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A Deep Dive with Jason and Pavilion on Today’s Valuations, Investing and Market Dynamics

SaaStr

So Sam Jacobs and the team at Pavilion had me join their podcast and it ended up being a pretty fun deep dive into where markets are today, the role of customer success in a tougher market, and much more. There’s concern that valuation trends seemed to mimic previous market bubbles.

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SaaS Fundraising in 2017

Tom Tunguz

When I analyzed the SaaS fundraising market in 2016 , three trends emerged. Comparing 2017 averages to seven year highs, we observe Series A, Series B, and Series Seed round sizes are effectively at their all-time highs, ignoring some minor differences. Meanwhile, round sizes swelled. billion from $4.2

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Figma's 50x ARR Multiple & What it Means for Startup Fundraising

Tom Tunguz

After the correction earlier this year, public valuation multiples had reset to those of 2017. That’s not a bear market multiple. Not too long before the public market correction, high-growth startups routinely commanded 100x ARR multiples. That year, Cisco acquired AppDynamics for 17x trailing revenue.

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The Software Startup Sectors Raising the Most Capital in 2017

Tom Tunguz

Over the last seven years, software startup investing has changed quite a bit. In 2010, classic SaaS was booming, the benefits of a subscription model were finally becoming clear to the public markets and the mass-market. Which of these markets are growing the fastest for investment dollars?

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Monetizing Analytics Features: Why Data Visualizations Will Never Be Enough

Think your customers will pay more for data visualizations in your application? Five years ago they may have. But today, dashboards and visualizations have become table stakes. Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics.

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Are Software Companies Good Businesses?

Tom Tunguz

Software companies don’t invest once in R&D & then sell copies of the software as we did in the 90s on CDs. In 2017, the industry migrated from ASC 605 to ASC 606, which are financial arcana as esoteric as it reads. For example, energy tops the list at the moment, primarily driven by the fluctuations in those markets.

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5 Charts on the State of the Seed Market in 2017

Tom Tunguz

But as the chart above shows, the median amount invested in seed rounds continues to increase at about 40% annually. This trend started in 2014 and has continued through the first quarter of 2017. The anomaly in 2017 is due to an outlier. Overall, it is difficult to paint the seed market is anything other than healthy.

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