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Pitchbook & IVP: Top Tier SaaS Companies Usually Raise at 15x ARR. It Was 114x in 2021.

SaaStr

So there are a lot of rough and arm chair metrics for fundraising in SaaS in terms of valuations. For years, the standard was “about 10x” Top tier SaaS companies would tend to raise at around 10x ARR, with ones with slightly lower growth often raising at 5x. Even If It’s Awful for Series A-E Rounds.

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SaaS Multiples Are At a 3+ Year Low. Where It Goes From Here.

SaaStr

Many SaaS and Cloud leaders are down more than 50% from their all-time highs. A Covid Hangover in SaaS stocks.’ Amazon AWS, Microsoft Azure and even Google Cloud are on fire, adding insane amounts of revenue this year. The top SaaS and Cloud leaders are even accelerating at $1B in ARR, for goodness sakes!!

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A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. net retention and CAC payback). Subscribe now What Happened in Q1?

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10 Observations from Dropbox's S1

The Angel VC

In last week's post I shared some thoughts about Dropbox and why, although Dropbox is unquestionably one of the most amazing SaaS companies ever built, I am a tad less confident in the company's long-term future than I am in other SaaS leaders such as Salesforce.com, Zendesk, or Shopify. Revenue for 2017 was $1.107B. Mind blown.

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The SaaS Trust Crisis with Godard Abel (Video + Transcript)

SaaStr

It’s 2020 and SaaS buyers are more skeptical and suspicious, more disbelieving, more unconvinced than they were in 2019. The SaaS Trust Crisis is making it harder to market and sell software and services than ever before. And what I’d like to talk to you about today is the SaaS Trust crisis we’re seeing.

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A Look Back: “SaaS Metrics Masterclass: Key Business Metrics, Pricing Strategies and Billing Models with Stripe’s Head of France and Southern Europe, Guillaume Princen” (Video + Transcript)

SaaStr

So the first question is what made SaaS so successful. If you kind of that question, thinking about the stakeholders and the decisions and companies of using SaaS products, there’s kind of three types. Customers love SaaS products and tools because it simply works. Why do developers love SaaS products? Why is that?

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How to categorize expenses in a SaaS startup

Baremetrics

Given you probably just finished closing your books for 2017, it’s a good time to introduce changes to plan for the coming year. that will fit the use case of most small to medium SaaS startups. You’ll need this to calculate your Gross Margin , which further enables you to calculate Customer Lifetime Value and other key SaaS metrics.

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