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Pitchbook & IVP: Top Tier SaaS Companies Usually Raise at 15x ARR. It Was 114x in 2021.

SaaStr

So the minor point is maybe we’re just back to 2016-2017 in SaaS venture capital for Series A and later rounds. Even If It’s Awful for Series A-E Rounds. For the best ones. But the bigger point is especially for new founders and execs to just look at the chart above. But not that much better on the multiple side.

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SaaS Multiples Are At a 3+ Year Low. Where It Goes From Here.

SaaStr

Amazon AWS, Microsoft Azure and even Google Cloud are on fire, adding insane amounts of revenue this year. The point is that SaaS multiples are still higher than where they were from 2010-2017. Draw a straight line and assume multiples gradually expand at the same rate as they were growing from 2017-2019.

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5 Interesting Learnings from Fastly. As It Gets Ready to IPO.

SaaStr

We all know this from AWS and Twilio on down, but Fastly is a visceral reminder. Ringcentral was very slow to go global, while Fastly had 40% of its revenue from international even in 2017. It’s also a great one to learn from, at $200m+ ARR ($45.5m 5+ learnings for founders: Developers control a lot of spend today.

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A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up).

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10 Observations from Dropbox's S1

The Angel VC

4 – More than half a million $ per head As of December 31, 2017, Dropbox had 1,858 employees. Revenue for 2017 was $1.107B. 6 – A unicorn’s worth of office rent “In October 2017, we entered into a new lease agreement to rent office space in San Francisco, California, to serve as our new corporate headquarters. Mind blown.

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Slack moves video and voice calls to AWS

IT World

AWS is already Slack’s “preferred” cloud infrastructure provider, and the two companies have a common rival in Microsoft, competing with its Azure and Teams products, respectively. Chime was launched by AWS in 2017 , but hasn’t grabbed attention in the same way as communication tools such as Zoom and Microsoft Teams in subsequent years.

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Move Over Subscriptions. The Future Is Elastic And Built Around Relationships.

Chargify

It’s likely that you have seen one of Martech’s Marketing Technology Landscape diagrams illustrating the rapid growth from ~150 players in 2011 to over 5,000 in 2017: Increased competition and saturated markets have eroded differentiation and perceived-value between products. with numerous upsell and cross-sell opportunities.