SaaStr

MARCH 15, 2022

I like it because it models out two scenarios — one if the current downturn is like 2008, another if it’s like 2000. Redpoint looks at What If this downturn is like 2008, or even 2000. The bounceback was quicker and less severe in 2008, but both took … a long time. Yes, interest rates, inflation etc.

SaaS 252

SaaS Cloud Revenue Marketing 252

The Daily Egg

DECEMBER 30, 2020

He’s a hedge fund manager who had foreseen the shocking 2007-2008 housing collapse. Have you heard of Michael Burry? Having betted against subprime-mortgage bonds ahead of the meltdown, he made about $750 million in profits for his investors and $100 million personally. But how was he able to predict something like that?

Data Analysis 249

Data Analysis Software Review Software Data 249

SaaStr

JANUARY 1, 2023

Change at a pace we haven’t seen since 2008, when the world of SaaS was just so, so much smaller. But they do bounce back fast. — Jason Be Kind Lemkin  (@jasonlk) December 30, 2022. So this last year was one of so much change. Just 12 months ago, Bitcoin was at near-highs, as were many SaaS stocks, and multiples. And then … crash.

Trends 288

Trends Enterprise SaaS Software 288

Tom Tunguz

MARCH 15, 2020

My hunch originates from this analysis of the 2008 crisis. I expect the venture market to slow round counts for a quarter, but then resume. As growth rates fall, valuations should move similarly. But it’s too early to say for sure. Here’s a basic model you can download and play with the inputs.

Sales Hiring 282

Sales Hiring Churn Development Software 282

SaaStr

APRIL 14, 2020

Adapt, Plan Deliver: Founder/CEO Lessons from 2000 & 2008 Applied to 2020 With Twilio CEO Jeff Lawson and Bessemer Venture Partner’s Byron Deeter. This should be an incredible deep-dive on the opportunities and challenges to selling into the enterprise right now.

Enterprise 283

Enterprise Sales Strategy 283

Tom Tunguz

MAY 24, 2023

Ten years ago, Nvidia’s market cap hovered around $4b, down from its previous high of $13b in 2008. Today, Nvidia is the fifth most valuable technology company in the US, worth nearly $1t - just 20% less valuable than Amazon. In a decade, the business increased in value about 250x, compounding at about 74%.

Artificial Intelligence 276

Artificial Intelligence Machine Learning B2C AI 276

Tom Tunguz

APRIL 21, 2020

In particular, narratives stoked three depressions and recessions in the US in 1920, 1929, and 2008. Robert Shiller wrote Narrative Economics , in which he explores how stories impact the economy. Shiller, a respected and lauded professor at Yale, models the spread of narratives in these periods using epidemiology.

Sales Recruiting 293

Sales Recruiting Banking Engineering Customer Support 293

Tom Tunguz

JUNE 14, 2022

During the dotcom crash in 2001, the Global Financial Crisis of 2008, and the SaaS corrections in 2014, 2016, and 2018, Lee was either COO/CFO or CFO at Twilio, SAY Media, and Ofoto. Lee Kirkpatrick is no stranger to downturns.

Management 234

Management Finance Subscription Payment Features 234

Tom Tunguz

APRIL 1, 2019

The era after 2006 and through the 2008 financial crisis was a different time to raise capital. If we look at the ROIC across IPOs across the last 12 years or so, we see that same initial dynamic of incredibly efficient companies in the 2010 and 2014 IPO cohorts. But the efficiency is declining, markedly. There are a few reasons for this.

Startup 271

Startup Software Review SaaS Acquisition 271

Tom Tunguz

MAY 5, 2020

In March, I published analysis of the fundraising market in 2008. It showed that the later rounds, the series B and series C were the most impacted. The early data from March 2020 shows a different pattern. Seed and Series A rounds are first to bear the compression in the market. Later rounds are unblemished.

Marketing 249

Marketing Trends Startup Investment 249

SaaStr

MAY 20, 2020

Started Twilio in January 2008, just as the last downturn happened. He joined StubHub as CTO, but didn’t get nearly as much equity as the other CTO — because he “wasn’t committed enough.” ” A good reminder to us all. For months, they couldn’t raise any money at all.

CTO Hire 342

CTO Hire New CTO CTO Airlines 342

SaaStr

JANUARY 17, 2023

I sold a sales tool in 2008-2009 when the global economy was in total meltdown, and I’ll tell you, we sure didn’t stop selling. We had a great conversation on how much harder it is now with Gong’s incredible CRO here: But is that an excuse to sort of quiet quit? To give up a bit? I say No. In fact, I always say No.

Sales Hiring 229

Sales Hiring Sales Startup Investment 229

Tom Tunguz

AUGUST 18, 2022

Since 2008, the US experienced an unabated 12 year bull market fueled by four waves of money printing which increased US money supply by 30%+. The slides are embedded above & linked here. My brief narrative of the slides follows. The current state of affairs arose as a result of the Global Financial Crisis.

Pricing 243

Pricing Startup Investment Technology 243

SaaStr

MAY 22, 2023

Even the 2008-2009 downturn, while truly brutal, didn’t hit SaaS as hard as the rest of the economy. Not easy, but easier and easier: There was a bump in 2016, a Flash Crash in SaaS, when budgets were slashed, but it didn’t last long enough to really impact renewal cycles. SaaS markets had fully recovered later that year.

SaaS 259

SaaS Churn Sales Software 259

SaaStr

MARCH 10, 2023

Public multiples often were around 4x-5x in 2008, and then the global meltdown came, and public multiples fell to as less than 2x revenue for a while. Then, well, right after we sold EchoSign to Adobe way back in 2011, things picked up, with a slow with material and steady increase in public multiples from 2012 to 2015.

SaaS 248

SaaS Trends Enterprise Revenue 248

SaaStr

MAY 9, 2020

9: Founder/CEO Lessons from 2000 & 2008 Applied to 2020 with Jeff Lawson, Twilio and Byron Deeter, Bessemer Venture Partners. #10: . #7: Twilio: The Inside Story With Jeff Lawson (A SaaStr Classic). #8: 8: 12 Key Levers of SaaS Success with David Skok of Matrix Partners (another SaaStr Classic). #9:

Benchmarks 218

Benchmarks Trends SaaS Revenue 218

SaaStr

FEBRUARY 22, 2024

I started both my companies in downturns, post-2000 and post-2008. What’s your pulse check on the venture markets right now, today? This is an incredible time to build companies. The innovations and technological breakthroughs we’re seeing are amazing, and I am confident we will see some important companies come out during this time period.

Innovation 257

Innovation Wireless Acquisition Technology 257

SaaStr

OCTOBER 19, 2022

It was founded way back in 2008, and had a slowish start and a smallish IPO (as did most of us, back in the day). But founder-CEO Chad Richison has kept at it for 14 years, building it into an incredible engine, growing 31% at $1.2 40% EBDITA. They've got the combo of pretty high growth AND profits pic.twitter.com/OaOEEwN2Yn.

Scale 285

Scale SMB Engineering Cloud 285

SaaStr

APRIL 30, 2020

Founder/CEO Lessons From 2000, 2008 and 2020 with Jeff Lawson and Byron Deeter , CEO of Twilio and GP at Bessemer Venture Partners. Funding in the Time of Coronavirus, Mark Suster , Upfront Ventures. Marking Trade-Offs in Marketing: What to Do, What to Pause with CMO of Tripactions , Meagan Eisenberg.

Enterprise 200

Enterprise Strategy Sales Management 200

SaaStr

OCTOBER 18, 2023

Billion way back in 2008. So Domo is an interesting case study on SaaS entrepreneurship. Founder Josh James had one of the earliest $1B+ exits in SaaS when Adobe bought his first start-up, Omniture, for $1.8 Omniture is still big and it dominated web analytics especially for bigger companies in the earlier days of the internet.

Entrepreneurship 257

Entrepreneurship Enterprise Pricing Churn 257

Tom Tunguz

JULY 19, 2019

The previously fixed financial products that existed in 2008 of a $4-6M Series A and a $10-12M Series B are gone. And this means that the financial product that we call the Series Seed or Series A is meaningless; it’s just the header on the fundraising documents.

Finance 228

Finance Innovation Startup Investment 228

SaaStr

AUGUST 31, 2022

14 years ago, in 2008, at the onset of the last global recession, Google pulled their full-time offers for all their summer interns, which included my co-founder at Cloudflare, Michelle Zatlyn. Recessions have always been hard, but they’re also formative moments to focus and ultimately improve.

Scale 280

Scale Cloud Revenue Scaling 280

Tom Tunguz

MAY 10, 2022

Each Basel Accord was authored in response to a crisis Basel I - the crash of 1989; Basel II - the dotcom crash, and Basel III - the GFC of 2008. The first three Basel Accords set the minimum amount of capital a bank must hold.

Banking 242

Banking Government Construction Startup 242

IT World

JANUARY 20, 2020

Windows Server 2008 has reached end of life, which typically means upgrading to a newer version. If you still have workloads running on Windows Server 2008, you’re not alone. But CIOs have options beyond updating to a more recent iteration of Windows server, including staying put or migrating to the cloud.

Cloud 56

Cloud Technology 56

Tom Tunguz

NOVEMBER 5, 2022

In February 2008, the ARS market seized. In the mid-2000s, many startups invested their excess cash reserves in instruments called Auction Rate Securities. ARS produced a steady stream of interest payments, like savings accounts, with a higher return. Startups seeking to sell their ARSs to fund burn were out of luck : no one would buy them.

Venture Capital 198

Venture Capital Banking Startup Investment 198

SaaStr

APRIL 23, 2020

Just as the economic downturn of 2008 led to the cloud-based SaaS boom that became the new norm for digitally modern businesses, remote work will become ingrained in the core of the new “business as usual” following this pandemic. Let me reassure you: Remote selling is not a temporary trend.

Software Review 233

Software Review Technical Review SaaS Market Research 233

SaaStr

JULY 7, 2021

Sold for $27m (1x revenues?). Being early isn’t everything. 2987 Bullhorn. in 2011 GAAP revenue. HR is hard. 3781 Dairy.com. in 2011 GAAP revenue, but only up from $5.7m 4563 Accolo. $7.6 million in 2011 GAAP revenue. See: HR is hard. Do marketing SaaS start-up instead. I wish everyone would try to win this award.”

SaaS 288

SaaS Technical Review Scaling Software Review 288

Tom Tunguz

NOVEMBER 17, 2022

I remember joining in 2008, a green product manager out of Google who had just landed his dream job. Many of the greatest companies have been founded during difficult market conditions. This era will be no exception. I’m deeply grateful to the Redpoint team.

Venture Capital 195

Venture Capital Artificial Intelligence Machine Learning Innovation 195

SaaStr

JULY 10, 2024

It was founded in 2008 but took a while to get going, hitting $1m in revenue in 2011 selling to Utah schools — and then scaled from there. Instructure is one of the leading learning management systems for education with its Canvas product. Your kids may well use it. You may have in college, too.

Scale 232

Scale SaaS Payments Payment Services Payments 232

SaaStr

NOVEMBER 16, 2021

In 2008, he founded Yammer, an enterprise software company that David grew to 500 employees and $60 million in sales. David Sacks: SaaS Background and Investments. David’s first foray into SaaS was in 1999 when he joined a startup that would become PayPal, starting as the product leader and later as the COO. Microsoft acquired Yammer for $1.2

CTO Hire 261

CTO Hire Sales Hiring Sales Recruiting CTO 261

Tom Tunguz

OCTOBER 7, 2019

In 2008, there was a $5M series A product and a $10M series B product. Startups are able to raise larger early rounds because of the financial environment. One way of thinking about the early-stage fundraising market is as a collection of financial products. Those were the most popular.

Marketing 202

Marketing Benchmarks Trends Startup 202

SaaStr

MARCH 7, 2024

Creandum led the first institutional round in 2008 and it became Europe’s largest tech company to go public ten years later. No big egos but really act with high trust, integrity and long term thinking. #6. What’s an “exit” you’re particularly proud of? Peter is a General Partner and runs Creandum’s London office.

Payments 219

Payments Payment Services Payment Solutions Scale 219

The Angel VC

MAY 31, 2016

With constantly rising table stakes and a fundraising environment that looks quite a bit less favorable than last year’s, I believe the bar is higher than in the last 18-24 months (although raising money is still much easier than it was in “Silicon Valley’s nuclear winter” in 2008 ).

SaaS 193

SaaS Finance Mobile Enterprise 193

Hitenism

JANUARY 6, 2017

It was 2008, and I was having a classic founder moment. Back in 2008, “content marketing” wasn’t a thing. We founded KISSmetrics in 2008.). It was 2008! Twitter in 2008 was pretty limited. I had no idea what I was doing. But at least I was doing! I was founding a SaaS business, KISSmetrics. Content-focused.

Startup 182

Startup Marketing Engagement Content Marketing 182

The Angel VC

NOVEMBER 26, 2014

The first date When I stumbled on Zendesk in 2008 I knew absolutely nothing about enterprise software, B2B or SaaS. Today the “consumerization of the enterprise” has become mainstream, but in 2008 it wasn’t. Yesterday I posted a brief review of Mikkel’s excellent book “Startupland”.

Scale 155

Scale Sales Hiring Venture Capital Software Review 155

Tom Tunguz

APRIL 21, 2020

In particular, narratives stoked three depressions and recessions in the US in 1920, 1929, and 2008. Robert Shiller wrote Narrative Economics , in which he explores how stories impact the economy. Shiller, a respected and lauded professor at Yale, models the spread of narratives in these periods using epidemiology.

Sales Recruiting 197

Sales Recruiting Banking Engineering Customer Support 197

SaaStr

MAY 22, 2019

From 200-2008 she held leadership positions at Allegis Corporation and Intuit before ultimately joining Intercom in 2017. His tenure at Atlassian began in 2008 where he rose from VP of Sales and Marketing to President. .” Karen Peacock is Intercom’s Chief Operating Officer. From there he went on to BEA Systems as VP of Marketing.

Scale 170

Scale Leadership Consulting Metrics 170