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Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services? Now how much to invest is a different question. Up to 20% of the ACV is usually OK and you will still be seen as a software business, not a services business. At $500m ARR, OneStream gets about 8% of its revenue from professional services.
So Jamin Ball of Altimeter has a great summary of the cumulative revenue growth of all public SaaS companies … and it’s not a great story: Aggregate net new ARR added in Q1 from the software universe isn't looking good! Aggregate quarterly net new ARR added across the cloud software universe dropped to just $1.65
An analysis of their investment patterns since 2020 doesn’t just reveal the accelerator’s strategy—it provides a map to the entire startup ecosystem’s next chapter. The Wiz acquisition and the overall growth rates of security companies as a durable budget within software spending has propelled security more broadly.
The New Rules of AI Investing: Why Speed Beats Strategy and Labor Budget Is the New Software Budget The pace of AI advancement has fundamentally broken our traditional frameworks for thinking about technology adoption, market timing, and competitive moats. ” This represents a fundamental shift in venture investing criteria.
Speaker: Brad Pinneke, VP of Business Development at Payrix and Worldpay for Platforms
In this webinar, Brad Pinneke, Vice President of Business Development at Payrix and Worldpay for Platforms, will dive into the 7 must-have criteria for evaluating payments partners, helping you maximize both efficiency and the long-term value of your investment.
Constellation Software is a $30b+ publicly-traded software holding company employing more than 25,000. 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. Growth Source. Net Growth.
Q: What are the most common mistakes people do while investing? My top mistakes in venture investing at least: Investing when I didn’t 100% believe in the CEO. No matter how interesting the metrics, even the product is, don’t invest if you don’t 100% believe in the CEO. Investing when the CEO is a bit full of s**t.
For the subsequent ten years in software, we’ve optimized every little bit of how we sell it. But today, it’s different because the kinds of software we sell aren’t the same. Six months ago, security was the number one prohibition preventing businesses and software companies from buying AI. It isn’t predictable.
Every week I’ll provide updates on the latest trends in cloud software companies. Will the macro turn in favor of software buyers? We’ll see how the rest of software earnings shake out - but so far I’d categorize the guides / outlooks for the year as “meh” at best. Follow along to stay up to date!
Software companies are looking, feeling, and acting more like merchant services providers. So let's take a closer look at where forward-thinking FIs are investing their resources to stay in the game. So let's take a closer look at where forward-thinking FIs are investing their resources to stay in the game. It’s everywhere.
When SaaStr Fund made the first investment in RevenueCat back in 2018, nobody could have predicted that this “simple API for managing in-app subscriptions” would become the infrastructure powering 33% of all mobile subscription apps and reach a $500M valuation in 2025. The SaaStr Fund Thesis: Mobile Subscriptions Will Explode.
You want your orders to reach your customers quickly and safely, and investing in the best shipping software is the most reliable. The post Best Shipping Software Compared appeared first on The Daily Egg.
How much value does a successful software startup create per dollar of venture investment? Let’s call the value generated per venture dollar the MOIC (multiple on invested capital). Over the last 30 years, a venture dollar invested in a successful US software startup generated $10 of value. Notes on the data.
It includes a breakdown of the Sales AI landscape, adoption of GenAI and Sales software across buyer groups. GTMfund’s 3 Areas of Focus for Investing Thanksgiving weekend is always a period of reflection and gratitude. Reflection across go-to-market trends, but also on the investment front (not to mention community !).
We’re obviously written up a lot about Fundraising and Investing here on SaaStr.com, but time and time again, SaaStr CEO and Founder Jason Lemkin has seen so many Founders sign a bad term sheet based on gut instinct, VC celebrity or vibes, and while that may be fine, it’s not enough.
In “Do software companies actually have good margins?”, ”, Benn Stancil makes a case for a counterintuitive point : Software companies are much less profitable than they might seem. Because the research & development costs associated with software should be part of their cost of goods sold.
This isn’t feature addition—it’s fundamental workflow replacement that’s compressing overall software spend. The Disruption Math Can Be Brutal : In contact centers, AI replaces 40-50% of human agents but only increases software ACV by 50%. Consolidation Wave Incoming : Mature markets consolidate. 150 billion.
Global Expansion : With customers spanning 135+ countries and continued international investment, HubSpot has successfully created a global business with significant growth opportunities (their TAM is $76B in 2024, growing to $128B by 2029, with <10% penetration across all products).
Speaker: Michael Veatch, Senior Director, Implementations & Ella Aguirre, Director of Solution Consulting
Embedding payments can be a transformative step for software companies looking to enhance their platform capabilities, boost customer satisfaction, and drive long-term growth. Don’t miss this unique opportunity to hear live insights from experts who have helped countless software platforms implement payments with ease!
Private Equity does have record amounts to invest. #4. SaaS and Software Multiples Are at Near All-Time Lows — Because Growth Has Slowed We already know this, but why? Software growth is the next big phase from AI investment. But Software Will Bounce Back Soon. Coate believes it’s simple.
Its product provides software to spas and salons but it’s not new (the first salon software came out in the 80s), and neither is a lot of the vertical software getting hot today. 10-15 years ago, salon and spa software was essentially a calendar with bells and whistles. readily available that didn’t exist before.
Dear SaaStr: How Does SaaStr Fund Decide What to Invest In? Let me give my investing process at least for SaaStr Fund : First, I try somehow to identify before a first meeting if there is a >=2.5% chance of investing. Second, I then look for reasons not to invest. No matter how appealing the investment is otherwise.
Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now The Great Services-To-Software Rotation There's a lot of debate right now about the economic impact of GenAI. They contend that AI agents, capable of handling infinite workloads, will ultimately reduce the need for software spend.
Think your customers will pay more for data visualizations in your application? Five years ago they may have. But today, dashboards and visualizations have become table stakes. Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics.
Dear SaaStr: How Can I Get The Attention of Software VCs? # A third founder I funded at Owner, copied this format and I invested as well: 2 Cold Emails I Funded For Millions Finally he’s a great recent example of Mangomint, an SMB for the beauty industry. The post Dear SaaStr: How Can I Get The Attention of Software VCs?
Every week I’ll provide updates on the latest trends in cloud software companies. Starting and scaling a software company was really hard. If you, as a software company, got to a certain scale and brand awareness, it was really hard for others to catch you. Follow along to stay up to date! So what was the implication?
This early investment in regulatory compliance has become their key differentiator against Tether and newer entrants. While competitors focus on features, investing early in SOC 2, HIPAA, FedRAMP, or industry-specific certifications can become your strongest competitive advantage. Circle trading at $85 up from $31 IPO price.
Q1 was a very weak quarter of software earnings. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. Some software companies also have seasonality in the “payback.” Altimeter is an investment adviser registered with the U.S.
The P&L differs from a classic software company. Investment in web3 companies will fall by at least 60% year-over-year in 2023. What other business suffered a loss of 80% of revenue & went from burning $2b per quarter to producing more than a hundred million in profit? So does the corporate structure. Net Revenue, $m 251.6
In my own portfolio , more of my investments had a record month in October than a rough month. And they say 2023 will be a banner year for enterprise software spend at least — growing a stunning 11% to $880 Billion. 32% are increasing investment in artificial intelligence (AI) and 24% in hyperautomation”, per Gartner.
The shift from “innovation budget” to “operational budget” means AI tools must compete directly with established softwareinvestments—and many aren’t winning those comparisons yet. The Hidden Enterprise Pipeline Card spend data, while valuable, captures only a portion of enterprise AI investment.
What is an integrated software vendor? An integrated software vendor more commonly known as an ISV is a software company that engages in a partnership with a payments provider in order to integrate payment processing capabilities into their platform. 3 things you should know about integrated software vendors 1.
In the future, every software will have a web3 component. We are thrilled to announce our investment in Allium , alongside friends at Amplify & Kleiner Perkins. Stripe now allows its merchants to accept payments in Ethereum, Solana, & Polygon without transaction fees. PayPal’s stablecoin has more than $0.5b
Ian Hillis welcomes David Blair, Senior Director of Product Management at Worldpay for Platforms, on PayFAQ: The Embedded Payments podcast to explore the critical roles of merchant underwriting and onboarding for software providers. Check out this helpful blog: The essential elements of merchant underwriting for software companies.
In this episode of PayFAQ: The Embedded Payments Podcast, host Ian Hillis welcomes Matt Downs, President of Worldpay for Platforms, to discuss software-led payments predictions for 2025 and beyond. remains the largest interchange and software market, Matt predicts a loosening of regulatory constraints.
I try to look at two things in Vertical SaaS startups, at least when investing : Will everyone in the vertical / industry use it? Many Vertical SaaS leaders do payroll, finance, accounting, and much more — not just the core software. Dear SaaStr: How Big Should The Addressable Market Be to Go into Vertical SaaS? So be honest.
The term SaaS platform gets tossed around a lotbut what does it actually mean, and why does it matter for today’s software companies? In this article, we’ll break down what a SaaS platform is, highlight real-world examples, and explore key strategies to succeed in the fast-moving software-as-a-service industry.
AI in B2B SaaS: The Incumbent Advantage On the AI revolution in B2B software, it’s the age-old ‘startups are innovating and racing to get distribution, and the bigger companies have distribution and are racing to innovate.’ “We had the best board meeting we’ve ever had,” according to Brian.
” Investing for growth has been pretty flat year over year for SMBs, which means there is money there, but they’re holding onto it. This gets more challenging when you have stakeholders who aren’t the ones buying the software. There was no software yet. So I call this the wait-and-see economy.”
GitHub, founded in 2008, is a leading platform for software development and version control that has made waves since 2018 with its AI Copilot. Don’t underestimate the investments you need to make here to be compelling to your customers. Another big investment during rapid growth is digital moments.
That expectation has driven software companies to build and grow their platforms rooted in customer centricity. As the demand for seamless platform experiences intensifies, theres only one way for software companies to effectively deliver on customer-centric strategies: with a digital-first approach.
Snowflake’s $250 million purchase of Crunchy Data and Databricks’ $1 billion acquisition of Neon represent a fundamental shift in how B2B software companies are preparing for the era of autonomous AI agents. This acquisition builds on previous AI investments, including the 2023 purchase of Neeva, a generative AI search startup.
Every week I’ll provide updates on the latest trends in cloud software companies. There’s a real fear among incumbents that they’ll get reduced to dumb databases as the software stack shifts from cloud apps to agents. This is now an important trend to watch in the application software space. Headline CPI: 2.4%
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