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SaaS Funding Napkin, the 2017 edition

The Angel VC

Today is 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. Today I'd like to take a stab at the (early) 2017 answer to that question. So, what does it take to raise capital, in SaaS, in early 2017? It still feels surreal to me.

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Series A SaaS Startup Benchmarks for 2018

Tom Tunguz

I didn’t calculate this figure in 2017. (note I’m switching from median to average here). In 4 years, we’ve seen a 4x increase in the median MRR of a Series A SaaS company. That’s quite a growth rate. There are two reasons for this increase.

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Benchmarking DataDog's S-1: How 7 Key Metrics Stack up

Tom Tunguz

in 2017, the day before their IPO. To put the company’s stellar trajectory in context, I’ve plotted its metrics relative to two other incredible monitoring companies: NewRelic (NEWR) and AppDynamics (APPD). NewRelic is public and is worth $3.3B as of this morning. Cisco acquired AppDynamics for $3.7B

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A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. Not surprisingly, these benchmarks match up relatively well with the numbers public companies reported.

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The Important SaaS Accounting Changes Coming in 2017

Tom Tunguz

Starting in 2017, revenue recognition for SaaS companies will change, and SaaS startups will have more flexibility in the way they record revenue than in the past. Public companies must transition to these new regulations starting in 2017. Private companies have the option to migrate to these new standards in 2017.

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If smaller VC funds outperform large VC funds, is Softbank’s Vision Fund destined to fail?

SaaStr

Yes, the crazy outperformers in venture are smaller funds, from Lowercase Capital to Benchmark, etc. Sequoia put ~$100m into Zoom’s last round in 2017 at $1b valuation. The data in everything in venture is … mixed. The IRR can be very attractive in late-stage investing, done well. That $100m investment is up 15x in just 2 years!

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The State of SaaS: Stalled Growth is Starting to Rebound with Altimeter Capital Partner Jamin Ball

SaaStr

By comparison, the median growth rate for these businesses from 2015-2017 was 27%. At the same time, the 10-year benchmark rate has gone from 2.2% So o n the one hand, we can look at this data and say the average median multiple is 22% lower than the long-term average, but the median growth rate is down nearly 50%.

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