SaaStr

SEPTEMBER 9, 2021

Bill.com has become an SMB powerhouse, with 120,000+ customers and a stunning $25B+ market cap. But the accountant channel is high volume, SMB play. There are 6m SMBs that buy SaaS software. There are 6m customers out there just in SMB. A good acquisition expands the TAM. That’s the magic in SMB SaaS.

SaaS Payments 64

SaaS Payments Payments Payment Services Scale 64

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. As many of these channel partners move to newer distribution models, the brokerage channel model in particular, they represent an efficient and leveraged customer acquisition channel.

Outsourcing Services 113

Outsourcing Services SMB Acquisition Scale 113

SaaStr

DECEMBER 27, 2023

10 Learnings on High Velocity Sales to SMB with Gorgias’ CEO and VPS Gorgias has 13,000 SMB customers. A very tactical guide to scaling SMB sales. #7. GGV Capital: Scaling The Top SMB SaaS Companies A deep dive on SMB metrics, a really good one. #10. Harness.io How do you handle and close so many?

Scale 290

Scale SMB Generative AI AI 290

SaaStr

SEPTEMBER 22, 2022

So when we first started writing about Bill.com at its IPO , it was a sleep SMB accounting product. Yes, that can’t last forever, and half of it was from acquisitions (see the discussion below). But yes, it’s the most incredible SMB growth story in SaaS we’ve ever seen. Yes, 158% growth at $800m in ARR.

SaaS Payments 65

SaaS Payments Payment Services Payment Solutions Payments 65

SaaStr

APRIL 26, 2023

Having said that, many SMB players were hit hard in 2022. Zoom’s SMB customers shrunk for the first time ever, for example. Large mark-down for its $400m acquisition of Tock in 2021. Diversifying into the restaurant space makes sense — it’s one of the largest segments for SMB commerce.

Scale 298

Scale SMB Churn Pricing 298

SaaStr

MARCH 28, 2025

SMB customers. For SMB SaaS, aim for 6 quarters of LTV:CAC, not 4 Ren adjusted the traditional benchmark because SMB customers stay longer than typically measured. of the 33 million SMBs in the US, suggesting significant room for growth. 5 Non-Obvious Learnings from Bill.com’s Journey to $1.4B

SMB 130

SMB Payments Payment Services SaaS Payments 130

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. ” But it’s also a reminder how hard it is to combine services, hardware and software and make money from SMBs. #3. A fairly standard SMB price point.

SaaS Payments 291

SaaS Payments Scale Payment Methods SMB 291

SaaStr

SEPTEMBER 22, 2022

Chestnut began by discussing the ins and outs of the acquisition by Intuit. But when none of them offered a good deal, Mailchimp walked away, convinced they wouldn’t entertain any more talks on acquisition. Up until the acquisition, the company was 100% founder-owned and operated. The Deal With Intuit.

SMB 260

SMB Entertainment Acquisition Branding 260

SaaStr

AUGUST 28, 2024

And with that, it seemed a good time to dig in with one of the great SMB leaders Bill. With a super impressive 111% NRR from SMBs. Divvy Acquisition Very, Very Successful Ramp and Brex create the most noise in the expense management space, but Bill scooped up Divvy for $2.5 Grab the final tickets here!! But Bill hasn’t.

Payments 298

Payments Payment Solutions SMB Acquisition 298

SaaStr

MARCH 23, 2021

The average SMB SaaS company has $295k in revenue per employee, and $450k in the enterprise. Private Equity did 48+ $100m acquisitions in 2020. An argument the top SaaS companies figure out how to grow their TAM … almost forever. An important metric we don’t look at often enough. We’ve seeing it live.

Investment 319

Investment SMB Acquisition Cloud 319

SaaStr

MARCH 28, 2025

Treat your partner acquisition like a sales funneldefine stages, track progress in your CRM, and invest in partner enablement 3 7. More here: 7 Thoughts on Building Your First Partner Program And how Gorgias got to 10,000+ SMB customers with partners here: Focus on High-Impact Partners Not all partners are created equal.

Scale 147

Scale Sales Hiring SMB Enterprise 147

SaaStr

APRIL 24, 2022

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. The Private Equity Math of 1+1=3 in SaaS Acquisitions. Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: 1. But The Best Ones Make $261k. Every Investor is Different. But Here Are 22 Reasons I Generally Say “No” 3.

Sales Hiring 300

Sales Hiring Revenue Scale SMB 300

SaaStr

DECEMBER 2, 2020

” as it now joins Salesforce in a 27B+ mega-acquisition. But Slack’s SMBs seem to have accelerated, too, since then. Slack’s remained 50/50 enterprise / SMB for 3 quarters, and close to it for 5. All 3 are holding relatively consistent enterprise/SMB ratios: 40% of revenue from outside U.S.

SMB 299

SMB Enterprise Cloud Retention 299

SaaStr

SEPTEMBER 17, 2023

The Next Best in About 5 Years. 5 Interesting Learnings from Samsara At Almost $1 Billion in ARR Top Podcasts This Week: 1.

Scale 296

Scale SMB Management Acquisition 296

Sales Hacker

DECEMBER 17, 2024

The post GTM 126: Reverse Engineering the Founder Journey: From Scaling Twitter Ads to $650M, 20 Years Operating, and a Webflow Acquisition | Guy Yalif appeared first on GTMnow. Scott Barker: [26:53] Did you go about shifting that so how were what were some of the strategies you used to shift um how the market was perceiving you.

Scale 102

Scale Engineering Acquisition Scaling 102

Tom Tunguz

FEBRUARY 26, 2025

Just a quick reminder: Payback Period = Cost of Customer Acquisition/Gross Margin The gross margin is the revenue per customer minus the costs to provide the service. A decrease in price reduces gross margin and will consequently increase payback period.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

SEPTEMBER 1, 2023

119% NRR from SMBs Profitable, and only burned $15m net to date 130,000 total customers There’s not much to not love here! But the metrics, especially for an SMB-focused SaaS business, are breathtaking. 14 Month CAC CAC (Customer Acquisition Cost) is one of those metrics there are about 10,000 ways to calculate.

Scale 290

Scale SMB Sales Hiring Interviewing 290

SaaStr

DECEMBER 17, 2020

#1: “Mastering the Art and Science of Product-Led Growth with Gainsight” Over 20,000 tuned into this session on what Gainsight has learned here, on the heels of its $1B+ acquisition by Vista. #2: 3: “Soc 2 Demystified: The Key to Closing Enterprise Deals with Vanta.”

Scale 258

Scale Scaling SMB Acquisition 258

SaaStr

AUGUST 14, 2019

Now, the numbers are flattered a bit, really quite a bit, by Twilio’s acquisition of Sendgrid for $3 billion. But as you can see from the previous post on The $1 Billion ARR Club, even without the acquisition, Twilio’s core growth hasn’t slowed. Even SMB SaaS. Still, Twilio remains solidly SMB by make-up.

Telecommunications 46

Telecommunications SMB Acquisition Retention 46

SaaStr

JANUARY 4, 2023

They had a bit of dip in growth as they worked to integrate the mega-acquisition of Auth0 — but then went right back to growth. Okta is seeing higher SMB churn and more ROI scrutiny, but is also benefitting from some customers wanting to centralize on fewer core vendors. Even now, even in times of tighter scrutiny of budgets.

Scale 318

Scale Headcount Sales Hiring SMB 318

SaaStr

SEPTEMBER 15, 2023

They’re spending a lot on online marketing and acquisitions and servicing all those leads from a low-cost place like India. Big Bet #4: Go After Bigger Fish — Overlay Field Motion Over Inbound People often assume inbound is all SMB, but one of the things Freshworks realized early on is that you can close larger deals with inbound.

Sales Hiring 290

Sales Hiring Scale SMB SaaS 290

SaaStr

FEBRUARY 24, 2022

Where there’s a viral boost to acquisition. That’s Aaron Levie’s argument here: * Hire a great VP of Marketing with a strong SMB and growth background. PLG, or Product-Led Growth, can mean, so many things. Everyone would prefer a product where 50% or more of the leads come from the product itself. And by all means go build that.

Sales Hiring 279

Sales Hiring Scale SMB Acquisition 279

SaaStr

NOVEMBER 16, 2022

It still has very strong NRR for a still muchly SMB and mid-market product at 135%, with no decline since the same 135% at $400m in ARR. #2. SaaS leaders at scale often find their cost per acquisition goes up at scale, at they saturate the market, but Monday has gotten better and better here: #8. This slide below I found interesting.

Headcount 322

Headcount SMB Engineering Scaling 322

SaaStr

OCTOBER 3, 2023

Finding product market fit Moving from SMB to Enterprise or vice versa Achieving Enterprise repeatability Strategic expansion Borland has experienced all four stages at three different companies and knows what teams and functions look like for each stage of growth. Is it acquisition, expansion, or retention?

Enterprise 298

Enterprise B2B Scale SMB 298

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead.

Scale 342

Scale Outsourced Development SMB Cloud 342

Tom Tunguz

APRIL 16, 2013

At first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. Successful SMB SaaS companies have reinvented their businesses eschewing the expensive enterprise sales model in favor of end-user centric marketing, support and product development.

SMB 100

SMB Scale Startup SaaS 100

SaaStr

APRIL 6, 2019

But the most relevant lesson for most of us is how much more capital efficiency SaaS business are with even partial viral customer acquisition. It can be tempting to let the SMB side of the business go as you scale. SaaS business often have a low viral coefficient, if they have one at all. And a material boost to growth.

SMB 277

SMB Acquisition Scaling Engineering 277

Tom Tunguz

SEPTEMBER 13, 2016

When an SMB SaaS startup is young with quickly growing revenues, more of the same works. For some SMB SaaS companies, generating this kind of lead volume even at scale isn’t a challenge. There is no universal answer to which direction to pursue: remain in the SMB segment and cross-sell or move up-market, or both.

SMB 100

SMB Scale Startup Marketing 100

Tom Tunguz

OCTOBER 9, 2016

What are the attributes of the ideal SMB SaaS company, an entrepreneur asked me recently. I believe that the next wave of SaaS companies will be centered around workflows, Event Driven SaaS , and this extends to SMB SaaS. Acquisition. This is a combination of a product attribute and an acquisition attribute.

SMB 100

SMB SaaS Acquisition Education 100

SaaStr

JANUARY 7, 2021

Zendesk’s Sharon Prosser, VP Worldwide SMB Sales & XDR, and Astha Malik, VP GTM Strategy, Planning, and Enablement share some guiding principles about how their company has grown and enriched many markets. The X-Factors.

Scale 284

Scale Scaling Sales Hiring SMB 284

SaaStr

DECEMBER 14, 2020

Churn is a good term for your SMB and freemium customers. They will come and go, and their lifetime values often will be relatively small & short, so your customer acquisition strategies will have to be extremely precise. And sometimes they’ll churn even just for a modestly better deal. Like Verizon.

Churn 362

Churn Sales Hiring Systems Review B2C 362

Tom Tunguz

AUGUST 7, 2017

The strategic question might be catalyzed by increasing cost of customer acquisition in the core SMB segment. In addition, enterprise sales often requires more staff than SMB sales. Field marketing and sales engineering are two essential roles in enterprise sales that have no counterpart in SMB.

SMB 185

SMB Sales Funnel Company Culture Enterprise 185

SaaStr

AUGUST 6, 2022

And some of its most successful product expansion has come from acquisitions. HubSpot has stayed mostly SMB focused, but has over time evolved from a simple tool to the marketing and sales hub for many of its customers marketing efforts. Evernote started off as a simple note-taking and clipping app … and sort of stayed there.

Scale 307

Scale SMB Mobile Acquisition 307

SaaStr

APRIL 4, 2023

You’ll probably have a smaller lifetime customer value and customer budget for acquisition. Find The Balance Between CAC And LTV The achievable lifetime value defines your customer acquisition cost target. Every company is different and will have varying solutions, customer acquisition costs, and lifetime value.

Scale 246

Scale Scaling Strategy Outbound Sales Team 246

SaaStr

APRIL 4, 2022

Performance Marketing: Performance marketing focuses on driving volume and velocity through owned and paid ‘always on’ programs for net new leads acquisition for self serve, SMB, and enterprise accounts horizontally. . Scale your alliance and solution partner marketing portfolio to amplify net new acquisition. .

Scale 279

Scale Revenue Scaling Marketing 279

SaaStr

JULY 8, 2022

Half of Gorgias’ almost 10,000 SMB customers come from partners. The Things Nobody Tells You About An $8B Acquisition with Ryan Smith from Qualtrics. #21. A classic SaaStr Annual session here that has resonated 58,400 times. #4. How Leveraging Partnerships Can 2x Your Growth with Gorgias CEO Romain Lapeyre.

VP of Engineering 279

VP of Engineering Scale Outbound Sales Team SMB 279

SaaStr

DECEMBER 7, 2022

Secrets to SMB at Scale with Hubspot CEO Yamini Rangan and Jason Lemkin, Founder & CEO at SaaStr. Managing a Thin Balance Sheet: 4 lessons Learned From a 2 Billion Acquisition (and How to Play Offense) with Laika Founder Eva Pittas and CFO, Dicken Chaplin. 9:00-10:00 AM PT. 10:00-11:00 AM PT.

Scale 48

Scale VP of Engineering Scaling SMB 48