Tom Tunguz

APRIL 1, 2019

In 2014, I published a post called Do Startup Require Less Capital to Succeed than 10 Years Ago ? In 2014 we saw increasing efficiencies over time, which was very exciting because it reaffirmed the efficiency of SaaS go-to-market. And that’s borne out in the data. The chart above updates that analysis. of revenue at IPO.

Startup 279

Startup Software Review SaaS Acquisition 279

Tom Tunguz

MAY 23, 2021

2014: Alibaba. The data is a lagging indicator, but it does show how quickly and how significantly pricing has skyrocketed, the effect of evolution in both supply and demand in the venture capital marketplace. 3 of the 11 years recorded 40%+ growth. 3 of the years saw declining prices. 2012: Facebook.

Software Review 364

Software Review Venture Capital Cloud Pricing 364

Tom Tunguz

OCTOBER 7, 2019

We’ve all seen the data on the average increases in round sizes over the last four or five years. The top left chart shows a $1M round had about 41% market share in 2010; that grew to about 54% in 2014; now it has fallen to 35%. Today, the first institutional round of capital is that $3-5M in 54% of cases, up from 39% in 2014.

Marketing 247

Marketing Benchmarks Trends Startup 247

Tom Tunguz

JUNE 5, 2021

The y-axis tracks enture capital investment by year and the year of the data point resides in the reddish circle. Over time, rates decline and then in the 2012-2014 era, they begin to surge upward culminating 6-8 years later at the top-left of the chart and $200b+ invested.

Venture Capital 363

Venture Capital Marketing Government Investment 363

Tom Tunguz

JANUARY 4, 2019

But the average MRR has increased substantially from the last time I analyzed the data. First, the science of building SaaS companies is better understood today than in 2014. The usual caveats to this data analysis apply. These figures are larger than I expected. To be fair, 22% of companies raised at $0 in ARR.

Benchmarks 261

Benchmarks Startup SaaS Data Analysis 261

Tom Tunguz

NOVEMBER 8, 2015

But compared to 2014, 2015 was a meager year for startups looking to go public or be acquired. In 2014, $11B of disclosed M&A occurred. However, in 2015 the median acquisition was worth $410M, compared to $193M in 2014, indicating that buyers are not buying as frequently, but when they are, they spend more.

Startup 100

Startup Software Data Acquisition 100

SaaStr

MARCH 11, 2022

Put differently, if you look at multiples of revenue for top SaaS and Cloud companies above from 2014-2022, you could come to one of (at least) two conclusions today: Conclusion #1: Q2’20-Q4’22 Cloud Revenue Multiples Were a Covid Anomaly. This version of the BVP Nasdaq Index illustrates the question.

Scale 256

Scale SaaS Cloud Pricing 256

Tom Tunguz

MARCH 1, 2020

It includes a basket of all the next-generation software companies since 2014.* Note, I have changed my data source for forward multiples which means that some of these numbers are not the same as in previous charts. Let’s double-click on the impact of last week on the valuation environment.

Software 327

Software Travel Startup Technology 327

Tom Tunguz

JUNE 11, 2019

Tableau sells data visualization software and the team has built an incredible business. We analyzed the S-1 in 2014. SiSense acquired Periscope Data. I’ve included only companies who have disclosed their financials in this data set. Yesterday, Salesforce announced it would acquire Tableau for $15.7B.

Acquisition 271

Acquisition Pricing Startup Software 271

ReSci

MARCH 13, 2015

For 2014, it was the data scientist. Data mining and statistical analysis hit the top of the charts. We live in an increasingly data driven world,…. The post Why the hottest job of 2014 is the marketer’s secret weapon appeared first on ReSci. 2013's hottest career was the social media marketer.

Social Media 40

Social Media Data Marketing 40

IT World

SEPTEMBER 17, 2021

US companies alone raised a record $435 billion in stock sales in 2020, with more than a quarter of that figure coming from IPOs — far outstripping 2014's mark of $279 billion, according to data compiled by Bloomberg. The vast majority of those new listings defined themselves as technology companies.

Technology 130

Technology Data Sales 130

Tom Tunguz

JUNE 11, 2017

A year later, those trends have continued to converge, and SaaS valuations have resurged, reaching their highs of the 2014-2015 boom. Assuming investors purchase the same ownership stake for their investments in each of these rounds, this data implies the market is paying premium valuations again for SaaS companies. billion from $4.2

Venture Capital 203

Venture Capital SaaS Trends Startup 203

SaaStock

MARCH 26, 2019

Founded : 2014. Founded : 2014. Founded : 2014. They use big data and machine learning to understand what each visitor wants and automatically change the banners, product recommendations and even on-site notifications. Founders : Drew Beaurline and Patrick Albert. Based in: Belo Horizonte. Funding to Date : $636K.

Startup 210

Startup Artificial Intelligence SaaS Construction 210

SaaStr

JUNE 30, 2023

Braze didn’t find a true product-market fit until around 2014-2015. When the market is immature, and you’re selling to data-driven marketers who don’t exist yet (as was the case for Braze), growth teams without budgets, and you’re a small startup with limited resources, the supply curve is hard to access.

Scale 187

Scale Mobile Venture Capital Scaling 187

Tom Tunguz

JULY 15, 2017

If we plot San Francisco startup fundraising activity through the first six months of the year, rounds A through D, beginning in 2010, we see the surge during the 2014-2015 heyday and then a reversion to an elevated mean in 2016 and 2017. The startups raising hundreds of millions or billions might bias the data, I thought.

Investment 203

Investment Startup Venture Capital Trends 203

IT World

FEBRUARY 7, 2023

The company has been collecting data on corporate diversity and inclusion since 2014 and has noted an increasing disparity between the financial performance of more diverse organizations and that of less diverse companies. report “ Diversity wins: How inclusion matters.” To read this article in full, please click here

Branding 67

Branding Data Business 67

SaaStr

FEBRUARY 2, 2020

I thought it might be helpful and fun to share some of the demographic data of who’s coming to the 2020 SaaStrAnnual.com on March 10-11-12 in the SF Bay Area. I didn’t even think there were this many SaaS CEOs when we started doing meet-ups in 2014 and the first Annual in 2015! But who comes?

Cloud 228

Cloud Trends Engineering SaaS 228

Tom Tunguz

JANUARY 4, 2017

The data indicates that it is certainly reverting to the mean after two record years in 2014 and 2015. Let’s take a look at the Crunchbase data for US startups. Seed rounds have seen the greatest growth since 2010 from approximately 1000 rounds per year to more than 4000 rounds per year in 2014.

Finance 100

Finance Startup Investment Pricing 100

Chargebee

JUNE 22, 2023

Data analytics giant Comscore lost over 90% of its valuation since its accounting fraud came to light.

Revenue 52

Revenue Data 52

Tom Tunguz

OCTOBER 12, 2015

While the attitudes may be changing, the effects haven’t yet revealed themselves in the data. In fact, there was only one month in 2015 that saw fewer megarounds than 2014 - the month of April. In this case, two months in 2015 are smaller than their counterparts in 2014. in July 2014. 2014 191 24.0.

Technical Review 100

Technical Review Finance Investment Startup 100

Tom Tunguz

MARCH 4, 2015

After writing about the Seed Market in 2015 , I wondered whether I could find some data to support Sam Altman’s observation that acquihires have fallen in frequency over the past year by 66-75%. There is no perfect data set on acquihires because many of these transactions are never announced. Year 2010 2011 2012 2013 2014.

Startup 113

Startup Trends Marketing Technical Review 113

Tom Tunguz

MARCH 19, 2018

The data suggests that these acquisitions will be completed at some of the highest multiples of the last decade, especially for the fastest growing companies. Growth Rate. Gross Margin. Year of Acquisition. Enterprise Value. EV/TTM Rev. Salesforce/Mulesoft. SAP/Concur. SAP/SuccessFactors. Salesforce/Demandware. Oracle/Eloqua.

Acquisition 189

Acquisition Marketing Enterprise Revenue 189

Tom Tunguz

AUGUST 26, 2019

This has more to do with the trend that current IPOs tend to be around $200M and New Relic went public in 2014, when the median revenue at IPO was closer to $100M. This average and the data points above about the number of $100k and $1M accounts suggests DataDog serves customers across the spectrum. NewRelic filed with about $85M.

Metrics 189

Metrics Benchmarks Scale User Experience 189

User Pilot

JUNE 13, 2022

The Signal by Mixpanel is all about using data to build better products and help you convert, engage, and retain more users. Their focus is on providing data-driven strategies, not just fluff and guesswork. How to Build a B2B SaaS Product Development Strategy Using Data. All the blog posts are full of data and resources.

Venture Capital 52

Venture Capital SaaS Data Scale 52

OPEXEngine

DECEMBER 21, 2021

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. Reading these data, the natural question is what is an accurate forward multiple for a company ? Correction Year.

SaaS 52

SaaS Cloud Enterprise Software 52

Tom Tunguz

MARCH 1, 2015

But what of 2014? 2014 1265 1272 1006. 2014 saw 18% fewer investments, but an equal amount of investment at $1.3B. The table above uses Crunchbase data as a proxy for the seed market. Round sizes have increased in most fundraising stages , likely because 2014 was a decade high year for VC fundraising.

Investment 100

Investment Marketing Finance Acquisition 100

ReSci

MARCH 23, 2015

Big data was the buzzword of 2014. Data mining was the top skill of 2014 on LinkedIn. With data being collected in every shape and form, how can it be best presented? The post Get a sneak peek at the Data Viz Summit appeared first on ReSci.

Data 40

Data 40

How To Buy Saas

FEBRUARY 29, 2024

8 Best SaaS Development Companies in 2024 Clockwise Software Rate: $50 – $99 / hr Employees: 50 – 249 Founded: 2014 This Ukrainian company from Dnipro is one of the leaders in JavaScript development. Businesses of any size and industry can find reliable SaaS development partners.

DevOps as a Service 40

DevOps as a Service Development Technical Review Blockchain 40

Tom Tunguz

MARCH 31, 2015

In fact, the data proves the point. In 2014, there were 251 working days and 211 $40M+ growth rounds - just about one per day. In contrast to the frenetic private market, there were 15 US IT venture-backed IPOs with offerings greater than $40M last year, slightly more one IPO per month in 2014.

Finance 100

Finance Startup Pricing Acquisition 100

Tom Tunguz

JUNE 20, 2016

In 2014, that figure fell to 1186 and in 2015, we count 481. Why does Crunchbase data indicate this decline? First, there might be a few data issues in the most recent years. But if we assume the 2014 cohort is accurate, then the data suggests an 18% drop in software company formation. Why could this be?

Venture Capital 100

Venture Capital SaaS Machine Learning Artificial Intelligence 100

Tom Tunguz

MARCH 5, 2015

In 2014, for the first time in four years, median Series A round size have increased. When we analyzed the data last year, this wasn’t the case. But in 2014, the median Series A hit $6.8M, increasing 14% over the trailing three year average. But 2014 was the first year in which the Series A round size grew.

Startup 100

Startup Investment Pricing Data 100

Tom Tunguz

DECEMBER 31, 2017

The book illuminates the history of scientific management and Taylorism , and supplies evidence that much the original data underpinning these theories was fabricated. In 2014, Jill Lepore wrote a polemic arguing Clayton Christensen’s disruption theory wasn’t supported by the examples in his book. I found other cases.

Machine Learning 188

Machine Learning Artificial Intelligence Trends Startup 188

Tom Tunguz

OCTOBER 7, 2014

So I thought I could do it with data. Above, I’ve plotted the mean and median investment amounts for Series As, Bs, and Cs from 2006 to through September of 2014 in the US, as reported by Crunchbase data. The data reveals three trends. In fact, the median Series A in 2006 equals the median in 2014: $5M.

Venture Capital 100

Venture Capital Startup Marketing Trends 100

Tom Tunguz

APRIL 14, 2014

In fact, the 2014 cohort of public SaaS companies spend more on sales & marketing and engineering than previous IPO cohorts. Because startups are going public earlier and therefore release information about the earlier years of the company, we have more data on the newer cohorts. 1998 34 11.

Engineering 100

Engineering Investment Sales SaaS 100

Tom Tunguz

AUGUST 20, 2017

In 2014, the average software company traded at 7.7x Overall, the data suggests that the median forward multiple of 5.5X This public market data mirrors to some extent of the behavior of the private market. We’ve seen quite a bit of volatility in the valuations of publicly traded software companies over the last 5 years.

Marketing 178

Marketing SaaS Software Revenue 178

Tom Tunguz

JUNE 23, 2018

In the meantime, the number of series As has only declined 20% from its high, remaining relatively stable from 2014 through 2018. But that’s not reflected in my data. The increase in seed round sizes explains about 80% of the lengthening time between seed and Series A (R^2 is 0.78).

Machine Learning 189

Machine Learning Artificial Intelligence Startup Investment 189

Tom Tunguz

JULY 28, 2015

Using Crunchbase data, I analyzed BTC investment patterns over the past 4 years. In 2014, total investment spiked to more than $3.5B, and through June 2015 Bitcoin startup have raised more than $4B. This data implies 2015 should be the best year ever for Bitcoin investment. How much is going into Bitcoin companies.

Investment 100

Investment Blockchain Innovation Startup 100