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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

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We’re Back. Q1 Was a Record for Tech Acquisitions in Dollars. But Deal Count? It’s Doubled But Isn’t Close to 2021.

SaaStr

So Bloomberg and CB Insights have the latest data out on start-ups getting acquired, and 2025 is off to a record start : Wiz’s record $32 Billion acquisition by Google pushes the dollar value to a record, but you may have also missed there were 11 VC-backed $1B+ exits already in 2025, worth $54.5 billion altogether, per Bloomberg.

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Do PE Acquisitions of Public Startups Imply We've Hit a Pricing Bottom?

Tom Tunguz

But no relationship exists between the Nasdaq’s price level & multiples. Zendesk & Anaplan announced their acquisitions within days of each other & their multiples bound the outer edges of the range: 5.1x & 13.4x. The more free cash the company produces, the lower the acquisition multiple. Growth Rate.

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Dear SaaStr: What Are The Best Strategies for Raising Capital if Your Goal is To Get Acquired?

SaaStr

Well, first, let’s be clear — it’s tough if your core goal is to get acquired for a big price in most cases. There really aren’t that many good acquisitions done a year. Billion dollar acquisitions are still rare, and only a handful of companies have the market cap to pull them off. And start early.

Strategy 260
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The Vertical SaaS Gold Rush: Why Non-Tech B2B Is Growing 250%+ Faster

SaaStr

Lower Competition = Higher Prices In horizontal markets, you’re competing with 47 project management tools. Toast can charge restaurant-specific pricing. Vertical SaaS Acquisition Spree Horizontal platforms will pay massive premiums to acquire vertical specialists. In vertical markets, you might be the only serious option.

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Expect A Lot More $2B+ Acquisitions in SaaS and Cloud

SaaStr

Q: Which merger and acquisition trends, if any, do you expect to unfold in the next 12 months? Multiples and share prices are at all time highs. With Twilio then seemingly priced to perfection, and with investors expecting huge growth rates … they bought the biggest thing in email API they could afford, not the smallest.

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The State of SaaS Go-to-Market with Theory Ventures General Partner Tomasz Tunguz

SaaStr

3: Payback Periods + Quotas Have Jointly Increased The number of months required to recoup the cost of customer acquisition has increased by 12% on average, which is linear with the increase in sales cycles. You get a base number of minutes for a particular price. That’s where things are the most challenging.