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The 6 Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue

SaaStr

Dear SaaStr: What are The Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue? One of the biggest mistakes I see after $1m in trying to enter new market segments, new verticals, where you have zero traction. It’s one thing to invest in an area where only 5% of your business is today.

Scaling 275
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A $30B Software Company from a $15m Investment

Tom Tunguz

A former venture capitalist, Mark Leonard started Constellation in 1995 with $15m of outside investment & a goal of buying vertical software companies with a moat & good unit economics. Vertical software companies pursue a particular market segment like car dealership management or hotel management software. Acquisition.

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Your Customers' Profitability is Your Startup's Future Health

Tom Tunguz

Ten years ago today, I wrote a post titled “ Choosing market segments on customer profitability. Market Cap in $b. Revenue in $b. The grocery store generates $44b in annual revenue but only 6% falls out the bottom of the P&L as earnings to invest in new projects like a modern data stack.

Startup 231
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Dear SaaStr: How Does a SaaS Startup Break Out in a Crowded Market?

SaaStr

Many Bigger Cos aren’t invested deeply in a particular platform. Another way to look at it is any vendor sort of has to ignore any market segment that is < 10% of their revenues. Gorgias did the same for contact center in e-commerce. E.g., their Shopify or HubSpot integration might be weak. Or not even exist.

Startup 233
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Unique Ways to Use the B2B SaaS Business Model to Leverage Your Business’s Revenue Growth

Subscription Flow

A major issue that arises, especially in the B2B SaaS business model, is how to break into the upmarket market as startups develop into scaleups that are primarily focused on increasing their market capitalization. In their early stages, SaaS software startups typically target the early adopters in the tech or mid-market segments.

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5 Interesting Learnings from Procore at $1 Billion in ARR

SaaStr

Strong growth, break-even margins, and very high quality revenue. It’s still time to invest! So they have pushed operating margins even higher, but do have contingency plans to do so if market conditions get tougher (i.e., Many see the “mid-market” as the toughest market segment to win in.

Scale 212
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5 Lessons from Scaling Six SaaS Products to $100M+ with Samsara’s Chief Strategy Officer

SaaStr

Discovering the entire market and mapping out all potential verticals early in the process. The incredible power and value of the mid-market segment. So, they engaged with the entire market very early and understood the common needs across verticals. Going multi-product early. Let’s take a closer look at these learnings.

Scale 252