Remove AWS Remove Business Model Remove Investment Remove Revenue
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set.

AI 183
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Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement

Model providers (OpenAI, Anthropic, etc as companies start building out AI). Hyperscalers (AWS, Azure, GCP as companies look for cloud GPUs who aren’t building out their own data centers) Infra (Data layer, orchestration, monitoring, ops, etc) Durable Applications We’ve clearly well underway of the first 3 layers monetizing.

Cloud 183
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ISVs vs SaaS: What’s the Difference?

Stax

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. While they operate under different business models, ISVs and SaaS share similarities in software development, cross-platform accessibility, and industry reach.

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Clouded Judgement 3.31.23

Clouded Judgement

How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. Revenue multiples are a shorthand valuation framework. Overall Stats: Overall Median: 6.1x

Cloud 130
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Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

OpenView Labs

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software.

Scale 98
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That’s a nice little $1-2M SaaS company you have here. Call me to discuss if it will scale!

The Angel VC

In it he argues that an eCommerce business with $10 to $20 million in revenues is not that hard to build and also not very valuable. So if you start an online shop, offer products at a loss, get listed on some of the biggest comparison shopping sites and do some affiliate marketing, you can easily get to tens of millions in revenue.

Scale 192
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What the Public Markets Trends Say About the Fundraising and M&A Environment Startups

Tom Tunguz

The chart above shows the relationship between beating earnings and Enterprise Value to Trailing-Twelve Month Revenue Multiple (EV/TTM Rev). After the correction of about 40% enterprise companies and of 25% in consumer names , the median enterprise revenue multiple has popped back up 7.4x and consumer has increased similarly to 7.0x.

Startup 100