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SaaS Funding Napkin, the 2017 edition

The Angel VC

In less earth shattering news, the fact that it's 2017 also means that my "SaaS Funding in 2016" napkin needs an update. As a reminder, in the original post I tried to give a "back of a napkin" answer to this question: What does it take to raise capital, in SaaS, in 2016? Enough words. Here's the 2017 SaaS Funding Napkin!

SaaS 262
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Kinzen’s CEO Mark Little on the fight against disinformation

Intercom, Inc.

The algorithms and business models behind these platforms were being weaponized to produce and disseminate propaganda and conspiracy theories. To tackle the challenge, they’re using a combination of machine learning and human analysis that can scale the response to a global level. This is being turned into a weapon.”

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We Haven’t Hit Peak SaaS

Hitenism

If Mixpanel stayed on track, it would have had 100 sales reps by 2016. Instead, the company laid-off 18 people at the beginning of 2016—mostly from sales—and they’re not alone. In March 2016, it ultimately became clear that we were over-invested in some parts of the business and as a result let go of 10% of our employees.”.

Scale 147
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State of the Cloud 2019: Europa Edition with Alex Ferrara, Bessemer Venture Partners (Video + Transcript)

SaaStr

You know how many seats your customers are using, how frequently they’re using them, when they churn, what features they’re using and so forth. The first I want to talk about is this theme of robots to the rescue.

Cloud 100
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In a world. where the subscriber is the center

ProfitWell

Recurly—provider of enterprise-class subscription billing management for thousands of businesses worldwide—raises $19.5 million to boost subscription revenue with machine learning. Now we understand how Beyond Pricing low-key raised $2 million in 2016, and now announces a crazy $42.5 million Series A. Simply, genius.

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The Birth of Freemium

ProfitWell

In that one sentence Dyson created the most prolific business model of the next two decades: freemium. Wilson calls it his favorite business model, and points to examples such as Skype, Flickr, Trillian, Newsgator, Box, and Webroot as paradigms. Do we have a word for this business model?

Pricing 41
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Has Your SaaS Hit A Growth Ceiling? 12 Ways To Reignite Growth

Chargify

Floyd points out that by 1969 Sears was the largest retailer in the world, but 2016 marked “the sixth year of a $10.4 This can be a result of “promote from within” policies, that while well intentioned, “can accelerate growth in the heady early days of executing a successful business model. Communicate with your team.

Scale 53