How to prepare your startup for acquisition

Chart Mogul

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. Every stage of the startup acquisition process – and I mean every stage – is a negotiation. Customer Acquisition Cost (CAC).

Three Secrets to a Successful Acquisition

SaaStr

An acquisition can make or break your startup. Take IBM’s recent purchase of RedHat to accelerate hybrid cloud adoption, or Salesforce’s acquisition of Mulesoft to coordinate, unlock, and integrate customer data better than any competitor. As a former M&A attorney and serial SaaS founder myself, I’ve experienced acquisitions from every point of view. Always always always check to make sure you have clean rights to an acquisition target’s technology.

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Driving SaaS Customer Acquisition w/Success Metrics

Chaotic Flow

Most SaaS businesses begin their journey down the SaaS metrics path by tracking recurring revenue in relation to customer acquisition costs. SaaS profit = current customers x ( avg recurring revenue – avg recurring cost ) – new customers x avg acquisition cost. Is it possible to apply SaaS customer success metrics to customer acquisition? SaaS customer acquisition is merely SaaS prospect success. This third post examines their use in SaaS customer acquisition.

Tracking Customer Acquisition in SaaS

Pierre Lechelle

When was the last time you invested money into Customer Acquisition? Tracking Customer Acquisition can solve all […]. Cet article Tracking Customer Acquisition in SaaS est apparu en premier sur Pierre Lechelle. Are you a CMO? Today? When was the last time you felt confident spending one dollar because you’d get back 10 dollars? And I’m not speaking about extrapolating LTV. I’m speaking about real LTV on a specific customer.

New Study: 2018 State of Embedded Analytics Report

Embedded analytics also helps companies master efficient customer acquisition and retention. In terms of customer acquisition and retention, embedded analytics unquestionably boosts business. The survey results confirm that embedding analytics is well worth the investment.

How to Make User Acquisition Practically Free with Lambda School (Video + Transcript)

SaaStr

There’s a little bit of work to do still, but you know, tonight the title of my talk is how to make user acquisition practically free. So I have thought for a really long time, and I wrote a book about this, but the more I think about how to drop the cost of user acquisition, the more clear it becomes to me that it’s not about the typical model that people have in their mind when they’re thinking about this, and the typical problem set that people are trying to solve.

Disrupting the Desk Phone: How and Why We Made a $50M Acquisition with Dialpad (Video + Transcript)

SaaStr

Thanks so much everyone for joining us for our fireside chat today, disrupting the desk phone: how and why we made a $50 million acquisition. We are an enterprise-focused VC fund in New York, and we invest in enterprise startups throughout the country and it’s both a privilege and a blast to be here with one of our WorkBench portfolio companies, DialPad with Craig Walker, founder and CEO, and Dan O’Connell, chief strategy officer and former CEO of Talk IQ.

8 Smart Tactics For Your SaaS Customer Acquisition Strategy

Incredo

Just look at customer acquisition vs retention statistics. What if I am starting out a business and don’t even have leads, not to mention SaaS customer acquisition strategy? And don’t forget that buyer persona-focused and well-designed packages can deeply affect your prospects and encourage them to make a buying decision faster. How to avoid mistakes while implementing your SaaS customer acquisition strategy? Are all mistakes equal?

Customer Acquisition Spending: Lessons from Workday

Practical Advice on SaaS marketing

Specifically, it illustrates the need for software-as-a-service (SaaS) companies to spend money - lots of it - on customer acquisition. times more on customer acquisition than annual revenues, and in 2007 it spent nearly 18 times more than annual revenues. Though the cost of customer acquisition relative to annual revenues has declined steadily, on-going customer acquisition expenses will continue to keep Workday in the red for some time.

The Things Nobody Tells You About An $8B Acquisition with Ryan Smith from Qualtrics (Video + Transcript)

SaaStr

Join Qualtrics Co-Founder and CEO alongside SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Ryan Smith: The backstory here is we turned down an acquisition offer for $500 million in 2012. You have a face transition, you have a mini brand, and then you have a brand, and then once you have a brand investing in it, it actually is more important than we realize. It’s worth every ounce of investment.

8 Smart Tactics For Your SaaS Customer Acquisition Strategy

Incredo

Just look at customer acquisition vs retention statistics. What if I am starting out a business and don’t even have leads, not to mention SaaS customer acquisition strategy? And don’t forget that buyer persona-focused and well-designed packages can deeply affect your prospects and encourage them to make a buying decision faster. How to avoid mistakes while implementing your SaaS customer acquisition strategy? Are all mistakes equal?

SaaS acquisitions can be tricky

Practical Advice on SaaS marketing

Having lived through several acquisitions during my career in technology companies, I have some idea of what the folks at SuccessFactors (acquired by SAP last year) and Taleo (acquired by Oracle a few weeks ago) are going through. One reason behind the acquisitions of software-as-a-service (SaaS) companies is the high cost of sales and marketing. Even well-established SaaS companies typically pay 40 percent or more of their annual revenue on customer acquisition.

Three Observations About the Adobe/Marketo Acquisition

Tomasz Tunguz

Presumably, the company traded investments in growth for profitability to service the new debt. trailing twelve months, the third highest multiple for large software acquisitions. In fact, relative to acquisitions of software companies growing at similar rates, at $4.75B, Third, the multiple expansion in the SaaS market continues, and it’s incredible. About two years ago, Marketo was publicly traded and valued at roughly $1.1B. Vista Equity paid $1.8B

What is customer acquisition cost and why does it matter?

Inside Intercom

How to think about costs in your customer acquisition strategy. If all you care about is optimizing for customer acquisition, you might think all five ads were created equal and allocate your budget accordingly. Pure customer acquisition metrics are popular, but dangerously inexact tools for calibrating and scaling your company growth. What is Customer Acquisition Cost (CAC)? How Customer Acquisition Cost (CAC) works day-to-day.

5 customer acquisition strategies for winning new customers

Inside Intercom

All future growth hinges on one thing – customer acquisition. While this may sound simple, it can be incredibly challenging to find new opportunities for growth and customer acquisition in an increasingly crowded marketplace. To help you understand and improve your customer acquisition, we asked SaaS leaders within and outside of Intercom to reveal their top customer acquisition tactics. Mobilize your influencers to drive customer acquisition.

How Will DiscoverOrg’s Acquisition of ZoomInfo Affect Sellers?

Sales Hacker

A few months ago we wrote about Zoominfo’s acquisition of Datanyze in an effort to strengthen its sales intelligence engine. This acquisition also further validates a key theme we mentioned a few months back with the previous acquisition: we’re continuing to head into a heavy period of sales stack consolidation and more mergers and acquisitions are going to happen amongst players. If you’re an investor, do you still invest in tools like these?

Customer Acquisition Cost: The Secret Weapon of Successful Startups

Chart Mogul

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). What is the Customer Acquisition Cost? CAC stands for customer acquisition cost.

Build a sustainable customer acquisition strategy

Inside Intercom

Or on the other hand, invest too little money in a channel that has the potential to bring in many more customers than it does right now. The best way to improve your customer acquisition is to have a set strategy – one where you know how you’re going to generate demand, what you’re spending on these efforts and how you’re going to convert visitors into paying customers. What is customer acquisition? Customer acquisition starts with your product.

Four Investments to Grow Search Traffic in 2019

OpenView Labs

A common topic we talk about is customer acquisition and how competitive it’s becoming; how most channels are saturated and how it’s challenging to find leverage in those channels to scale beyond your competitors. We interviewed some of the smartest minds in search to discuss what investments companies should make in the upcoming year if they want to grow their search traffic. An investment in a full stack search team can accelerate your growth.

Using Product Led Growth as an Indicator for Investment w/OpenView Venture Partner, Ashley Smith (Video + Transcript)

SaaStr

I’m talking about product-led growth as an investment strategy, but really my background is 10 years of operating experience in the product-led growth world. Now I’m investing in that. I say investment strategy, but really it’s like how do you build a company that’s focused on product-led growth? I enjoyed that weird dynamic of trying to impress them and get them to invest in my company. billion acquisition more so than GitHub.

SaaStr Podcast 215: Ryan Smith, Qualtrics Co-Founder & CEO On The Things Nobody Tells You About an $8 Billion Acquisition

SaaStr

Qualtrics Co-Founder and CEO Ryan Smith sits down with SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Here’s what Jason and Ryan talk about: Why did Qualtrics turn down a $500M acquisition offer in 2012? Brand experience, measuring people’s brands, employee experience, it’s been $10 billion in acquisitions in that space and we’re kicking butt.

Customer Retention vs New Customer Acquisition: How Do You Optimize Both?

Totango

There’s no need to indulge a divisive customer retention vs. new customer acquisition dynamic. Customer Retention vs New Customer Acquisition: The Common Goal. Optimize Customer Acquisition and Retention. Optimizing both customer acquisition and retention begins with identifying how each can aid the other. Working Together to Convert Interest into Investment. Customer Retention vs. New Customer Acquisition: Making the Most of Both.

Ideas we'd like to invest in

The Angel VC

Inspired by Paul Graham’s “Startup Ideas We’d Like to Fund” post of a few years ago I’d like to start a series of posts about ideas that I find exciting and that we at Point Nine would be very interested in investing in. That means low customer acquisition costs which, combined with a good revenue model, are a killer.

How Much Should A SaaS Startup Invest in Sales & Marketing?

Tomasz Tunguz

How much should a SaaS startup invest in sales and marketing at different stages of the business? Sales and marketing investment depends on many different factors including establishing product market fit, the business’s sales model (inside, field, freemium), and not least, cash balance and fundraising capacity. The chart above shows the sales and marketing investment of publicly traded software companies at different revenue levels.

Subscription price and customer acquisition costs

Practical Advice on SaaS marketing

For most SaaS companies, the customer acquisition costs will be the single largest on-going expense for their business. It's useful only in relation to costs, especially customer acquisition costs. Different prices means different acquisition costs Different prices do tend to require different approaches and customer acquisition costs vary accordingly.

To Boost Your Customer Lifetime Value, Make This 1 Critical Investment

OpenView Labs

Without a serious investment in your company’s customer success , your customers will inevitably grow frustrated with the customer experience. Typically, companies use it to determine their customer acquisition strategy —the higher your CLV is, for example, the more you can feel comfortable spending on marketing, sales, branding and incentives. A higher CLV enables you to invest more in customer success, which increases your CLV. Customer success drives customer acquisition.

18 investors fueling Latin America’s SaaS superstars

SaaStock

Its partners boast diverse venture experience and have previously invested in more than 70 companies. SaaS Investments: Pipefy, HeyDoctor. Canary invests in Brazilian startups, aiming to transform the country’s startup ecosystem by filling an early stage funding gap that it has identified. SaaS Investments: Gupy, idwall, meetime, Qulture rocks, Social Miner, and Teravoz. A.B.Seed Ventures is a VC fully focused on B2B SaaS investments.

How Big is a Typical Software Company Acquisition?

Tomasz Tunguz

Major capital investments fell 55% in Q3. Last, M&A activity seems quite brisk with more than 30 $1B+ billion acquisitions in the last nine months alone. How do all these factors commingle to influence today’s acquisition environment? 2016 is on pace to match the past three years of software acquisition trends which vary from $64B-$70B. However, in 2016 the total number of acquisitions will likely fall by 40% from an average of 150 per year to 92.

Six Lessons on How to Build a Platform that Fuels an Ecosystem with Plaid (Video + Transcript)

SaaStr

Quovo had focused on investment accounts and allowing you to programmatically interact with your investment accounts through third-party applications. Zach : And so as we were having this conversation, we did, of course, raise a little bit more money in that round in order to enable the acquisition. People ask if we had an acquisition strategy, we definitely don’t. The hook for this year, the acquisition strategy of fintech, is going to be around high yield.

How to Find Your User Acquisition Channels

Ramp Ventures

You’ll fail without investing in Facebook Ads,” one article claims. Attempting to drive growth on multiple user acquisition channels divides your resources and dilutes your focus. To do that, begin by mapping your existing user acquisition channels (if any) so that you can proceed with an approach that’s right for your audience, your resources and your business’s current stage. Why You Need to Map Your User Acquisition Channels. Finding Your User Acquisition Channels.

WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear

Of course a nice chunk is primary capital, i.e. for the company balance sheet, to invest in growth initiatives, security and quality, and advancing our existing strategic priorities through acceleration and de-risking. And now, with Silver Lake’s investment and support, we can accelerate our growth investing even more into our strategic roadmap, and placing some new bets on ideas we’ve had but haven’t been able to find the space to explore.

The Impact to Startups of the LinkedIn Acquisition

Tomasz Tunguz

The acquisition frenzy continues in SaaS. In the 2016 acquisition market, the median acquisition multiple is 7.8x The LinkedIn acquisition in particular is a strategic move by Microsoft. With the acquisition of LinkedIn’s data set, Microsoft will have an opportunity to both continue to grow the existing business by selling it through its channels, differentiate its CRM product, Dynamics, and offer a sales productivity tool in Sales Navigator.

The Seed Investment Market in 2015

Tomasz Tunguz

The seed stage investment market feels like it’s changing quickly. These firms raised between $5 and $75M to invest in seed stage companies. In addition, VCs have been participating in the seed stage market as well, making 2013 a banner year for seed investment. Year Number Total Invested, $M Average Round Size, $k. 2014 saw 18% fewer investments, but an equal amount of investment at $1.3B.

The Acquisition Environment for Startups in 2015

Tomasz Tunguz

Public companies use cash for many different things including share buybacks, investments in their own businesses, insurance, working capital and so on. Growth is king in today’s public markets. Most of the SaaS IPOs we’ve analyzed have traded growth for profitability and they have been rewarded handsomely for it. For the large tech companies, this trend is no different. The public market prizes growth.

SaaS Valuation FAQ Series – Part 3: Customer Acquisition Cost (CAC) Recovery Time

Cardin Partners

For the purpose of this example, we will ignore segmentation effects, while remarking that they are often the source of tremendous insight regarding exactly where CAC dollars should and should not be invested.) Let’s continue the example: MidChurn invests $5k to acquire a customer that produces $7k / year in re-investable contribution margin. Q: How does my CAC recovery time affect the rate at which I can grow, without taking on any outside capital?

How much should you spend on marketing?

Practical Advice on SaaS marketing

The SaaS metrics gurus express this as customer acquisition cost (CAC) relative to customer lifetime value (LTV). Think of customer acquisition like a machine A former colleague explained the concept to me like this. SaaS companies are trying to build a customer acquisition machine.

The Most Successful SMB SaaS Acquisition Channel Ever Built

Tomasz Tunguz

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. As many of these channel partners move to newer distribution models, the brokerage channel model in particular, they represent an efficient and leveraged customer acquisition channel. It’s the most successful SMB SaaS acquisition channel ever built.

SMB 40

The Sendgrid Journey: Scaling From Growth Stage to $2B Acquisition in 4 Years (Video + Transcript)

SaaStr

In this session, Anna and Sameer will highlight SendGrid’s journey from growth stage through acquisition and why focusing on people and culture is mission critical to success as a company goes through the scaling process. I’m Sameer Dholakia, CEO of now Twilio SendGrid as of Friday after our completed acquisition. You got a lot of overhead, and there’s all these regulations, and you got to do these earnings calls, and invest in investor marketing.

How Customer Success Meaningfully Reduces Cost of Customer Acquisition

Tomasz Tunguz

These are two fantastic benefits with meaningful return-on-investment. But great customer success organizations can meaningfully impact another critical part of the customer lifecycle, customer acquisition, by catalyzing evangelists to refer new customers. Thanks to Bill Macaitis , current CMO at Slack and former CMO of Zendesk, who inspired and co-authored this post.

What the Nest Acquisition Means for the Internet of Things

Tomasz Tunguz

First, venture capitalists invested nearly $1B of capital in the IoT in 2013, more than 3% of all VC investments by dollars. And third, Nest’s sale to Google last week set the high water mark for IoT acquisitions, measured at more than $3B , firmly establishing the category as a strategic imperative for the world’s largest technology companies.