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Tomasz Tunguz , General Partner at Theory Ventures, shares nine observations from a Go-To-Market survey Theory Ventures did with hundreds of startups, 68% of them early-stage, well-funded, mostly mid-market ACV, and 25% remote. This creates a much harder capital markets environment. Why is the mid-market harder?
” The SaaS Market Has Turned a Corner According to Brian, who sees the market through multiple lenses as HubSpot’s Chairman and through his role at Sequoia Growth and Propeller VC, the SaaS downturn that dominated 2022-2023 ended recently. “It felt like we came out of the recession in Q3 of 2024,” Brian noted.
Dear SaaStr: What Are Some Startup Costs That You Didn’t Anticipate? At least some of the early employees work for “low market”, if that. And they realize they have to pay market now. You have to pay market — once you can. Dramatically. Founders barely pay themselves much, if anything. You have to.
Dear SaaStr: How Do You Evaluate Startups for Seed Investments? Are they committed to this market and journey for a decade or more? The post Dear SaaStr: How Do You Evaluate Startups for Seed Investments? Here are our criteria for SaaStrFund.com : Are both the CEO and CTO insanely good? Better than I was as a founder?
Speaker: Brian Chang, Managing Director of Warburg Pincus & Scott Schwan, Chief Product Officer of A-LIGN
Scaling your SaaS business to the growth stage requires a strong product/market-fit, an optimized marketing funnel with repeatable sales processes, and a strategy for customer retention. In this webinar, you'll learn how to: Bridge the gap between product-market fit and go-to-market fit.
Dear SaaStr: If a startup is at $1.5M You should find, hire, and manage the VPs of Sales, Marketing, Customer Success, Product and Engineering and even Finance yourself. You should find, hire, and manage the VPs of Sales, Marketing, Customer Success, Product and Engineering and even Finance yourself. I think $1.5m A bit earlier.
It shipped Lotus 1-2-3 in January ’83 and sold $50m in software in its first year on the market — that must be $100m+ in today’s $$$. Anyhow, even after in the end, “losing” this initial market to Microsoft … Microsoft / Bill Gates still bought the company for $3.5 to Wikipedia. billion in ’95.
Dear SaaStr: How Big Should The Addressable Market Be to Go into Vertical SaaS? I try to look at two things in Vertical SaaS startups, at least when investing : Will everyone in the vertical / industry use it? If I see evidence of that, I get very bullish — even if the market doesn’t seem huge. That’s the question.
Lemkin Change his Point of View on The Value of a COO for Earlier Stage Startups? She should hire leaders for Sales, Marketing, Engineering, Product and Customer Success, or at least most of them. Lemkin Change his Point of View on The Value of a COO for Earlier Stage Startups? Dear SaaStr: Why did Jason M.
Speaker: Sneha Narahalli - VP, Head of Product at Sephora
Only 20% of these companies attain product market fit, despite years of excruciating effort by founders, early employees, and investors. Creating an iterative process to identify Product Market Fit. What metrics you should track to measure product-market fit. At least 3,000 start-ups receive seed investment each year.
Don’t try to evolve into a compound startup later – Unlike conventional wisdom about starting focused and expanding, Conrad believes it’s “really hard” to transition from a point solution to a compound startup: “You kind of have to almost refound the company.” The advantages are substantial: 1.
Dear SaaStr: What is it like to be pitched by startups as an investor? Or you love the team but the market is just too small, or growth is good but not great. There is no point IMHO in meeting any startup you dont think you would potentially invest in. This is 80%+ of the investments Ive done. But it almost never does.
So at SaaStr Annual, Dave Kellogg did a great deep dive on “5 Things Every B2B CEO Needs to Know about Marketing” In the Age of AI it’s even more true today, so I wanted to update our SaaStr take-aways from the deep dive. You founded a product company, but you’re running a distribution business.
Dear SaaStr: How Much of a Threat is AI to Traditional B2B Startups Today? link] — Marc Benioff (@Benioff) March 29, 2025 In most cases, AI wont outright kill SaaS B2B startups now or even soon. Explosion of Competition : AI has lowered the barriers to entry for new startups. In fact, they are embracing it.
For the first time, we’re sharing the winning plays that took us from scrappy startup to a publicly traded company. Meet your modern sales playbook - See how high-performing sales and marketing teams increase pipeline year-over-year. Use our proven data-driven plays to grow your pipeline and crush your revenue targets.
Dear SaaStr: When and how should SaaS startups offer reduced pricing vs the competition? Updated) The post Dear SaaStr: When Does It Make Sense to Price Low in the Market? For most SaaS apps, you want to at least start with just right, Goldilocks pricing: #1. Too high a price, and you start to add friction to the sales process.
When talking to startup founders or other innovators, we always ask questions to better understand their business as a core. Another thing that Dave has done well is to look at the value of different marketing channels: There’s a lot of value in this presentation. Focus on building an MVP to gather startup metrics.
Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. Startups operate in newer markets where pricing standards haven’t been set.
What does it mean to be a CTO for a startup? Should a startup CTO spend their time programming? Here’s a graphic from Socal CTO that illustrates the roles as they change over time: In its earliest days, a startup’s top need is often to produce a product. What does the role demand? Exploring new technologies? It might be.
After identifying that you have a great product that the market needs, the next step is to determine if you have the proper messaging, if you are using the correct channels, and if you have the most effective tactics in place. Sales effectiveness = Product Market Fit*(Messaging + Channels + Tactics).
Marketing hackers, sales hackers, product hackers. " @searchbrat @zapier @kippbodnar @HubSpot @jasonlk pic.twitter.com/dUudpe9s2Q — SaaStr (@saastr) April 16, 2024 HubSpot and Zapier’s CMO had us on their “Marketing Against the Grain” pod / videocast. ." "We all need more hackers on our team.
Salesforce is ceding the startup CRM market to HubSpot. But I would tell every startup I invested in or worked with to move onto Salesforce — at least once they hire a real VP of Sales. Now I just see so many fast-growing startups now just starting on HubSpot, but staying on HubSpot. Does it matter? But it worked.
Dear SaaStr: What are some of the “ultimate sins” in marketing and sales and success in SaaS in the early stages? Hire stretch reps if you want, but someone without any closing experience likely can’t close at your startup no one has ever heard of. Startups are a journey and you need reps that want to be on the journey.
Klaviyo dominates marketing in the Shopify ecosystem and in ecommerce, and just keeps on scaling. But it’s clear that it’s still in the investing phase, and increasing spend in sales & marketing. New Startups and Companies and Enterprise Strong. So the latest SaaS leader to cross $1B ARR is Klaviyo. SMB Weaker.
It emphasizes the importance of transparent pricing, flexible contracts, and robust go-to-market strategies. Whether you're an established firm or a startup, these insights will help you make informed decisions, ensuring your payment strategy is not only profitable but also in sync with your long-term goals.
Suppose you’re a startup in a competitive market with a large incumbent who owns the system of record - the software that runs the sales team or the support team or the marketing team. In the last decade, startups have chosen to identify a feature or workflow to improve & leverage that wedge into an advantage.
The Top Marketing Strategies for 2025 Growth with the CMOs of Snowflake, LinkedIn, and Carta #4. . “A Lot of Great Sales Leaders — Just Aren’t Great at Selling Anymore. And Why You Really Need a VP of Sales, and Not a CRO.” ” #2. The Cloud Bubble Lasted About 18 Months. How Long Will the AI Bubble Last? #3.
SaaS products and services like Pilot track the finances of 1,000s of SaaS and other startup so they’re an interesting source of hard data. Something that’s both not surprising but also pretty impactful: 57% of venture-backed startups will have to go “back to market” in 2024 to raise more capital.
Slower sales cycles create pipeline shocks & startups are feeling the impacts. The average startup saw a 24% increase in sales cycle from early 2022 to 2023. Startups selling to enterprises have increased 36%, twice those of Mid-Market & SMB focused companies. 60 day sales cycles are now 75 days.
Dear SaaStr: What Is The Best Indicators of Product Market Fit at an Early Stage SaaS B2B Startup? This is a rough metric, but I’d say from experience working closely with 25+ SaaS companies … if you aren’t growing > 10% a month after $10k in MRR or so … then you don’t yet have product-market fit. Not yet at least.
In a recent Workshop Wednesday, SaaStr Founder and CEO, Jason Lemkin sat down to discuss 9 signs a startup isn’t going to make it. So, let’s look at the nine signs a startup will likely not be a real success. A truly great founder understands the market so well that it’s shocking. If you don’t see it, it’s a bad sign.
Dear SaaStr: In B2B Startups, How Useful is Cold Calling? The reality is no matter how trained your team is here, some markets have higher “connect rates” than others. The post Dear SaaStr: In B2B Startups, How Useful is Cold Calling? Look, I hate getting those calls. Do those work? I don’t know. If You Do It Right.
Dear SaaStr: What is The Biggest Difference Between Running a 10 Person Startup and a 100 Person Startup? You won’t be able to scale this far without a full management team — VPs of Sales, Marketing, Product, Engineering, Customer Success at least. But the toughest personal challenge for many CEOs is letting go.
Just how big is the current web3 B2B SaaS total addressable market (TAM)? But a nascent mid-market does exist : 41 companies produced between $5-25m. in startupmarket cap. To contrast with web2, Salesforce counts 150k customers in a market of about 650k who spend $57b annually. This is just the web2 CRM market.
What drives the acquisition market of startups? It’s the big deals. In the last decade, the total number of venture backed software M&A by count has remained relatively constant. The black line shows the linear trend across US venture backed companies with disclosed values of $50m or more.
How To Perfectly Pitch Your Seed Stage Startup With Y Combinator’s Michael Seibel at SaaStr Annual #2. Rippling CEO Parker Conrad’s Theory of the Compound Startup: Disrupting How We Think About Software #5. Top 10 Go To Market Mistakes Founders Make Again and Again with SaaStrs Jason Lemkin #10.
Parker Conrad, founder CEO at Rippling, has done a great job including at SaaStr Europa talking about building compound startups. What I mean is going all-in on a Big Second Product that doubles your market or more. CRM is probably bigger than Marketing now (HubSpot doesn’t break it out anymore). We can’t all be Rippling.
Sales development, content marketing, & software engineering strike me as the workstreams that will benefit immediately. Content marketing 30% 5% 1.5% Startups should focus on AI for Execs (perhaps why legal has been a heavily funded category) & AI for common workstreams (code autocompletion).
And it also makes it harder to meet the “ask” of a startup that might want a much higher revenue multiple. Both the markets and Salesforce’s revenue multiple were much stronger then. #2. So that seems to make deals more expensive in terms of how much stock (if not cash) it takes to buy something.
Dear SaaStr: Should We Introduce Freemium in Our B2B SaaS Startup to Boost Growth? How will you split your marketing budget? And brute force the conflicts with your existing sales and marketing motions. Probably not. Not because in theory it’s a bad idea. If you start there, and do OK there, you can then go upmarket.
Dear SaaStr: What Are Some Signs a StartUp Team is Going to Underperform or Overperform? Outperforming is both seemingly obvious (strong team, strong market, proven ability to create products people want to use/buy) and also nebulous. Of course, very strong market pull can overcome almost anything if it scales you quickly enough.
Battery Ventures: Startups Are Actually Far More Overvalued Now Than in 2021 #3. How to Successfully Bring AI Products to Market at Scale with GitHub’s CRO” # 2. “Samsara’s Rise to Vertical SaaS Leader and $1B+ ARR with Samsara’s CEO and Co-Founder” #3 What Really Matters in SaaS in 2025 with Jason Lemkin and Dave Kellogg # 4.
Hang around startups & venture capital long enough, & you’ll hear this aphorism. In any given year, there’s an 82% chance the value of startup liquidity will change by more than 77% - both up & down. Aside from certain crypto tokens, it’s hard to find a less reliable market than the VC exit market.
Dear SaaStr: What Were the Biggest Mistakes You Made Getting Your Startups Going? In my first start-up, while the core 3 co-founders were great, we needed an operational COO to really get to market with our customers. The biggest two mistakes I made, I made twice, maybe thrice. I closed arguably the best COO in the U.S.
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