The Angel VC

MAY 31, 2016

So what does it take to raise money for a SaaS company in 2016? But they are exceptions, not the rule. According to this analysis of Tomasz Tunguz , the median SaaS company raises $88M before IPO.

SaaS 193

SaaS Finance Mobile Enterprise 193

SaaStr

MARCH 31, 2021

from 2015 to 2016 … and then exploded: UIPath History. 2016: $3.5m But since the effective NRR is still 145%, ARR-style metrics still work. Top 50 customers grew bookings 81x since 2016, and all 2016 customers together grew 57x. These 2016 customers really leaned in on UiPath. 2014: $500k rev.

Outsourcing Services 357

Outsourcing Services Outsourced Development Payment Features Cloud 357

SaaStr

JUNE 10, 2022

Up today: a 2016 interview with Harry Stebbings and Flexport Founder and CEO, Ryan Petersen. In October 2016, Flexport was a single-product company with a valuation of 300 million. In 2016, Flexport CEO Ryan Petersen sat down to share his thoughts about running a successful tech company on the SaaStr podcast. The Value of NPS.

Interviewing 193

Interviewing Metrics Churn Retention 193

Tom Tunguz

NOVEMBER 18, 2021

Founded in 2016, Samsara has grown explosively from $119.9m The company’s metrics all recorded positive gains including gross margin moving from 60% to 70%, which is impressive for a business providing hardware. Estimated metrics using company data, but not reported by the company explicitly. Revenue, $M. Gross Margin.

CTO Hire 342

CTO Hire CTO Coach Benchmarks Scale 342

SaaStr

MARCH 16, 2021

We’ve used various bits of the BVP Nasdaq Index and metrics since they launched a few years ago to highlight trends in SaaS and Cloud. This week even after a pullback, public SaaS and Cloud companies are up an eve 1000% (!) since 2013. Yes, the markets have retreated a bit from their all-time highs. But does it even matter?

Cloud 295

Cloud SaaS Trends Metrics 295

SaaStr

JANUARY 11, 2023

Profitable and capital-efficient is back in fashion: (Still, I’d argue it should be worth much more with these metrics, especially given that it has $212m in cash on its balance sheet). But importantly, it’s raised its ACV 4x since 2016. 5 Interesting Learnings: #1. 3,245 Customers, Up 23% — While ARR is up 40%.

Scale 319

Scale Pricing Scaling Enterprise 319

Tom Tunguz

NOVEMBER 8, 2015

During the same period, forward revenue multiples, the primary metric used in public markets to value software companies, has fallen from 8.1x What does this mean for 2016? A path to short term profitability will be much more important in 2016 than before. As of Friday, that same basket of companies is worth $176B.

Startup 100

Startup Software Data Acquisition 100

Tom Tunguz

OCTOBER 18, 2020

But investors in private companies use a different metric, enterprise value to forward annual recurring revenue (ARR).The The chart above shows the median enterprise value to forward ARR value since 2016. Most high-growth software investors value public companies on enterprise value to forward revenue multiple.

Software Review 363

Software Review Finance Enterprise Acquisition 363

Tom Tunguz

FEBRUARY 20, 2017

In 2015, Mulesoft grew 91% and in 2016 the business grew 71%. Second, new customer contract value has more than doubled from $77,000 in 2014 to $169,000 in 2016. This dollar retention metric compares favorably to other public traded software companies like Box and ServiceNow, whose dollar retention is in a similar ballpark.

Metrics 100

Metrics Benchmarks Scale Finance 100

Clouded Judgement

NOVEMBER 3, 2023

Some of these drops rival one of the worst ever software earnings reaction of Tableau in 2016! This is very reminiscent of the Tableau drop in 2016. So if you’re not valued like a growth stock you get valued more like a value stock - and the valuation metrics there look more like FCF or PE multiples. Bill.com dropped ~30%.

Software Review 161

Software Review Cloud Software Azure 161

Tom Tunguz

JANUARY 1, 2017

Let’s look at some of the key metrics and then compare AppDynamics to NewRelic, a close competitor which went public in late 2014. The company provided full year data through 2016. in revenue through 2016. in cash in 2016 on $150M in revenue, or about 28% of revenue. AppDynamics generates revenue three ways.

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Benchmarks Metrics Software Review SaaS 100

SaaStr

SEPTEMBER 23, 2022

To illustrate the turbulence, consider the following metrics: The BVP NASDAQ Emerging Cloud Index (the public benchmark of software performance) has contracted by more than 40%. Cloud 100 multiples have fallen in 2022 –– ARR multiples rose nearly fourfold from 9x in 2016 to 34x in 2021 and down to 30x in 2022.

Cloud 215

Cloud Trends Benchmarks Business Model 215

SaaStr

DECEMBER 3, 2021

A lot has changed since Harry Stebbings launched podcast #001 2016 with Tiago Paiva, CEO of now decacorn Talkdesk, but SaaStr is still on the same mission. With 500+ episodes and almost 5 years behind us, we thought this would be a fun time to share the Top 25 episodes of all time. 1 SaaStr 221: HBS Sr. . #4 1 SaaStr 221: HBS Sr.

Scale 184

Scale Sales Hiring SMB Benchmarks 184

SaaStr

JUNE 5, 2020

I argue that standard saas metrics make it possible for founders to scale using debt capital (production capital thats cheaper) instead of solely relying on venture capital (financial capital thats more expensive). . As SaaS Metrics Become Standardized, Banks Want In On The Action. Things started changing in 2011. Gross margin 85%?

Venture Capital 211

Venture Capital Technical Review SaaS Banking 211

SaaStr

MAY 19, 2023

You can see here multiples are touching the lows of early 2016 and are even lower than 2015 and those early days of SaaS. Don’t use “quarterly MRR”or other weird metrics. Seed is slowing down last, but it is slowing down. Especially as Seed VCs are getting more and more nervous that no one is going to write the next check anymore.

New CTO 227

New CTO CTO Banking Cloud 227

SaaStr

DECEMBER 2, 2021

A lot has changed since 2016, but SaaStr is still bringing you the best advice from industry leaders, and we don’t plan on stopping. 23 SaaStr 179: What It Means To Be An ARR First SaaS Company, The Most Commonly Misunderstood SaaS Metrics & Why Renewals Does Not Mean Happy Customers with Dave Kellogg, CEO @ Host Analytics. #22

Scale 220

Scale Benchmarks Enterprise Leadership 220

SaaStr

SEPTEMBER 22, 2021

IPO behind them, we can take a look behind its metrics. The company exploded from 3,000 restaurant locations in 2016 to 40,000 in 2020. . — Ari Levy (@levynews) September 22, 2021. Toast … we’ve all used it in a restaurant or 10 by now. Now with a $30B (!) But it took 6+ years to get there.

Payment Methods 246

Payment Methods Payment Solutions Payments Cloud 246

Tom Tunguz

NOVEMBER 9, 2015

These metrics simply unheard of. If we project the company to grow at 45% in 2016, a similar growth rate to 2015, then revenues will total about $460M. They also imply a sales efficiency, normally in the 0.8-1.2 range of 2.5 Forward Revenue Multiple Enterprise Value, $B. 10.5x $4.8. 11.5x $5.3. market cap.

Benchmarks 115

Benchmarks Metrics Venture Capital SaaS 115

SaaStr

JULY 21, 2020

You should already know your MRR, cash burn, NPS, all your key metrics almost immediately after the month ends. List your top few key metrics (MRR, growth, cash burn, NPS, etc). But there are 1,000+ new firms since 2016 alone. This is your best hack. The key here is not to spend a ton of time on it. So send it out!

Sales Recruiting 319

Sales Recruiting New CTO Scale CTO 319

Tom Tunguz

JULY 22, 2017

The chart above shows the compound annual growth rate of venture investment rounds A through D in ten fastest growing venture markets plus the US from 2010-2016. The missing piece of data concerning round size is the valuation metrics. invested in 2016, with a growth rate of 19%. Ireland follows at $16.5M I’m not sure.

Venture Capital 187

Venture Capital Development Marketing Investment 187

SaaStr

SEPTEMBER 27, 2023

In 2016, Janz did research and tried to answer this. Companies need to pay more attention to factors like: Burn multiple CAC efficiency The most important metric right now is likely the burn multiple. One metric to look at is the CAC payback period — how long it takes to recoup a dollar.

AI 188

AI Underperforming Technical Team Cloud Strategy 188

SaaStr

FEBRUARY 2, 2022

2016’s Lesson from Quip. While I initially found myself fiercely defending PLG (self-service, bottom-up, viral growth models), my beloved metrics (costs for signup, traffic conversion rate, etc.) Whereas the old mantra from VCs on the board was “spend until you break the model,” that model began to break down at just $101 million.

Sales Hiring 208

Sales Hiring Scale Enterprise Mobile 208

Upscope

JANUARY 10, 2019

SaaS metrics like LTV to CAC ratios are simpler to understand when you see real examples and why they're important. Below we breakdown the metrics of one company and show you metrics for a number of others. Buffer's metrics Captured on 5th April 2016 via former co-founder of Buffer , Leo Widrich. Revenue churn?

Metrics 40

Metrics SaaS Underperforming Technical Team Churn 40

SaaStr

JULY 7, 2021

rates them on 3-Year Growth – a slightly strange metric for start-ups at all different stages), for SaaS and SaaS-ish startups: [note, the higher they are on the list, the faster they are growing on a % basis YoY]. #7 Where it Went: IPO’d in 2013, hit $250m ARR by 2016, a cquired for $1.8b in 2011 GAAP revenue. 78 Marketo.

SaaS 263

SaaS Technical Review Scaling Software Review 263

SaaS Metrics

AUGUST 28, 2022

Founded in 2016 by Eynat Guez, Ofer Herman, and Ruben Drong, Papaya quickly raised around $444m and. The post SaaS review: Papaya Global first appeared on SaaS Metrics.

SaaS 52

SaaS Cloud Metrics 52

SaaS Metrics

MAY 13, 2022

Equipment manufacturers and suppliers must register with PEPPOL (Pan-European Public Procurement On-line) by September 2016 to comply with the Department of Health’s e-procurement strategy. first appeared on SaaS Metrics. While some retailers appear to. The post What Need to Work With a Peppol Access Point?

Payment Features 52

Payment Features Metrics Strategy SaaS 52

SaaStock

FEBRUARY 14, 2019

In 2016, André joined Superlógica Tecnologias, a management system designed to service small businesses with a recurring revenue model. In 2016, he co-founded Meetime, an Inside Sales Strategies company and now serves as its CMO, building a powerful branding and content creation operation. In 2016, he joined ServiceNow as Global VP.

Technical Review 207

Technical Review Scale Entrepreneurship Sales Hiring 207

SaaStr

FEBRUARY 10, 2022

But Neo4j’s products also managed to draw in enthusiastic users from other communities, like when we released a graph algorithm package in 2016. Furthermore, a transition to the cloud can open up an entirely new world of metrics, like memory and CPU consumption, which you never had before. Pro Tips for Modern Cloud Infrastructure.

Cloud 178

Cloud Venture Capital Social Media Technology 178

Tom Tunguz

FEBRUARY 24, 2016

At SaaStr 2016 and SaaS Office Hours in New York , I shared an analysis of the fastest growing SaaS companies over the last 3 years. That figure has grown each year by 80%, and for the investments that closed in early 2016, that figure reached $163k. Consequently, there are three major themes of 2016 for the Series A SaaS market.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

Tom Tunguz

DECEMBER 6, 2016

2013 was a banner year, followed by a steep drop in 2015 and a slight recovery in 2016 at 11.5x. 2016 has been a year of public companies acquiring other public companies; and private equity firms taking private large software companies. EV/Revenue multiple is a composite metric.

Acquisition 100

Acquisition Startup SaaS Benchmarks 100

Tom Tunguz

SEPTEMBER 9, 2018

To put this company’s exceptional success in context, I plotted their metrics alongside Mulesoft, another enormously successful open source company that Salesforce acquired for $6.5B. In the charts that follow, I have plotted Elastic’s metrics the two years before their IPO, marked as -2 and -1.

Scale 125

Scale Enterprise Metrics Revenue 125

User Pilot

JUNE 19, 2023

In this article, we will discuss the most common B2B SaaS conversion rate metrics and their benchmarks. Here’s a list: Website visitor-to-lead conversion rate benchmark This metric indicates the proportion of visitors to a website that is converted into leads in a given period. So, what’s the benchmark for this critical metric?

Benchmarks 98

Benchmarks B2B SaaS Payments Payment Methods 98

Tom Tunguz

JUNE 12, 2016

In the 2016 acquisition market, the median acquisition multiple is 7.8x With nearly $40B in SaaS M&A so far this year, 2016 is shaping up to be the best year for SaaS M&A ever. As the chart above shows, the highest correlated factor to acquisition multiple in 2016 is cash flow margin. trailing 12 month revenues and 6.7x

Acquisition 100

Acquisition Startup Banking Benchmarks 100

OpenView Labs

JULY 29, 2019

Today, good pricing comes down to finding the right value metric and using that as the basis for your billing structure. That’s why they use the list size as a value metric to adjust the price for larger customers. 3 steps to build your pricing around a value metric. Lincoln Murphy (@lincolnmurphy) May 4, 2016.

Pricing 40

Pricing Churn Metrics Sales Hiring 40

Baremetrics

SEPTEMBER 15, 2021

Baremetrics provides an easy-to-read dashboard that gives you all the key metrics for your business, including MRR, ARR, LTV, total customers, and more. Since 2013, Microsoft has released two new versions, Office 2016 in 2015 and Office 2019 in 2018. Unlike Microsoft Office 2016, Microsoft 365 is released under an annual license.

Payment Features 95

Payment Features Payments Payment Solutions Subscription 95

Chart Mogul

APRIL 25, 2019

First, I created a cohort for each year we’ve been in business since 2015 and the result was this MRR breakdown: Next, I looked at the same segmentation in our cash flow chart: We talk a lot about SaaS and subscription metrics — but this is cash received. 2015 (in royal blue) contributed the second biggest chunk.

Subscription 90

Subscription Payment Features Retention Startup 90

Tom Tunguz

MAY 3, 2016

Below, the table shows a comparison of the key operating metrics of each business and the ultimate acquisition multiple. But I do believe that they are the harbingers of a very active software acquisition market we’ll see in 2016 and 2017. OPower 149 15.5%

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Startup SaaS Acquisition Construction 100