SaaStr

JUNE 5, 2020

This article looks at the history of SaaS as it relates to financial capital and production capital. I argue that standard saas metrics make it possible for founders to scale using debt capital (production capital thats cheaper) instead of solely relying on venture capital (financial capital thats more expensive). .

Venture Capital 222

Venture Capital Technical Review SaaS Scale 222

OPEXEngine

DECEMBER 7, 2021

The pricing model, which leads to increases or decreases in revenue based on how much customers engage with a service, has been gaining on the more traditional subscription model as the main way SaaS companies make money. That rises to just over 40% when usage-based subscription tiers are included. Enterprise companies.

Subscription 52

Subscription Payment Features Pricing SaaS 52

SaaStr

APRIL 28, 2019

Only 8% of Slack’s revenue last year was from direct conversion from Free to Paid — and that’s down from 10% the year before. Today, Slack has 575+ customers paying more than $100k a year, which important now accounts for 40%+ of its revenue. That’s way, way up from just 22% of revenue from $100k+ deals in 2017.

Scale 279

Scale Venture Capital SMB Enterprise 279

SaaStr

DECEMBER 5, 2022

Yet, funded startups can learn a lot from the bootstrapped ones to grow smoothly and generate revenue. In SaaS, retention is usually driven by recurring revenue, cross-selling, and up-selling. This is where SaaS companies generate most their revenue. Venture capital-backed companies update their pricing once every 2.8

Payments 130

Payments SaaS Payments Payment Solutions Venture Capital 130

SaaStr

MARCH 15, 2021

. “The 5 Metrics You Should Track to Maximize Your Company’s Valuation with Thomas Tunguz of Redpoint Ventures” This fun, informal session with Thomas (and pinch-hitting from Jason Lemkin during an IT glitch) was a great deep dive into where SaaS is, right now. #2.

Cloud 140

Cloud CTO Scale Venture Capital 140

Buffer Resources

AUGUST 2, 2023

I was working at a Venture Capital firm and was feeling the itch to create something new on my own. After some time in Venture Capital, I took the knowledge I built around market research and started applying it to my personal life. These two additional revenue streams immediately moved the needle for the business.

Business 94

Business Venture Capital Technical Review Trends 94

Chargify

AUGUST 6, 2019

Welcome to the Subscription Rockstars series! And, of course, we will pay special attention to how their subscription billing models and pricing strategies contributed to their growth. Revenue growth: 2006: Unknown. Of course, it’s important to note that HubSpot raised a significant amount of capital in their first five years.

Subscription 40

Subscription Payment Features Revenue Software Review 40

ChurnZero

SEPTEMBER 23, 2022

I’d wager that 99 of them would say revenue growth was their north star. Since the dawn of business, this was the name of the game and why the venture capital space continues to soar. . Between 2017 and 2022, the venture capital & principal trading market in the US grew at an annualized rate of more than 11%.

Education 98

Education Customer Success Venture Capital Churn 98

SaaSOptics

JUNE 24, 2021

In a recent webinar, SaaSOptics CEO Tim McCormick and Bigfoot Capital CEO Brian Parks discussed the changes that have taken place across the SaaS financing landscape, particularly those in debt financing of SaaS companies. . In a recent webinar, Parks described Bigfoot Capital’s approach as “70% science, 30% art.” .

Finance 59

Finance Venture Capital SaaS Banking 59

SaaStr

JULY 5, 2019

The Ultimate Guide to Scaling, Sales & Raising Capital (i.e., How Would a Person Start a Venture Capital Fund? A Step-by-Step Guide to Revenue Growth with Mark Roberge, ex-CRO at Hubspot. What’s A Typical Price Increase I Can Expect When Renewing A SaaS Subscription? People do seem to want to know.

Sales Hiring 171

Sales Hiring Scale Venture Capital Acquisition 171

ChurnZero

JANUARY 18, 2024

The role of the chief customer officer has become an essential function in subscription-based business models such as software-as-a-service (SaaS), where customer retention is paramount and requires executive-level leadership. SaaS businesses, meanwhile, benefit from predictable streams of recurring revenue.

Development Team Review 52

Development Team Review Technical Review Software Review Sales Hiring 52

SaaStr

JULY 22, 2020

A discussion about venture capital and the effects Covid-19 has had on in the industry. Join Nicole Quinn, General Partner at Lightspeed Ventures, Ann Miura-Ko, Founding Partner at Floodgate, and Alex Konrad, Senior Editor at Forbes as they talk about what they have seen in the industry lately and how they are moving forward.

Venture Capital 217

Venture Capital Investment Travel Marketplace as a Service 217

ChurnZero

MARCH 4, 2021

ChurnZero, the highest-rated and fastest-growing Customer Success platform for subscription businesses, today announced that it has received $25 million in Series B funding led by JMI Equity, a growth equity firm focused on investing in leading software companies. For more information visit [link].

Venture Capital 98

Venture Capital Subscription Payment Features Innovation 98

SaaSOptics

MAY 22, 2018

Magazines, newspapers, life insurance, phones, security services, and a long list of products and services have been sold for decades using the subscription model. The difference now is how important and meaningful the subscription model has become to the national economic engine. What has changed?

Subscription 40

Subscription Payment Features Technical Review Airlines 40

SaaSOptics

MAY 22, 2018

Magazines, newspapers, life insurance, phones, security services, and a long list of products and services have been sold for decades using the subscription model. The difference now is how important and meaningful the subscription model has become to the national economic engine. What has changed?

Subscription 40

Subscription Payment Features Technical Review Airlines 40

Baremetrics

AUGUST 23, 2021

Beginning Stage: At the start, you’ll either not have any revenue or far less revenue than is sustainable. Customer-Funded Stage: At some point, your revenue stream will get to the point where customers can finally fund the day-to-day operations of the business. Focus as much as possible on your burgeoning revenue stream.

Business 96

Business Payment Services SaaS Payments Payment Solutions 96

Tom Tunguz

OCTOBER 12, 2014

Today, we’ll explore one of the enterprise behemoths, both in market cap and average revenue per customer: WorkDay. In 2009 and 2010, the company recognized more revenue from services than subscription. In 2011, the year of the IPO, services still accounted for 33% of revenues.

Benchmarks 109

Benchmarks Deferred Revenue Venture Capital Outsourced Development 109

Baremetrics

MAY 7, 2019

Company C was funded by pre-orders from customers, a friends and family round, and then through revenue-based financing for a period of time. For Companies A, B, and C, they all exchanged equity for capital, leveraged debt, and used profits from customers to fund their startup. Buffer spent $3.3 Reilly Chase of HostiFi.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

User Pilot

AUGUST 10, 2023

According to venture capital firm Sequoia , the standard DAU/MAU ratio is 10-20%, with only a handful of companies having over 50%. ” For example, a business communication tool like Slack expects users to log in daily, but invoicing tools know their users will only visit 1-4 times monthly.

Metrics 81

Metrics Venture Capital Benchmarks Engagement 81

Buffer Resources

AUGUST 2, 2023

I was working at a Venture Capital firm and was feeling the itch to create something new on my own. After some time in Venture Capital, I took the knowledge I built around market research and started applying it to my personal life. These two additional revenue streams immediately moved the needle for the business.

Business 52

Business Venture Capital Technical Review Trends 52

SaaStr

NOVEMBER 1, 2019

About the episode: Tien Tzuo is the Founder and CEO of Zuora, one of the fastest-growing SaaS companies that has been at the forefront of the rise of subscription business models. In a similar position at SuccessFactors, he grew revenues to more than $200m and over 80% year-over-year growth. Episode No. Episode No.

Technical Review 153

Technical Review Development Team Review Scale Software Review 153

Baremetrics

APRIL 23, 2021

SaaS businesses rely on customer loyalty for recurring subscription revenue rather than one-time purchases. They have to accurately predict how long customers will maintain their subscriptions to forecast their financial future appropriately. Check out our post on 30 SaaS founders on raising money and venture capital.

Metrics 71

Metrics Customer Lifetime Value SaaS Venture Capital 71

ProfitWell

DECEMBER 4, 2019

And with the field having undergone a couple of “ knockout expansion years ,” with more revenue pouring into SaaS than ever, it has never been a better time for a young SaaS company. SaaS, or software as a service, is a delivery model in which a centrally hosted software is licensed to customers via a subscription plan.

Business Model 54

Business Model SaaS Payments Payment Methods Payments 54

SaaSHolic

FEBRUARY 23, 2022

We’ve decided to put together a killer list, categorized and organized to help you find and consume world-class SaaS and subscription content from the best people and companies in the market. The list is organized into four categories: entrepreneurs, venture capitalists, communities, and companies.

Venture Capital 52

Venture Capital SaaS Social Media Entrepreneurship 52

Outseta

OCTOBER 12, 2020

The compatibility of your idea and life circumstances with bootstrapping The debate over the merits of bootstrapping versus going the venture capital route when building your company rages on—I for one am guilty of fanning these flames. The question is not do you prefer bootstrapping or venture capital.

Venture Capital 144

Venture Capital Entrepreneurship Scaling SaaS 144

SaaSHolic

FEBRUARY 6, 2023

We’ve decided to put together a killer list, categorized and organized to help you find and consume world-class SaaS and subscription content from the best people and companies in the market. The list is organized into four categories: entrepreneurs, venture capitalists, communities, and companies.

Venture Capital 52

Venture Capital SaaS Social Media Entrepreneurship 52

Tom Tunguz

JANUARY 31, 2017

On one hand, growth is important in order to raise a venture capital round. To maintain the subscription revenue from the existing customer base requires ever greater mountains of cash. Which is the more important priority? Growth or churn? Churn or growth? Growth shows demand for a product.

Churn 100

Churn Scale Venture Capital Acquisition 100

Andreessen Horowitz

OCTOBER 4, 2023

However, if a company has backing from a venture capital firm, we would recommend that they meet with their venture firms first to review the firm’s existing relationships and/or to get recommendations for lenders based on the company’s stage and preference. What type of asset is the company creating?

Outsourcing Services 117

Outsourcing Services Software Review Scale Banking 117

Chargify

JUNE 24, 2022

The tech sector is facing its biggest downswing in two decades, venture capital is drying up, and as. Things are looking rough for SaaS companies. The post Monetization is Key as SaaS Founders Face an Uncertain Future appeared first on Chargify.

Venture Capital 52

Venture Capital SaaS Pricing Revenue 52

SaaStr

NOVEMBER 12, 2019

We raised $0 of venture capital. We had 13 million of recurring revenue, 100% year over year growth. Today, six years later, Pardot as part of salesforce.com last calendar year did 250 million of recognized revenue, so think about that. We sold Pardot. I sat down with Kyle at lunch. All right, funding optional.

Sales Recruiting 163

Sales Recruiting Scale Outsourcing Services Sales Hiring 163

ChurnZero

JULY 27, 2020

ChurnZero helps subscription businesses fight customer churn. and is backed by leading angles and venture capital firms such as Baird Capital, Grotech Ventures and Middleland Capital. About ChurnZero. ChurnZero is headquartered in Washington, D.C. For more information, visit churnzero.net. .

Software Review 75

Software Review Software Venture Capital Churn 75

ProfitWell

DECEMBER 3, 2019

Do you gun straight for the glamour (and pressure) of venture capital investment? What about a venture capitalist who might be sympathetic to your mission? Venture capital. Venture capital is provided by firms or funds founded specifically to give investment to fledgling companies.

Venture Capital 56

Venture Capital Scale SaaS Benchmarks 56

OPEXEngine

NOVEMBER 22, 2022

These factors resonated well with the investment theses of venture capital firms. Online accounting software provider Xero, for example, was founded in 2006 and now trades publicly at a 22x Enterprise Value to TTM Revenue multiple. The trendline is a logarithmic fit of the mean at each revenue tier.

Business Model 52

Business Model Business SaaS Scale 52

ProfitWell

APRIL 20, 2020

The profitable company has, in the past, raised $175 million in venture capital from firms including Accel Partners and Battery Ventures and was valued at $700 million back in 2015. Sign up for Supercharging Revenue With Optimized Pricing. But not all credit can be given to the crisis. and actionables. SSP reminder.

Wireless 52

Wireless Software Review Venture Capital Technical Review 52

SaaStr

APRIL 7, 2022

I am a partner at Accel, the Global Venture Capital Fund, and I’m very happy to be here with one of these mythical creatures that people were talking about earlier. Meaning if you’re a small business and if you’re under a million in revenue, you can use robots for free right now.

Sales Hiring 260

Sales Hiring Scale Sales Recruiting Outsourcing Services 260

SaaStock

FEBRUARY 14, 2019

With an MBA from the Kellogg School of Management, Rodrigo Baer launched a successful career in consultancy and entrepreneurship, and today is among the top figures in venture capital for early-stage tech companies in Brazil. Aaron Ross, Co-CEO, Predictable Revenue. Talk: SaaS Crystal Ball: Revenue Performance Metrics.

Technical Review 207

Technical Review Scale Entrepreneurship Sales Hiring 207

Kellblog

NOVEMBER 23, 2022

(In a small initial land and big expand model, this may run much higher than 30-40% but that also depends on the definition of land – i.e., is the “land” just the first order or the total value of subscriptions acquired in the first 6 or 12 months). The first block is revenue, optionally split by subscription vs. services.

Technical Review 116

Technical Review Software Review Forecasting Churn 116