SaaStr

AUGUST 11, 2024

As a reminder, the SaaStr Fund is investing $170,000,000 in seed and late-seed investments. Algolia and Legacy Investment Talkdesk in BVP Cloud 100! RevenueCat is the market leader for managing mobile subscription apps, with over 30% of U.S.-based A big week at SaaStr Fund! Some great news this week: #1. We led the U.S.

Cloud 293

Cloud AI Generative AI CTO 293

Subscription Flow

OCTOBER 2, 2024

For subscription-based businesses, revenue leakage means the waste of potential capital which has been rightfully earned. The causes behind this gap range from errors in subscription handling to recurring billing inefficiencies. Boasting revenue is the central goal for subscription-based businesses.

Payments 105

Payments Payment Features Payment Services Payment Solutions 105

FastSpring

MAY 20, 2024

Moving some, all, or simply more of your software offerings from a one-time perpetual license model to a software as a service (SaaS) subscription model can be daunting, but it’s so powerful for building dependable, recurring revenue. Letting FastSpring handle the subscription infrastructure.

Payments 156

Payments SaaS Payments Merchant Services Payment Solutions 156

SaaStr

JULY 20, 2024

Invest in People You want to keep the bar high on talent, especially in hypergrowth, and not just in the early stages. Invest Heavily in Onboarding Your typical employee takes about three to six months to get ramped. Invest Early in Your Marketing When scaling the GTM engine, you want to invest early in marketing.

Sales Recruiting 292

Sales Recruiting Sales Hiring Scale Engineering 292

USIO

FEBRUARY 7, 2025

Reducing Costs Through Automation Manual payment processing can be both time-consuming and error-prone, leading to increased operational costs. APIs address this by automating tasks like invoicing, payment tracking, and reconciliation. This translates to fewer disputes, faster payments, and better use of internal resources.

Payment Solutions 130

Payment Solutions Payment Services Payments Payment Methods 130

SaaStr

MAY 15, 2024

So with public SaaS companies continuing to grow, but revenue multiples often at relative lows, it can make sense in some cases to “go private”, invest in more growth for a few years, and try to IPO again down the road. Qualtrics did it, nCino just did it, and the latest is Squarespace. 5 Interesting Learnings: #1.

Scaling 292

Scaling Payment Features Subscription Pricing 292

Clouded Judgement

JULY 12, 2024

Because your competitors are investing in AI efforts, you also have to invest in AI efforts. At the end of the day these investments might not immediately result in better business outcomes (ie more revenue), but they certainly lead to better end user experiences. Altimeter is an investment adviser registered with the U.S.

Cloud 288

Cloud AI Investment User Experience 288

Clouded Judgement

JUNE 14, 2024

Most of my venture career has been spent investing in data businesses. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 343

Cloud Pricing AI Software 343

Clouded Judgement

MARCH 29, 2024

Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA. This is for information purposes and should not be construed as an investment recommendation.

Cloud 284

Cloud Forecasting Payment Features Subscription 284

SaaStock

JANUARY 25, 2019

Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. from Astella Investimentos, Spectra Investments and others. Vindi is a PCI-certified online payment platform for recurring billing. Founded : 2011.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

Clouded Judgement

JUNE 19, 2024

To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4. So for public companies the formula to calculate gross margin adjusted payback is: [(Previous Q S&M) / ((Current Q Subscription Rev x 4)  -(Previous Q Subscription Rev x 4)) x Gross Margin] x 12 Here’s the payback data from Q3.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

SaaStr

SEPTEMBER 19, 2023

The right-hand graph shows that deal count and overall investments have fallen. This is where traditional SaaS methods like subscription pricing only, driving growth through headcount only, or a pure sales GTM strategy only live. PLG is about investing in product and data instead of sales and marketing.

Business Model 293

Business Model SaaS Payments Payments Headcount 293

Tom Tunguz

MARCH 24, 2020

Better for the leagues and athletes to sell more products and subscriptions, better for the fans who engage more, over longer seasons, in different formats. And could online learning create a better learning experience at a fraction of the price, changing the return on investment calculations for going to college?

Software Review 361

Software Review Technical Review Entertainment Outsourced Development 361

Clouded Judgement

MARCH 1, 2024

” I heard that a lot in 2021, and unfortunately not many call options hit… It’s hard to invest at 100x ARR and exit at 10x and make a return VCs aim for. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Everything getting pre-empted.

Cloud 317

Cloud AI Investment Metrics 317

The Daily Egg

JANUARY 30, 2019

Whether you’re looking for subscriptions, leads, sales, or a higher return on your marketing investments, conversion rate optimization is the path to follow. When you want the most from your web marketing efforts, the benefits of conversion rate optimization (CRO) cannot be overstated. The thing about CRO is that it works.

Payment Features 260

Payment Features Subscription Investment Sales 260

USIO

JANUARY 15, 2024

Subscription Models: Usio will provide general insights into why subscription-based payment processing is often considered advantageous for Software as a Service (SaaS) businesses. Predictable Revenue Streams: Subscription models provide a consistent and predictable revenue stream for SaaS companies.

SaaS Payments 130

SaaS Payments Payment Services Payments Payment Solutions 130

USIO

FEBRUARY 19, 2025

Instead of spending a year (or more) navigating regulatory red tape, Usio gets you up and running fastand lets you actually make money from payments instead of just processing them. Payrix Flexible, but Bring a Developer (or Five) Best for: SaaS companies willing to invest developer time into embedded payments.

PayFac as a Service 179

PayFac as a Service Merchant Services Payfac Payments 179

SaaStr

OCTOBER 13, 2022

ChartMogul is an analytics platform to help you run your subscription business. Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use.

GCP(Google Cloud Platform) 254

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 254

SaaStr

JUNE 5, 2020

It’s hard to imagine a world where analysis didn’t understand recurring, subscription based revenue for technology products. The company is the poster child for subscription-based software, a model that’s gaining popularity among corporate buyers. This CNET article captures the uncertainty well: .

Venture Capital 293

Venture Capital Technical Review Scale SaaS 293

SaaStr

JANUARY 15, 2021

R&D) … and that ballooned to as much as 44% under SAP (re-investing in product) … and now has come down to 31% as the company marches again to being a stand-alone company. There are a lot of mini-lessons here on the ability to invest when you don’t have to worry about being public, etc.,

Enterprise 306

Enterprise Scaling Investment Revenue 306

SaaStr

DECEMBER 14, 2020

Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., If nothing else, for your biggest customers, over-invest in customer success. semi-commodity storage, semi-commodity hosting, etc. the dynamics are similar. Hire more experienced talent.

Churn 362

Churn Sales Hiring Systems Review B2C 362

Tom Tunguz

APRIL 1, 2024

y/y, estimated sales efficiency is 0.11, & contribution margins are negative : Rubrik sells $1 of subscription software for $0.88. It’s a strategic imperative to metamorphose from an on-premises perpetual-license company to a subscription-software company as fast as possible. But overall revenue is growing 4.5%

Data 220

Data Payment Features Subscription Cloud 220

Clouded Judgement

DECEMBER 1, 2023

Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA. This is for information purposes and should not be construed as an investment recommendation.

AWS 299

AWS Cloud AI Search Cost optimization & reporting 299

SaaStr

APRIL 17, 2024

But they are ar $780,000,000+ in ARR, with an 86 NPS and strong revenue growth at 29% overall and 49% in subscriptions (yes, it’s confusing). But it’s decided to keep investing heavily in growth. They’re still transitioning from onprem / appliciance model to cloud, which makes some of the metrics a touch confusing.

Scale 291

Scale Pricing Scaling Cloud 291

SaaStr

DECEMBER 21, 2022

And it proves just how long a life so many B2B products have — especially if you keep investing in them. #5. Adobe is almost 100% subscription revenue based now. I actually hadn’t looked at this in a while, but Adobe is essentially 100% recurring revenue, subscription-based revenue.

Scale 286

Scale Cloud Payment Features Subscription 286

SaaStr

SEPTEMBER 15, 2020

As a SaaS company, you can meet the economic nexus threshold by selling a certain number of software subscriptions in a state to only a handful of customers. Considering that SaaS companies typically charge a monthly subscription amount, one customer can create 12 transactions.

Payment Services 332

Payment Services compliance SaaS Payments Scale 332

SaaStr

NOVEMBER 24, 2022

After experiencing the pain of managing software subscriptions first-hand, Cristina, Cledara ‘s Founder and CEO, decided to build a platform that was 100% focused on the customer and solved that very issue. Cledara is the result of that. FIS is at the heart of the commerce and financial transactions that power the world’s economy.

Merchant Services 255

Merchant Services Cybersecurity compliance Finance 255

Clouded Judgement

AUGUST 30, 2024

Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA. This is for information purposes and should not be construed as an investment recommendation.

Cloud 274

Cloud Venture Capital AI Startup 274

SaaStr

JUNE 11, 2024

over adoptions of about ten years, so there’s real value in investing time and money into applications that help you achieve this. To get a real return on investment, you shouldn’t overlook traditional AI and the many ways you can use it today. You may receive invoices in back office systems.

AI 169

AI Artificial Intelligence Data Generative AI 169

Subscription Flow

APRIL 23, 2024

A robust recurring billing software can make all the difference for your subscription business but win 2024 we are taking no gambles. Invest in the right billing and subscription-management software to automate your workflows after carefully assessing three of the best options in the market.

Payment Solutions 104

Payment Solutions Payments Payment Services Payment Features 104

Subscription Flow

MAY 2, 2024

As a result, shifting to crypto will be an investment with limited (if any) benefits for them.) Once the integration has been activated and goes live, the system will begin its handling of all subscriptions and even one-off payments that your end consumers make before drafting invoices for them.

Payment Solutions 105

Payment Solutions SaaS Payments Merchant Services Payment Services 105

Clouded Judgement

SEPTEMBER 13, 2024

Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA. This is for information purposes and should not be construed as an investment recommendation.

Cloud 252

Cloud Forecasting Metrics Payment Features 252

SaaStr

AUGUST 21, 2024

Shopify and Bill both also get the majority of their revenue from financial fees and transaction fees, not software subscriptions. Customer Referrals Now Responsible for 14% of New Locations Invest in true customer happiness, folks. #10. Only 18% of Revenue From SaaS. 80% from Transaction Fees. Perhaps the most impressive of all.

Scale 294

Scale Payment Methods SaaS Payments Payment Solutions 294

Clouded Judgement

AUGUST 16, 2024

GenAI will empower companies to do more with software than ever before, and it will also increase the value of the software itself, unlocking new areas for innovation and investment. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Outsourcing Services 274

Outsourcing Services Cloud Software Outsourced Development 274

SaaStr

OCTOBER 5, 2022

Moving away from a subscription to a consumption-led model can bring several benefits to your business. The consumption-led model enables you to recognize customer revenue based on actual usage versus the subscription contract and associated promise of usage. . “It Invest in a repeatable playbook. Share the logic behind changes.

VP of Engineering 245

VP of Engineering Scale Scaling Sales Hiring 245

SaaStr

FEBRUARY 14, 2023

In today’s market, you’ll need to convince investors that you’re a worthwhile investment. Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. Key Takeaways The SaaS “crash” reminds us to drive our investing from corporate finance fundamentals.

Metrics 257

Metrics Marketing SaaS SMB 257

Stax

DECEMBER 20, 2023

Set rate processing Subscription rate processing TL;DR Interchange fees are not collected by your payment processor or bank; they go directly to the card-issuing banks. At the end of the day, how much you’re paying for credit card processing relies on your payment solutions provider.

Payment Services 167

Payment Services Merchant Services Payment Methods Payment Solutions 167