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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. Startups operate in newer markets where pricing standards haven’t been set. But throughout this turmoil, startups must adopt a process to craft a good pricing strategy, and re-evaluate prices periodically, at least once per year. AWS, Twilio, Heroku, etc.

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How to Win Big by Serving High-Growth Startups with Zendesk’s Head of Startups

SaaStr

ARR, Zendesk today gets 14% of new business from startups. On top of that, if you look at their top accounts globally, 33 of the top 50 customers by ARR are startups. This is where they started, but startups weren’t adopting the product as much with a discount, and there was a lot of conflict with the sales team. A free term.

Startup 257
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Pitchbook & IVP: Top Tier SaaS Companies Usually Raise at 15x ARR. It Was 114x in 2021.

SaaStr

Average asks and multiple for the very, very SaaS companies went up 700% in the Boom from late 2020-late 2021. We’re never “going back” to how things were in late 2020 and 2021. Even If It’s Awful for Series A-E Rounds. And then … came crashing back to earth. It Was 114x in 2021.

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Why I’m Back to the SF Bay Area Full Time

SaaStr

YCombinator is having a renaissance, with 4 batches of 100s of top tier startups being hatched in Dogpatch in SF. But SOMA and much of the financial district are still awful. Before March 2020, you could reach out your window and see a dozen leading SaaS execs. It lacks the density of pre-March 2020, that’s underappreciated.

AWS 286
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What’s New at Google Cloud with CMO Alison Wagonfeld

SaaStr

Alison brings the perspective of all sides of a startup, from investing to SaaS to Cloud. Pursuing Two Different Segments: The Tale of Startups vs. Enterprise From a marketing perspective, the GTM marketing position and product market messaging differ between Google Workspace and Google Cloud.

Cloud 303
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What Are Public SaaS Companies Taken Private At? 7.7x ARR On Average Per SaaSomomics

SaaStr

The startup I invested in that were acquired by PE in the 2020-2021 Boom were acquired for 8x in one case, 12x in another, and 15x in a third. So what do they pay on average? Well, certainly it exploded in 2021, in my portfolio at least, if perhaps not as dramatically as in the public markets. You might be worth less ?

AWS 313
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Alteryx, ZoomInfo Have Blow Out Quarters. Datadog grows 74% at $2B in ARR. Ping Identify Acquired for $2.8 Billion. Don’t Call it a Downturn.

SaaStr

And inflation is awful. And startups that had planned on a big up round this year are in many cases, really struggling. Gartner, spending on SaaS: 2020: $120B 2021: $152B 2022: $177B 2023: $208B. . — Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 3, 2022. So are we in a downturn in SaaS?