Tom Tunguz

JANUARY 12, 2022

Is historical data compelling enough to hypothesize that investors' rotation out of high-growth software should be mirrored in crypto? BTC and ETC moved more or less in synchrony from 2016 to 2018. But the data makes plain that investors don’t view these two asset classes interchangeably.

Software 334

Software Marketing Trends Startup 334

The Angel VC

JANUARY 10, 2017

In less earth shattering news, the fact that it's 2017 also means that my "SaaS Funding in 2016" napkin needs an update. As a reminder, in the original post I tried to give a "back of a napkin" answer to this question: What does it take to raise capital, in SaaS, in 2016?

SaaS 262

SaaS Marketplace as a Service Machine Learning Artificial Intelligence 262

Tom Tunguz

MARCH 28, 2021

Robots read pdfs that customers provide and input that data into other computer systems. Customer support teams might use RPA robots to read the contents of an email, find an order number, look up the order, and present the support agent with some key data. Some examples include streamlining customer onboarding.

Payment Services 359

Payment Services Metrics Payment Solutions Payments 359

Tom Tunguz

MARCH 31, 2016

2016 is off to a slower start than 2015. billion in Q1 2016, a decline of about 17%. Nevertheless, Q1 2016 activity exceeded Q1 2014. Rather than analyzing the trends by named rounds (Seed, Series A, Series B) whose definitions of fluctuated over the last six years, this analysis cuts the data using round sizes.

Trends 100

Trends Investment Startup Venture Capital 100

Tom Tunguz

DECEMBER 20, 2016

2016 was a year of change for SaaS, and most of the story was the public market. The Hottest Startup Sectors In 2016 - published on January 3rd, this post reviewed the patterns of investment in startups, and in particular, the sectors where investors were increasing their investment the fastest. The end of the year is fast approaching.

Software Review 100

Software Review Systems Review Startup Pricing 100

SaaStr

JANUARY 26, 2023

While the data ends here, here’s what I can tell you I am seeing in growth rounds today: Very few growth rounds are happening at all When the do happen, they are for capital efficient startups growing > 50% at scale And … the peak valuation is about 15x. For the best ones.

Venture Capital 67

Venture Capital AWS SaaS Startup 67

Tom Tunguz

NOVEMBER 8, 2015

Looking at the data in another way, at the beginning of 2014, the enterprise value of all publicly traded SaaS companies totaled $151B. What does this mean for 2016? A path to short term profitability will be much more important in 2016 than before. In 2015, the IPO Market stalled.

Startup 100

Startup Software Data Acquisition 100

SaaStr

JANUARY 27, 2024

Automattic was started in 2005 to democratize publishing, and WooCommerce was purchased in 2016 to democratize e-commerce. These products are part of a shared philosophy around user control of privacy, data, and open-source. When WordPress purchased WooCommerce in 2016, they believed it would become their biggest business.

Underperforming Technical Team 333

Underperforming Technical Team Social Media Government Payment Features 333

SaaStr

FEBRUARY 4, 2021

86% of their funds saw an uptick in valuation in Q3 , and while they don’t have all the Q4 data yet, it could be even higher including Q4. California-based VCs in their portfolio invested 43% of their new investments outside California , up from 29% in 2016. But then things came roaring forward in the summer of ’20.

Cloud 285

Cloud Investment B2B SaaS 285

SaaStr

MARCH 17, 2022

#1 source of traffic to [link] : 2022: SEO 2021: SEO 2020: SEO 2019: SEO 2018: SEO 2017: SEO 2016: SEO 2015: SEO 2014: SEO 2013: SEO 2012: SEO. Every single year I look at SaaStr.com data, Organic Search is #1 : Interestingly, even in 2012. Even Year 1 pic.twitter.com/5FtzBG2v1O. — Jason BeKind Lemkin #????????????

Engagement 279

Engagement Data Sales Marketing 279

SaaStr

JANUARY 12, 2023

Founded in 2016, Lark effectively combines messaging, schedule management and online collaborative documents in a single platform. Our mission at Vanta is to be a layer of trust on top of cloud services, to secure the internet, increase trust in software companies, and keep consumer data safe. appeared first on SaaStr.

Payment Features 55

Payment Features Payment Services SaaS Payments Payments 55

Tom Tunguz

APRIL 21, 2024

Software companies top the charts at 3% over the last 20 years, according to data from New Constructs , a financial research firm. For a period from December 9, 2009, to approximately March of 2016, technology companies produced nearly 5% free cash flow yields on average. That’s my mental model for it, anyway.

Software 296

Software Business Construction Government 296

Tom Tunguz

JANUARY 4, 2019

But the average MRR has increased substantially from the last time I analyzed the data. The usual caveats to this data analysis apply. These figures are larger than I expected. To be fair, 22% of companies raised at $0 in ARR. note I’m switching from median to average here). That’s quite a growth rate.

Benchmarks 261

Benchmarks Startup SaaS Data Analysis 261

Tom Tunguz

SEPTEMBER 3, 2017

But it’s key to understand the theory and the benchmark data that governs the creation of sales commission plans to create a good one for your business. Fortunately, the 2016 Pacific Crest Survey of private companies indicates that the median is 9% for inside sales teams and 10% for field teams. What’s the right ballpark?

Sales Recruiting 160

Sales Recruiting Sales Hiring Data Sales 160

Tom Tunguz

JUNE 11, 2017

When I analyzed the SaaS fundraising market in 2016 , three trends emerged. Across all rounds, both lines are up into the right, despite some volatility in 2016. In 2016, venture capitalists reduced their investment in staff companies by 1 ⁄ 3 , falling to $2.8 Meanwhile, round sizes swelled. billion from $4.2

Venture Capital 203

Venture Capital SaaS Trends Startup 203

Tom Tunguz

MARCH 6, 2016

The startup fundraising market in 2016 has been difficult to characterize. Two months in, we can analyze January and February data. VCs invested about $2B in January and February 2016. We can segment the data by round size: rounds less than $2.5M, $15M, $50M, and greater 50+. But the data raises more questions.

Marketing 100

Marketing Finance Investment Startup 100

SaaStr

JANUARY 20, 2020

This will be the start of the end of the sweetheart run for SaaS from 2015–2016 through today. “No Not deploying your own data center was a big start of not having to do stuff yourself. “No No code” enables much better software.

SaaS 271

SaaS Engineering Software Revenue 271

SaaStr

JUNE 5, 2020

Few folks have more data than Nathan Latka and he offers up some insights on how to properly leverage up in SaaS. In 2016, Digital Ocean opened a $130m credit facility with Keybanc. . Debt for SaaS companies done right is a gift. Done wrong, it can weigh you down like an anchor. — ed. Good — and Bad — Types of Debt.

Venture Capital 299

Venture Capital Technical Review SaaS Scale 299

Tom Tunguz

APRIL 25, 2016

As the overall venture market environment evolves in 2016, so too does the SaaS and Software segment. In Q1 2016, SaaS rounds increased a modest 10%. But early 2016 pace still exceeds the best quarters of 2010-2012. Let’s break down the data by series. In dollar terms, Q1 notched the greatest amount invested yet.

Marketing 100

Marketing SaaS Investment Startup 100

SaaStr

OCTOBER 15, 2022

The median multiple fell below 5x at market close for the first time since 2016 (when it briefly fell below 5x) pic.twitter.com/QZ605lMswz. I really like the latest CB Insights data because we can use it to simplify a lot of complexity in the markets: First, yes venture has truly plummeted. That’s massive change.

Startup 279

Startup Cloud Growth Marketing Enterprise 279

SaaStr

OCTOBER 21, 2022

Marketing was not always a data-rich environment, but now, a modern growth team can tie marketing together with product engineering and data analytics. “If Even after their first five years, when Braze pursued Series-C fundraising in 2016, every single round only netted one term sheet. You must deliver value in the moment.”.

Mobile 279

Mobile Technology Investment Innovation 279

Tom Tunguz

JULY 22, 2017

The chart above shows the compound annual growth rate of venture investment rounds A through D in ten fastest growing venture markets plus the US from 2010-2016. Turning to the median size of an investment, the data reveals China tops the list at $30M in round size. invested in 2016, with a growth rate of 19%.

Venture Capital 189

Venture Capital Development Marketing Investment 189

Tom Tunguz

JULY 15, 2017

If we plot San Francisco startup fundraising activity through the first six months of the year, rounds A through D, beginning in 2010, we see the surge during the 2014-2015 heyday and then a reversion to an elevated mean in 2016 and 2017. The startups raising hundreds of millions or billions might bias the data, I thought.

Investment 203

Investment Startup Venture Capital Trends 203

SaaStr

OCTOBER 21, 2022

Marketing was not always a data-rich environment, but now, a modern growth team can tie marketing together with product engineering and data analytics. “If Even after their first five years, when Braze pursued Series-C fundraising in 2016, every single round only netted one term sheet. You must deliver value in the moment.”.

Mobile 263

Mobile Technology Investment Innovation 263

SaaStr

MAY 19, 2023

You can see here multiples are touching the lows of early 2016 and are even lower than 2015 and those early days of SaaS. Share more data, not less. Seed is slowing down last, but it is slowing down. Especially as Seed VCs are getting more and more nervous that no one is going to write the next check anymore. It just has to.

New CTO 307

New CTO CTO Banking Cloud 307

Tom Tunguz

MARCH 19, 2018

The data suggests that these acquisitions will be completed at some of the highest multiples of the last decade, especially for the fastest growing companies. SAP/SuccessFactors. Salesforce/Demandware. Oracle/Eloqua. SAP/Callidus. Microsoft/LinkedIn. Oracle/Responsys. And we’re sure to see more.

Acquisition 189

Acquisition Marketing Enterprise Revenue 189

SaaStock

MARCH 8, 2019

After 11 years in finances, in 2016 she became the CFO of Brinc.io, boldly entering into the tech world. It is full-service agile software development, UI/UX and data science consulting firm with offices in Hong Kong, Singapore, and San Francisco. In 2016, she moved to Hong Kong to head Innovation at HSBC. Janet Yuen.

VP of Engineering 264

VP of Engineering CTO Coach Venture Capital SaaS 264

Tom Tunguz

AUGUST 4, 2024

Toil is repetitive work : reviewing alerts, triaging leads, data entry. For example, accounting graduates have fallen approximately 18% since 2016. What attributes of a market make it attractive to pursue? Those with three attributes : Toil, labor market shortages, and margin pressure. Necessary but not strategic.

AI 203

AI Software Review Marketing Systems Review 203

SaaStr

DECEMBER 27, 2023

Between 2016 and 2023, you see the ACV (average contract value) going up and up. A Misconception: You Need A Lot of Data to Solve Your Problems People want a lot of data, but they don’t know how to use it. The reality is data will never be perfect. The reality is data will never be perfect.

Sales Hiring 283

Sales Hiring Scale SMB Outsourced Development 283

Buffer Resources

AUGUST 2, 2024

They’re frustrated by being at the mercy of changeable algorithms or having their data sold to the highest bidder. It promises users freedom, privacy, and control of their own data. The benefits of decentralization Data ownership and privacy: Users retain control over their data, deciding what to share and with whom.

Social Media 111

Social Media Underperforming Technical Team Government Blockchain 111

Tom Tunguz

JUNE 11, 2018

Full data below. Github data is estimated from public news reports here and here. All other data originates from public filings or disclosures. As I wrote earlier this week, forward software multiples have reached eight year highs at 8.5x EV/NTM revenues. It’s a great time to sell a fast growing billion dollar company.

Software 173

Software Marketing Scale Acquisition 173

SaaStr

JULY 7, 2021

5000 “ It was a fun one, analyzing the only public source of data on just how much ARR a lot of SaaS companies had. Where it Went: IPO’d in 2013, hit $250m ARR by 2016, a cquired for $1.8b The second SaaStr post ever, way back in late 2012, was “ Everybody Lies: SaaS Revenues in the Inc. generation. 78 Marketo.

SaaS 291

SaaS Technical Review Software Review Scaling 291

SaaStock

FEBRUARY 14, 2019

Its focus is on businesses in Big Data, mobile, and SaaS. In 2016, André joined Superlógica Tecnologias, a management system designed to service small businesses with a recurring revenue model. in 2016, he co-founded Vendas B2B Summit, the largest Brazilian B2B sales online event. He will be the chairperson at SaaStock LatAm.

Technical Review 207

Technical Review Scale Entrepreneurship Sales Hiring 207

Neil Patel

MAY 10, 2021

Blockchain technology is a new way to secure your data. You can use blocks to store information like: financial transactions contracts medical data supply information confidential customer data. How Does Blockchain Work for Data Security? Blockchain is a possible solution to giving customers peace of mind over their data.

Blockchain 122

Blockchain Payment Methods Data Marketing 122

SaaStr

JANUARY 11, 2023

Since 2016, he prefers to make about three or four investments per year, usually within the $1 – $4 million range. . He is the CRO and CO-Founder of Atrium, a data-driven sales management platform that helps sales managers, sales leaders, and sales ops pros use data to improve rep and team performance.

Venture Capital 242

Venture Capital Investment Sales Hiring Entrepreneurship 242

Tom Tunguz

MARCH 24, 2024

In 2016, the question was easy to answer : sell Ironman not Robocop. Copilots have proven to increase productivity by 50-75% according to data points from Microsoft & ServiceNow. Should software assist humans or act on their behalf? To be or not to be an agent, acting on behalf of workers?

Software Engineering 186

Software Engineering AI Benchmarks Startup 186

Tom Tunguz

AUGUST 7, 2016

But it’s not a compelling if it’s a single data point, because the market reached this level in Q2 2013 and Q1 2012. Cooley’s data indicates the supply of venture capital dollars exceeds founder demand and VCs are competing by continuing to offer very founder friendly terms, even in down rounds.

Venture Capital 100

Venture Capital Startup Finance Consulting 100