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).

Matching Price to Value: 3 Lessons in Monetization from Menlo Ventures (Video + Transcript)

SaaStr

Naomi Pilosof Ionita | Investing Partner @ Menlo Ventures. We’re going to talk about matching price to value, and I’m going to share some lessons from my time as both an operator and an investor. I’m a nerd on the subject, I love it and I brought it now from my time as an advisor and an operator to the investing side. This is an interesting study that was done by the folks from Price Intelligently. The next camp, we price it artificially low.

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Subscription price and customer acquisition costs

Practical Advice on SaaS marketing

Here's an inquiry from the SaaS Marketing mailbox: Dear SaaS Marketing guy, Do software-as-a- service (SaaS) solutions with a high subscription price per customer have a better chance of success than solutions with a low subscription price? Sincerely, Earnest, but Confused SaaS Solution Developer Dear EbCSSD, Here's the good news: Whether your solution carries a high subscription price or a low subscription price, either one can succeed.

Micro Startup Acquisition: The Definitive Guide to Buying and Selling Small Startups

Neil Patel

Plus, the price tag on those more established businesses often run into the billions. That’s an expensive mistake if you make the wrong investment. Micro startup acquisitions. Micro Startup Acquisitions: What Are They, and Why Should I Care?

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.

SaaS Pricing Models & Strategies Demystified

Baremetrics

Pricing can be one of the most overwhelming and puzzling parts of business. SaaS businesses, in particular, have a unique challenge with pricing for a few reasons: There’s an almost infinite number of different ways to price a SaaS product. The cost to produce and maintain a SaaS product is generally unrelated to the value a customer receives, so pricing based on how much margin (profit) doesn’t make sense for the most part. What is pricing? Change the price.

SaaStr Podcast #211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk and Kustomer

SaaStr

In Today’s Episode: * David Skok , General Partner @ Matrix Partners: Why does David believe that all good products have at least one variable pricing axis? Chetan Puttagunta , General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model? Mark Suster , General Partner @ Upfront Ventures: What were Mark’s two biggest lessons on pricing from seeing the hyper-growth of Salesforce first hand? I learned a ton about pricing.

What is a pricing matrix? 4 Pricing matrix examples for high growth

ProfitWell

Ah, pricing—the core of your business. Your pricing page is where the magic happens. Your pricing page is where you convert leads into revenue. So, your pricing structure needs to be laid out in a digestible format for customers—you do this with a pricing matrix. Throughout this article, I’ll unpack what a pricing matrix is, how to set one up, and some stellar pricing matrix examples. What is a pricing matrix? Pricing as a growth lever.

Usage-Based Pricing: What SaaS Companies Need to Know

Baremetrics

Enter usage-based pricing. In this guide, we’ll take a deep dive into usage-based pricing, how it works and who it’s for. What is usage-based pricing? What are the advantages of usage-based pricing? What are the downsides of usage-based pricing?

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. Before that, I was at a company called Grasswire, and in both of those companies we had to acquire customers for about 1/10th the price of our competitors. The post How to Make User Acquisition Practically Free with Lambda School (Video + Transcript) appeared first on SaaStr. Lambda School trains people online to be software engineers.

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.

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? Optimized pricing page – You might say that not all SaaS companies have their pricing plans available on their website. You should be careful in spending money, provident in controlling your budget, and understand in which marketing channels you invest.

What is pricing power? How the power of pricing determines success

ProfitWell

Deciding when to adjust your pricing is never easy. Think back to the last time Netflix raised its monthly price—social media was chock-full of negative comments about it. That’s why understanding how much pricing power you have is so important. This knowledge helps you predict how any price adjustments will impact your customers as well as your business. Instead of worrying about whether or not you’ll lose customers, you’re able to raise your prices with confidence.

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? Optimized pricing page – You might say that not all SaaS companies have their pricing plans available on their website. You should be careful in spending money, provident in controlling your budget, and understand in which marketing channels you invest.

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. Also, don’t miss out on the lowest prices EVER on SaaStr Annual 2020 tickets. Ryan Smith: The backstory here is we turned down an acquisition offer for $500 million in 2012. It’s worth every ounce of investment. You got cash, they’ll invest in you.

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.

How pricing strategy helps shape your entire business model

Inside Intercom

No matter the specifics of how your company adapts and grows, it’s crucial to be aware of how your pricing strategy relates to other aspects of your business. It’s all too easy to make the mistake of adopting a pricing model that is ill-suited to other aspects of your company, such as the go-to-market strategy or sales strategy. Do you have a pricing page on your site or do you make it up on the fly? The key here is to keep the cost of customer acquisition down.

Pricing Optimization: Why and How You Need to Optimize Your Prices

ProfitWell

For years, I’ve seen companies start their pricing journey by simply pulling a number out of their hat and calling it a day. Some get close, guided by their competitors’ prices (which were likely pulled from their own hats). We’ve talked before about pricing strategy being like a dartboard. Guessing at your pricing is a little like throwing darts blindfolded. That’s where pricing optimization comes in. You can’t afford to overlook optimizing your pricing.

Value Delivery Patterns Shape Your Pricing Choices

OpenView Labs

The when becomes a critical input into designing your pricing model. Working with a large B2B SaaS company that has a long implementation and configuration cycle, we uncovered contradictions between their pricing and how the customer was getting value. This company manages time to capture implementation costs (how many months will it take until revenue collected exceeds investment in implementation), with a target to capture these within four months.

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?

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.

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.

The Price is Right (or not)

The Angel VC

One of the most important questions which every SaaS company has to solve is to find the right pricing – the right pricing model as well as the right price levels. It’s obvious that getting pricing right is extremely important: If you’re too cheap you will leave money on the table and reduce your ability to invest in customer acquisition. It is of course impossible to find the optimal price point in a way academic textbooks would define it.

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 Customer-Driven, Pay-As-You-Go Pricing Changes Everything

OpenView Labs

Some SaaS companies still have the pricing strategy that their founder picked after a thirty minute whiteboarding session five years ago; those startups subist but rarely thrive. After fifteen years of running Logikcull, a Series B legal tech startup (and OpenView portfolio company), I’ve learned a lot about the art and science of pricing, particularly when I transitioned Logikcull from a managed service to software-as-a-service. Just Try Stuff: Pricing Testing Tips.

Should You Raise Prices When Your Costs Go Up?

OpenView Labs

The knee jerk reaction to an increase in costs is often a price increase. Some years ago, I was sitting in the office of the VP of Pricing at a major manufacturing company. He was called out of our meeting by the CEO to explain to the board how he was going to protect margins by increasing prices. He suggested lowering the cost of equipment and increasing the prices of software services. Product investment is one of the best ways to manage these long term.

18 investors fueling Latin America’s SaaS superstars

SaaStock

Grab an early bird ticket for SaaStock LatAm before February 15th to get the best possible price. 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.

The 5th DO for SaaS startups – Get your pricing right

The Angel VC

Following some advice on choosing the right market ( here and here ), building a team with product/tech DNA and the importance of an awesome product and an awesome marketing website I would now like to turn to the topic of getting your pricing right: 5th DO for SaaS startups Get your pricing right If you're following this blog for a little while, a part of this post won't be new for you because I wrote about the topic before and will repost a large part of it here.

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.

How to Structure Your SaaS Pricing and Packages for Growth

Chargify

However, they often overlook the most powerful way to increase their revenue, which is pricing optimization. According to Price Intelligently’s “The Anatomy of SaaS Pricing Strategy” report, pricing is an untapped growth lever. In their study of 512 SaaS companies, Price Intelligently discovered that monetization had the largest impact on the bottom line. Use anchoring in your pricing tiers . Avoid pricing too low (or too high!).

Outcomes-Based Pricing: Understanding Where Customers See Value

ProfitWell

Outcomes-based pricing. Outcomes-based pricing is a framework for understanding where customers are seeing the value in your product, then adjusting the pricing to align with that value. It's a fundamental shift in how to think about pricing. By structuring our pricing based on the actual value of our product as well as the customer's perceptions of that value, we're better able to create a pricing strategy that justifies how your company monetizes.

SaaStr Podcast #358 with Tipalti Founder & CEO Chen Amit

SaaStr

How does Chen think about optimizing pricing models today? How can SaaS companies have variable pricing mechanisms without disincentivizing usage? Chen Amit: So, the way I look at it, I’m willing to invest in a business that has this ROI.

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.

An Inside Look at How SurveyMonkey Overhauled Pricing After 10 Years

OpenView Labs

But what you may not know is how dramatically the product has changed over the last twenty years, or that the company recently implemented a truly comprehensive pricing and packaging update. Pri Carr leads SurveyMonkey’s business strategy, operations and corporate development teams, and Jordan Nolff heads up the company’s monetization and pricing strategy. Changing pricing is always a touchy subject, rife with the potential for internal upheaval as well as customer backlash.

The Impact to Startups of the LinkedIn Acquisition

Tomasz Tunguz

The acquisition frenzy continues in SaaS. billion, which prices the business at 8.1x In the 2016 acquisition market, the median acquisition multiple is 7.8x The LinkedIn acquisition in particular is a strategic move by Microsoft. This acquisition will have three implications for startups. Second, the acquisition has the potential to upend the CRM market. Company Price Revenue $M Annual Growth Rate Gross Margin NI Margin FCF Margin TTM/Rev NTM/Rev.

What is revenue optimization? Using pricing to optimize revenue

ProfitWell

Revenue optimization is a combination of pricing, demand, and marketing strategies used to maximize revenue growth. It involves taking a tactical, analytical approach to your pricing—requiring analysis of your price points, sales channels, and various other areas of your business—in order to maximize it. Pricing is just the start. Pricing decisions. It thinks of trying to optimize its revenue by dropping the price on its new smartphone accessory line.

SaaS Freemium Model: What Works, What Doesn’t?

Incredo

You analyze your needs and the pricing plans and pay for the most comfortable one. For example, Zapier’s basic plan allows to create 5 zaps, and two-step automation (one trigger, one option) while priced plan includes multi-step zaps, premium apps, conditional logic. As you can see on MailChimp’s Pricing page, support is not included in the Free plan, while in case of other plans, you get 24/7 support and even phone support if you use their Premium plan. . SaaS Pricin

SaaS 191

Annual vs Monthly Subscription for SaaS Businesses: Weighing the Pros and Cons

Incredo

To shed light on your doubts and questions, we have compared and analyzed the pros and cons of these two subscription pricing models , knowing how essential it is for your SaaS success. History of the subscription pricing model: From newspapers to the rise of SaaS subscription. What is the subscription pricing model? You can find Free plan, Pay-as-you-go plan and Subscription plan on their Pricing page. Subscription Pricing Model: Charge monthly or annually?

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. We had a great easy-to-use pricing model. If you get that wrong, boy, I tell you, you pay the price for those.