From Product-Market Fit to Product-Market-Price Fit

OpenView Labs

The researchers blame “premature scaling” as the root cause, pointing out that 70% of startups in the study scaled before they were ready and that startup founders substantially underestimate how long it takes to validate their market. It’s no wonder that the startup community obsesses over finding product-market fit. After all, product-market fit is a critical prerequisite to being able to scale in a manner that creates long-term value for shareholders.

From Product Market Fit to Scale – Perspectives from Founder & Investor (Video + Transcript)


Join Rene Yang Stewart, Co-Head and Principal, Vista Equity Partners, and Monica Enand, Founder and CEO, Zapproved, as they discuss growing a company from product market fit to scale. Vista Equity Partners invested in Zapproved in 2017. Most people know us for some of our largest deals, like the Markettos and the Mindbodys of the world, but we actually invest all the way down to the growth stage. Instead, every one of our investments needs to be successful.

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SaaS Pricing Models & Strategies Demystified


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?

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


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? How can founders determine which variable they should choose for their product? Chetan Puttagunta , General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model? What does Mark advise founders when it comes to price anchoring and discounting?

Seed Investing Today: What’s Changed, What Hasn’t with Aileen Lee and Jason Lemkin (Video + Transcript)


What Nobody Tells You About Seed Investing with SaaStr CEO Jason Lemkin and Cowboy Ventures Founder and Partner Aileen Lee. I think it gives us a perspective that maybe we don’t get in some other places, in addition to many great investments over the years. On either a scale of 1 to 10 or a percentage basis, where is seed investment? I think that’s going to be an awesome time to invest, but I don’t think we’re quite there yet.

It’s Time to Resegment Your Market (and Revise Your Pricing)

OpenView Labs

The US election is behind us, many of our customers at Ibbaka have worked out their Covid-19 and post Covid-19 strategies, and we’re moving into a new market in 2021. Given the changes we’ve all experienced in 2020, now is the time to resegment your market. More SaaS pricing resources.

Ten Year's Worth of Learnings About Pricing

Tomasz Tunguz

Last week, I shared a presentation with an executive team at a large public SaaS company on everything I’ve learned about pricing. Here’s a summary of the frameworks and theory that I’ve aggregated over a decade of investing in startups. Why do we set prices? Setting aside the important reasons of generating revenue and maintaining solvency for a business, there are many other reasons to set price. There are four components to pricing: 1.

8 Customer Discovery Questions to Validate Product Market Fit for Your Startup

Tomasz Tunguz

Customer knowledge, both qualitative and quantitative, informed product development, and that research became a key part of AdSense’s success. During a typical diligence process, we will interview customers and might ask them questions like these: How did you hear about the product? What process did you use to pick this product over the competition? Why did you choose this product? Which teams in the company use the product, and how has that changed over time?

SaaStr Podcast #398 with Salsify Co-Founder & CMO Rob Gonzalez


398: Rob Gonzalez is the Co-Founder & CMO @ Salsify, empowering brand manufacturers to deliver the product experiences consumers demand at every point in their buying journey. How does Rob think through pricing today in a way that encourages land and expand?

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.

SaaStr Podcast #395 with UserTesting CEO Andy MacMillan


As for Andy, prior to UserTesting, he was the Chairman and CEO @ Act On Software and before that held several positions at Salesforce, including COO – Products Group. Before Salesforce Andy spent close to 5 years at Oracle as VP Product Management. We use tons of their products.

New pricing: more affordable to get started, better value as you scale


Over the last several months, with input from many of our customers, we’ve been working toward a new pricing scheme that we believe better aligns with the way businesses use and grow with Vero. Today we’re releasing our new pricing, available to all new Vero customers. The principles driving our new pricing are outlined below. Every plan in our new pricing includes a healthy number of customer records, messages and “events tracked” monthly.

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.

How to nail your product market fit and sales pitch with a value proposition diagram

Tomasz Tunguz

Products aren’t sold in isolation - they exist within ecosystems. Great product market fit and sales pitches hinge on understanding and serving all the members of an ecosystem. Should a product fail to meet the needs of any one member, company success and sales velocity will falter. I’ll walk through three examples of the VPD: Google AdSense, Expensify and Axial Market. Grey arrows represent product pull and green arrows signify revenue flows.

SaaStr Podcasts for the Week with Facebook Workplace and Slack ? May 29, 2020


337: Christine Trodella is Head of Americas for Facebook’s Workplace product, the communication tool that connects everyone in your company, through Groups, Chat, Rooms and Live video broadcasting. Prior to Workplace, Christine was Head of America’s for Facebook’s Audience Network and before that spent 5 years as a Group Director across multiple different sales and account teams within Facebook’s mid-market channel. What do CIOs most want in pricing?

How to Switch to a Freemium Pricing Model and Grow Your Business


Often times, when marketers think about growth, the first strategy to come to mind is finding ways to make the product better. The better the product, the more people who'll buy it, right? The truth is that to stimulate growth, marketers should instead focus on the experience customers have at every product touch point. After all, experience is what makes customers happy and excited to come back and use the product again. Confirm product/market fit.

Scaling from $1MM to $500MM ARR: 5 Strategies to Drive Your Next Wave of Growth with Intercom (Video + Transcript)


She will share her top 5 lessons learned in building and scaling SaaS businesses from $1M to $500M in ARR including expanding to serve upmarket customers, moving from product to platform, and how to hire well to drive breakthrough customer experiences and business growth. Maybe it was to launch a new product, maybe it was to get to $1 million in ARR, and when you get there, it’s amazing, right? First strategy, expand your market. Show them your new product.

The 8th DO for SaaS startups - Stay on top of your KPIs

The Angel VC

I’ve tried to illustrate this in the following diagram: (click image for larger version) As you can see, I segmented the company lifecycle into three major phases: pre product/market fit, post product/market fit but pre-scale, and post-scale (being fully aware that there is no distinct definition of “product/market fit” and “scale” and that the transition from one phase to the next one is a gradual one).

SaaStr Podcasts for the Week with Auth0 and CircleCI — January 31, 2020


How does being a developer-first product fundamentally change the go-to-market? How does Eugenio approach the issue of agency when selling to CIOs but having devs use the product? What have been Eugenio’s biggest lessons in what it takes to make a freemium product successful? How does Eugenio approach pricing today through 4 different variables? How does Eugenio adopt a variable pricing mechanism that does not discourage usage?

SaaStr Podcasts for the Week with Matrix Partners and EZPR — February 21, 2020


What does David believe is the crucial step missing in B2B when it comes to finding product market fit? What have been David’s learnings on how to integrate sales and marketing so tightly? How does marketing and customer success intertwine to be successful? David Skok: So I actually, I’m definitely a believer that it definitely gets easier and I think we see that in our venture investments too. And which target market should you go after?

SaaStr Podcast #213: Tom Tunguz, GP @ Redpoint Ventures On Why Scoring Leads May Actually Be Dangerous


As for Tom, he joined Redpoint in 2008 and has since led investments in Kustomer, Looker, Expensify, and Gremlin all prior guests on the show, I hasten to add. Before joining Redpoint, Tomasz was the product manager for Google’s AdSense social-media products and AdSense internationalization. What time frame from SAL to closed lead suggests product market fit? What is Tom’s most recent investment and why did he say yes? Welcome to Episode 213!

SaaStr Podcasts for the Week with Chargebee and Glassdoor — November 1, 2019


How does Krish think about purely serving the SMB market? Does one have to expand the product line to retain customers? How should this data feedback into your product roadmap and pipeline? * My co-founders cut their teeth at Zoho for over 10 years building product and for over six years [inaudible] software products. Yes, it does not scale, but the beauty is the product. In terms of the product market fit falling apart.

The 7th DO for SaaS startups – Build a repeatable, profitable sales process

The Angel VC

7th DO for SaaS startups Build a repeatable, profitable sales process Sales is a very different animal depending on the stage of your company, the market segment you're going after and on whether we're talking about inbound sales or outbound sales. If you need a field sales force to sell your product, assume that your ARPA needs to be at least $3000 per customer per month if not higher (enterprise sales).

Using Price & Demand Curves to Inform Startup Product Roadmaps

Tomasz Tunguz

The traditional theoretical price demand curve is often drawn like this. The chart makes two points: there is some relationship between price and demand / revenue opportunity, and customer segments underpin that relationship. Each segment demands different products to satisfy different needs and presents a different revenue/profit opportunity. Even if the details are very hazy, price demand curves are useful tools to inform product strategy and prioritization.

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Saastr Podcasts for the Week with Gong and Brex — June 7, 2019


To date, Amit has raised $68m in funding for Gong from the likes of Norwest, Battery Ventures, Cisco Investments, and Wing Venture Capital, just to name a few. Finally, before that, Amit was the Founder & CEO @ SparkThis, an outsourced marketing and sales service for cloud companies. With many products starting as free, how does Amit think about when is the right time to start charging for your product? Is the product competitive?

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How Atlassian built a $20 billion dollar company with no sales team

Inside Intercom

When you think about how “traditional” enterprise-focused firms – think Microsoft, Oracle and IBM – sell software, it usually follows a well trodden formula: negotiations, long sales cycles and a “checklist” of features demanded by decision makers who seldom use the products they buy. The company behind breakout products like Jira and HipChat and who recently acquired Trello now has more than 125,000 customers, all without any of the formal sales processes above.

The Rules You Can Break, The Ones You Can’t With Tradeshift (Video + Transcript)


Exited to Semantic in 2008 and had a good exit for the early SaaS businesses then set up Notion and we focus on SaaS companies, mainly in Series A in the European market. Jos White : We were fortunate enough to lead a Series A investment into Tradeshift back in 2010, I think. Notion Capital was really the first fund to have the guts to invest in Tradeshift. And to be fair, most of us building companies, building products all of that, we have no idea either.

Top Global SaaS Trends You Should Know with Google Cloud and Zenoss (Video + Transcript)


As a global technology provider powering thousands of SaaS companies, Google is at the forefront of driving exciting and innovative technologies to market. So Gartner says 2018, the SaaS market is over $73 billion dollar, it’s growing very, very quickly. And whether they want to know more about security or scalability or automation or AI, the customers are really demanding that the vendors are coming to market with answers to these questions.

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SaaStr Podcasts for the Week with Matrix Partners, ActiveCampaign, Insight Squared, and Dropbox — June 29, 2019


Jason Lemkin is the Founder @ SaaStr, the world’s largest SaaS community and leading early-stage SaaS fund with investments in Automile, TalkDesk, Algolia and more. Jason Vandeboom is the Founder of ActiveCampaign, a sales and marketing automation platform that enables small businesses around the world to meaningfully connect and engage with their customers. What can founders do to their pricing model to extract as much value from each customer?

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SaaStr Podcasts for the Week with Mapistry and Slack — November 29, 2019


Product analytics? How does Allie explain the macro market size to VCs when they initially see the small customer segment? * Allie Janoch: So I always knew I wanted to go to school and major in computer science and build products or maybe I guess I didn’t really know what I would do with the programming, but I thought it sounded cool and I didn’t really get an inkling though that I wanted to be an entrepreneur or start a company until much later.

SaaStr Podcast #209: Amanda Kleha, Chief Customer Officer @ Figma Discusses How To Ensure Successful Cross-Functional Communication


Amanda Kleha is the Chief Customer Officer @ Figma, the startup that allows you to turn ideas into products faster through design, prototyping and feedback gathering, all in one place. Prior to Figma, Amanda held numerous roles at Zendesk including SVP of Marketing and Sales Strategy. Amanda joined Zendesk as the first marketing hire and over the next 7 years Zendesk grew to over 2,000 employees. What does Amanda mean when she says “pricing is made up of 3 components?”

Four (more) things we look for in SaaS startups

The Angel VC

Since then we've looked at hundreds of SaaS startups and have gained additional insights through the work that we've been doing with the SaaS startups that we have invested in. In the original post I focused primarily on early metrics as an indicator of product/market fit and of a favorable CAC/CLTV ratio in the future. You may have a fantastic solution for a big problem, but if no one is looking for it, marketing it will be much harder.

Understanding Annual Contract Value (ACV)


measuring and tracking what ACV values make sense for your product, market, and customer base will help inform how you invest in things like sales and marketing. Understanding your ACV, and what values make sense for your business, can help you identify your most valuable customers, optimize your marketing and price strategy , and track the health of your SaaS company. SaaS Metrics saas pricing strategy annual contract value

Four Steps to Scaling to $250M from Stack Overflow


The four key pillars he lays out are: Product market fit & expansion. Go to market approach & expansion. 1 Product-Market Fit and Expansion. Product. Is your product sound, and does it solve a big problem for customers, enough for you to scale?

10 Learnings From Mark Suster’s “Funding In the Time of Coronavirus”


VCs are Worried about “Deflation” in terms of pricing funding rounds. Mark sees multiples falling, which doesn’t just lead to lower prices … it leads to a Stop. “It makes price discover much more difficult.” It Angers Folks, So VCs Default to Newer Deals vs. Lower Priced Rounds. It’s easier just to go find a brand new investment with less overhang and fewer issues. Mark recommends changing product marketing ASAP.

Behind the Round with SaaStr: Klue Raises $15 Million from Craft Ventures for Competitive Analysis


Klue , which operates an AI-based competitive analysis platform, announced a $15 million Series A investment this week. The round also saw investments from angels like Frederic Kerrest, who is the co-founder of Okta. . Tom Taulli.

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Raising Funding During COVID with Homebrew Partner Satya Patel (Video + Transcript)


As much as VCs spend time evaluating the markets, evaluating businesses, trying to predict the future, we don’t know any more than any of you in relation to what’s going to happen here over the next 12, 18, 24 months. It’s definitely an active market at the seed stage.

SaaStr Podcast #355 with Homebrew Partner Satya Patel: “The PPP You Really Need for Raising Capital During a Pandemic”


355: Despite the global pandemic, seed investing remains hyperactive amongst VCs. Satya Patel: The other thing that VCs are doing is one very important part of their jobs, and that’s meeting companies and studying markets to figure out where they might want to invest eventually.

Top 10 Resources To Help You Manage Your SaaS Sales Like a Genius


maintain healthy atmosphere in your Smarketing team, make smart choices regarding your SaaS sales model, strategy, pricing, . better understand Inbound, and learn about major tactics that you can implement, master your SaaS pricing page and increase your conversions. (We From sales & marketing alignment to SaaS salespeople compensation. And from SaaS sales models to SaaS pricing. 6 Essential skills for SaaS inside sales team to boost product’s sales.

The Unspoken Hard Bits of Bootstrapping


We’ve all read the tales of founders wrestling for years to find product market fit , of co-founders squabbling over equity, of the CEO riddled by anxiety as he drains his infant daughter’s college fund to keep his start-up afloat for another month.