
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Seeking a Distribution Advantage with AI

Tom Tunguz

In the last five major cycles (internet, social, mobile, cloud, web3), startups seized the new technologies of the era to create a distribution advantage. The iTunes store launch in 2008 enabled Uber. Great companies transform a technology innovation into a go-to-market advantage.

AI Search 165