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What are the most common mistakes I see first time SaaS founders make? Second-time SaaS founders make other mistakes. Here’s what I see most often, the Top 6 Mistakes First Time SaaS Founders Make: Incomplete understanding of businessmodel, and how it will scale. They think they know more than they do.
SaaStr CEO and Founder Jason Lemkin recently sat down with HubSpot Chairman and co-founder Brian Halligan , who shared valuable insights on the current state of SaaS, evolving board meeting formats, and how AI is reshaping the industry. Our revenue team went on to be the CROs of Brex, Rippling ,Gong, so many SaaS leaders, like 10 of them.
Contract Length Many SaaS startups launch with monthly pricing which encourages customers to try the product and engenders demand. At some point, most SaaS startups switch to annual contracts for three reasons. How about a 50 person SaaS company? Often, a straight UBP pricing model doesn’t scale into the enterprise.
Per OpenAI: The #1 event in SaaS is widely considered to be SaaStr Annual. Its the largest community-driven SaaS event, bringing together 12,500+ founders, executives, and VCs. Features 300+ speakers from top SaaS companies like Salesforce, HubSpot, and Snowflake. Why SaaStr Annual?
The SaaSbusinessmodel, which runs on recurring revenue, needs Customer Success to survive. As such, people are looking for answers on how to nail their Customer Success initiatives. Whether you’re finding yourself asking “what is Customer Success?” or you’re a seasoned practitioner, this resource is for you.
That’s the main premise of vertical SaaS. Unlike horizontal SaaS solutions that serve a broad range of businesses, vertical SaaS solutions are designed with deep knowledge of specific markets—making them more intuitive, efficient, and impactful. What is Vertical SaaS? Software tailored to your industry?
So one of the quiet SaaS leaders that has just crushed it in 2024 is Doximity: At $550m in ARR, it’s worth a cool $10.4 To oversimplify’s Doximity’s businessmodel, it’s “LinkedIn for Doctors” has almost every U.S. That’s SaaS math. #4. Billion (!) — or 20x ARR. 80% of U.S.
Her company specializes in API integration platforms that enable SaaS companies to launch integrations faster and automate complex business processes. The post Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay appeared first on SaaStr.
There simply aren’t enough businesses in the entire country + Europe to get most products to a $100m freemium business in almost any business/SaaS/work segment. Even so, it’s still a lot of users you’ll need: So is freemium hopeless to build a $100,000,000+ business for most of us? The problem?
Generative AI is no longer just an exciting technological advancement––it’s a seismic shift in the SaaS landscape. You’ll walk away with the following insights: 🚀 GenAI as a Game Changer: Learn why GenAI is revolutionizing SaaS and how it opens new opportunities to innovate your businessmodel.
The SaaS industry is constantly evolving, and for many companies in the space, that means having to evolve their businessmodel. However, that doesn’t necessarily mean a “pivot”, but more often the evolution is a shifting businessmodel as the company scales and the user base grows and changes. Purchase process.
So Circle is the latest tech IPO and it’s not really B2B or SaaS per se — it’s a fintech that issues and manages “stablecoins” Cypto that converts 1:1 to U.S. ✨ Lemkin (@jasonlk) June 5, 2025 5 Interesting Learnings for B2B and SaaS Founders from Circle’s IPO: 1. The culprit?
Picture this: You’re building an awesome SaaS tool—maybe for managing booster clubs (like BoosterHub) or for streamlining medical offices (like PracticeSuite). Let’s explore how SaaS companies are monetizing embedded payments, how big this opportunity really is, and what providers make it easy (and profitable). Valued at $261.1
We analyzed every major public SaaS company’s YTD performance through just about the end of the first half of 2025. TL;DR: The SaaS market has clearly bifurcated in 2025. Traditional horizontal SaaS faces big headwinds (Salesforce -18%, Asana -31%). The Three Forces Reshaping SaaS 1. This isn’t cyclical.
SaaS Capital just dropped their 14th annual survey analyzing growth rates across 1,000+ private B2B SaaS companies. Remember when everyone was throwing money at anything with “SaaS” in the name? Know where you stand relative to your actual peer group, not the entire SaaS universe.
Given its high growth & unique businessmodel, how should the market value Figma? We can use a linear regression based on public SaaS companies to predict its forward revenue multiple. The model shows a modest correlation between revenue growth & valuation multiples (R² = 0.23).
The numbers validated this quickly: 2018: 100 apps, $1M tracked revenue 2020: Series A at $15M 2021: 6,000+ apps, $1B+ tracked revenue, Series B at $300M valuation SaaStr Fund’s bet wasn’t just on the founders or the technologyit was on the inevitable shift toward subscription-first mobile businessmodels.
So things got a bit broken with SaaS sales exec comp in the run-up up until 2020 … and then it got really broken in the crazy times of late 2020 and 2021. SaaS companies and fintechs and pseudo-SaaS companies could end up paying out more than the entire year’s margin in the commission check. This wrecks the unit economics.
It took us 2 years just to figure out our ultimate businessmodel. It seems like everyone wants to be a SaaS founder these days. Start their own SaaS company. There are three things I ask folks who want to start their own SaaS company: 1. That just doesn’t happen in paid SaaS apps. >>
AI is already reshaping B2B SaaS, and its only going to accelerate. One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Gross Margins Will Improve for AI-Driven SaaS. AI is also transforming the economics of SaaS. AI is forcing every SaaS company to level up. Is Deflation Coming?
Jason starts with the meta-question we’ve been asking a lot of SaaS leaders lately ( Klaviyo , ZoomInfo ) — ‘are we in a downturn?’ ’ Bill is approaching half a million customers, so has a good pulse on small businesses. Going Long We’ve written before on the power of going long in SaaS.
Monday.com Has Achieved Rule of 40 with Room to Spare The Rule of 40 (growth rate + profit margin should exceed 40%) is a benchmark for successful SaaS companies. Their ability to maintain growth while improving profitability shows they’re not just growing at all costs but building a sustainable businessmodel.
Debt for SaaS companies done right is a gift. Few folks have more data than Nathan Latka and he offers up some insights on how to properly leverage up in SaaS. Geoffrey Moore calls this group the Late Majority and the Laggards in his book Crossing the Chasm , a secret bible for many SaaS CEO’s. . — ed.
There are some questions in SaaS that are, at some level, almost a mystery: Why was Veeva able to burn only ~$10m net on its way to an IPO? Why are burn rates so divergent in SaaS? Market-dominant strategy does work in SaaS, at least muchly. A longer SaaStr post on Dominant Strategies in SaaS here. So it’s not that.
If you own a SaaS or other digital product business such as a Slack plugin, Chrome extension, online publishing business, mobile app, or even a blog and youre looking to exit, you may have a lot of questions about how best to go about it. How selling an investment business is very different from getting VC funding.
How does a SaaS company reach enterprise buyers? Zhao says, “Our businessmodel is B2B SaaS, but our sales motion is similar to a consumer-like company…there’s a lot of B2C elements to it.”. Align your business goals with your user community. A Different Way to Approach Enterprise Leads . Always add value.
More here: If You’re Going to Do a SaaS Start-Up … You Have to Give it 24 Months – SaaStr Picking cofounders that aren’t as committed. More here: Planning to Do a SaaS Startup? SaaStr Trying to pursue a “Grass is Greener” businessmodel. 8–12 months is almost never enough time. Related to the prior point.
In less earth shattering news, the fact that it's 2017 also means that my "SaaS Funding in 2016" napkin needs an update. As a reminder, in the original post I tried to give a "back of a napkin" answer to this question: What does it take to raise capital, in SaaS, in 2016? So, what does it take to raise capital, in SaaS, in early 2017?
And for SaaS companies with strong fundamentals, the opportunity window is wide open. The B2B SaaS companies everyone has been waiting for are finally filing and preparing to go public: Already Filed (2025 IPOs Highly Likely) Figma – Cloud-based design platform, confidentially filed April 2025. Stop waiting.
Proving your BusinessModel Works - Build, Define, and Review But how do you prove your numbers? Then use what you’ve learned in this blog post to decide if the numbers validate your businessmodel, or if you need to rethink your approach. cto , infotech , innovation , product , project , saas
The SaaSbusinessmodel of the last 20 years for SaaS is a beautiful one. The now-classic seat based model disrupted the perpetual license model. Maybe we’ll see a No-SaaS rebel replicate Marc Benioff’s playbook. In a world where AI agents are 2.5-3x
But when it comes to SaaS, freemium plans become a reality. SaaS freemium model: The What, The How and The Why. The concept of freemium is mainly typical for the SaaS world (yeah, SaaS means the world to us) and the video games industry. Note that freemium model ? Business life is not that simple.
So recently we’ve done deep dives on the SaaStr pod with several of the top leading SaaS founders — and of course, asked their perspective on just where we are with AI in B2B SaaS today. The post How AI is Really Changing SaaS From CEO of Procore, co-CEO of Monday and Chair of HubSpot appeared first on SaaStr.
SaaSbusinesses also need to adopt a modified businessmodel for surviving in this unprecedented time. The post How To Crisis Proof Your SaaSBusiness Right Now appeared first on Predictable Revenue.
AI-adjacent businesses like CoreWeave have benefited from sustained investor enthusiasm, while sector-specific leaders like Hinge Health prove that domain expertise and strong unit economics can overcome broader market headwinds. The company also faces fundamental businessmodel questions. valuation, raised $2.5B
Because I don’t think Initial Traction is at all nebulous in SaaS — and I think it occurs earlier than many think. Well it means two things: >> First, that your SaaS product’s customer base (and revenue) is compounding. And that’s where the power and leverage is in SaaS. >>
The Talent Reckoning Here’s what I’ve learned from talking to 200+ SaaS founders over the past six months: The companies shipping great AI aren’t necessarily the ones with the biggest AI budgets or the fanciest ML infrastructure. The $939B Question: Is AI Eating SaaS or Feeding It?
After years of drought, 2025 has delivered a scorching hot public market for tech companies so far, with some eye-popping returns that should have every SaaS founder and investor paying attention. What This Means for Your SaaS Company If You’re Series C+ and Growing Fast The window is open, but it won’t stay open forever.
The 5 Key Things You Need to Know About Modern Go-To-Market Adam Gross, former CEO of Vimeo and Heroku and and veteran of Salesforce and Dropbox joined SaaStr Annual for a deep dive on the evolution of SaaS go-to-market strategies. What he shared was pure gold for any SaaS founder trying to navigate the complex world of GTM motions.
The reality is if you read the stories of a lot of SaaS successes, almost all of them had patches where, as meteoric as the growth seemed, they had patches when growth slowed, when things were harder, when they needed more money, or when they almost ran out. And that means that 99 percent of startups can’t even raise venture capital.
After nearly two decades building infrastructure companies from zero to IPO, Dave has distilled the repeatable patterns of successful scaling into a framework that works across any B2B SaaSbusiness. This specific threshold serves as a critical signal that your businessmodel has legs.
The current public market environment might look like a great SaaS crash for many people. As things appear to slow, how do we get back to the fundamentals, find the things that are great about SaaS that are measurable, and help people see the value in your business? In reality, it’s not a crash. Why does the rule of 40 matter?
Laiva Becoming the platform of choice for life science companies and research institutions by creating a two-sided marketplace with significant SaaS components. SaaS vs. AI: A Misleading Analogy Unlike SaaS, AI isn’t necessarily disruptive to the existing tech stack.
Freshworks is a successful public SaaS company that has a humble beginning in the small town of Chennai, India. Big Bet #2: Find Tomorrow’s Great Anglers — Hire Talent With A Learning Mindset In 2010 and 2011, San Francisco was the place for SaaS talent. It helped them get funding in the first round.
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