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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. Startups operate in newer markets where pricing standards haven’t been set. But throughout this turmoil, startups must adopt a process to craft a good pricing strategy, and re-evaluate prices periodically, at least once per year. AWS, Twilio, Heroku, etc.

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What Are Public SaaS Companies Taken Private At? 7.7x ARR On Average Per SaaSomomics

SaaStr

The startup I invested in that were acquired by PE in the 2020-2021 Boom were acquired for 8x in one case, 12x in another, and 15x in a third. ARR was the Median acquisition price in a “take private deal” Interestingly, it’s not all that different post-Boom and pre-Boom, as you can see above. What did he find?

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Picking Teams in AI

Tom Tunguz

It’s unclear how the Databricks acquisition might change that relationship. For startups building LLM-based applications & infrastructure, this alters the calculus of selecting a cloud. For startups building LLM-based applications & infrastructure, this alters the calculus of selecting a cloud.

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A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). net retention and CAC payback).

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The State of Subscription Apps with RevenueCat’s CEO Jacob Eiting and Growth Advocate David Barnard

SaaStr

Acquisition costs are dramatically lower for consumer and word-of-mouth distribution can go viral. In B2B, you also have fixed costs, but you can diversify monetization based on tokens or seats, or in the case of AWS, however you like. Because of that, you see a 5x increase in conversion from trial to paid on the app store.

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The Top 10 Events in SaaS. According to ChatGPT.

SaaStr

AWS re:Invent : AWS re:Invent is Amazon Web Services’ (AWS) annual conference, focused on cloud computing and SaaS-related services. The event brings together developers, architects, and IT professionals to explore the latest AWS developments.

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The Relationship Between Margins and Acquisition Prices

Tom Tunguz

This is as true for their books business as their infrastructure business, AWS. Over sushi, a friend explained to me that this strategy might also extend to the way the company views acquisitions. Bezos has explicitly stated this strategy and it’s the one that has led to Amazon’s massive success in many different lines of business.