SaaStr

MARCH 14, 2024

Mobile Subscription Pricing is Flat, Not Up This is interesting. I suspect it’s because of the huge friction in mobile of moving beyond organic price points like $9.99 a month to pricing, especially for the existing base. #3. It’s actually even harder over there. So in many ways, they have to be better.

Mobile 271

Mobile Payment Features Subscription Pricing 271

SaaStr

AUGUST 26, 2022

Series B and later prices are down across the board from their peaks in 2021 and Q1’22, down 30% or more. Fenwick’s blended numbers see overall Series B and later round pricing down about 30%. #3. But overall, valuations and prices post-Series A still remain way ahead of where they were up until 2018.

Pricing 316

Pricing Social Media B2C Startup 316

Tom Tunguz

JULY 11, 2024

3x as productive as humans, which would parallel mechanical robots, how does a software company price? Building on yesterday’s post , pricing in software companies may change significantly when AI agents become the norm. This would be a significant increase in price, but the value of the software would be much higher.

AI 228

AI Pricing Software Compensation 228

Tom Tunguz

JULY 10, 2024

Pricing an AI product will be a defining question in software for the next few years. We can observe the market trends today across some of the larger SaaS companies who offer AI pricing. Company Product Base Price AI Price Ratio Github Github Enterprise 21 10 0.67 AI products offer productivity gains.

AI 220

AI Pricing Sales Hiring Strategy 220

SaaStr

MARCH 19, 2024

And only 1/3 of these have an exit for 3x-10x the price of the last round, i.e. enough for anyone to make any money. The post What Are The Odds You Get Acquired Within 5 Years for a Good Price? What’s less clear is how many were acqui-hires or acquisitions for a very small amount. So my educated guess from this data: 1%-1.5%

Pricing 271

Pricing Acquisition Startup Education 271

SaaStr

MARCH 5, 2024

Dear SaaStr: What’s the #1 Most Important Thing in Pricing A New SaaS Product? Most first-time SaaS CEOs price too low and don’t drive ACVs up quickly enough because they don’t quite yet understand the context of the product. More here: The 3 Types of Day 1 Pricing: Low End of Normal. At least annually.

Pricing 215

Pricing SaaS Software 215

SaaStr

MARCH 26, 2024

In it, we cover the SaaS community’s most pressing questions about Artificial Intelligence (AI), pricing, efficiency, and funding. Today, folks seem to be launching fewer features, ratcheting prices, and digging into the existing customer base. “If When you’re mature, raising prices by $1 might make sense.

AI 253

AI Pricing Artificial Intelligence Scale 253

SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. Why is pricing so tricky?

AI 208

AI Artificial Intelligence Pricing SaaS 208

SaaStr

SEPTEMBER 15, 2024

How to price and package AI SaaS products with Sandhya Hegde at Unusual Ventures Pricing is always a super popular topic and this was a great one from Unusual Ventures on pricing in the AI age. Watch / listen and you will do better in GTM. I guarantee it. #5.

AI 267

AI Pricing Scale Scaling 267

SaaStr

DECEMBER 21, 2024

Dear SaaStr: When and how should SaaS startups offer reduced pricing vs the competition? 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. The answer is simple: mark up your pricing equal to the average discount.

Pricing 142

Pricing Marketing Startup Sales 142

SaaStr

JULY 1, 2024

Generally speaking, there are two paradigms: Buy them out at Common Stock price (which is what they in fact own), based on the lastest option pricing. And they can figure out the price and discount. The post Dear SaaStr: If You Want to Buy Shares from a Founder That Has Left the Company, What Price Do You Use?

Pricing 231

Pricing Investment Leadership Strategy 231

SaaStr

MARCH 29, 2024

The post Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? But even if you’re out of ideas for now, don’t give up all hope of a potentially decent M&A offer, especially if you are cash-flow neutral and haven’t raised too much (that’s important).

Pricing 256

Pricing Scale Startup Acquisition 256

SaaStr

DECEMBER 29, 2024

. #4: 10 Simple Steps to Improve The Odds You Get VC Funded #5: Pitchbook: 30 VC Firms Raised 75% of All the VC Capital in 2024 Top Videos and Pods: #1: What It Really Takes to Sell To Developers and Engineers with Komodor CRO Jim Hunnewell #2: How to Think About Product-Led Growth, Bootstrapping vs VC, and Early Exits with Jason Lemkin #3: From (..)

AI 185

AI Sales Hiring Pricing Development 185

SaaStr

DECEMBER 15, 2024

How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #3. How to Train Your Sales Leaders with Michelle Benfer, ex-CRO Bill and HubSpot The post Top SaaStr Posts and Vids of the Week: GitHub’s CRO, OpenAI on Pricing, A16Z on AI in SaaS, and More! appeared first on SaaStr.

AI 199

AI Sales Hiring Pricing Scale 199

SaaStr

MAY 10, 2024

At this week’s Workshop Wednesday, Lucas Price, former SVP of Sales at Zipwhip and founder and CEO at Yardstick, shares his insights on how to hire and build a high-performing sales team. When he joined Zipwhip, they were at a quarter million in ARR, and he took the sales team to over $100M before it sold to Twilio for almost $850M.

Sales Hiring 194

Sales Hiring Scale Sales Interviewing 194

SaaStr

OCTOBER 25, 2024

8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. You get a base number of minutes for a particular price. But now there’s been a broad shift toward usage-based pricing or seat-based pricing, or a combination of the two.

Venture Capital 290

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SaaStr

MAY 7, 2024

What I mean what you want is a pricing structure that anticipates discounts so the net effect is revenue positive. Later, when you implement a CPQ and other more sophisticated systems to manage pricing for a large sales team, these processes and systems will be designed to help you do just that, at least in part.

Pricing 244

Pricing Churn Enterprise Branding 244

SaaStr

JUNE 27, 2022

Not only were the prices basically identical, but so were a few other facts: Both had a nice, roughly similar premium price (usually necessary to get a deal done to acquire a public company): Anaplan a 41% premium to their trade price, and Zendesk 34%. You can’t argue that when they paid 40% higher than the public share price.

Acquisition 320

Acquisition SaaS Pricing Revenue 320

Tom Tunguz

JANUARY 4, 2022

Deltas between the figures provide insight into which sectors' tokens investors price at relatively elevated multiples. In reality, the markets are still so new, valuation mechanisms so novel, and price swings driven by social signals that it’s spurious to apply this way of thinking to an embryonic market. revenue share but 1.7%

Payments 363

Payments Revenue Payment Solutions Blockchain 363

Tom Tunguz

FEBRUARY 22, 2022

Last year, early stage prices expanded by half without the benefit of hedge-fund money. Hedge fund flows into early venture will challenge the market’s bearish disposition and define pricing dynamics in 2022. Whether positive or negative pricing momentum will prevail is hard to predict. Hedge fund activity correlates at 0.95

Finance 349

Finance Pricing Investment Startup 349

SaaStr

JUNE 29, 2023

As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. The Year of the Price Hike In 2023, companies face a hard reality –– SaaS prices are rising. Why are SaaS Prices Increasing? weakest link.

VP of Engineering 257

VP of Engineering Trends Cybersecurity Sales Hiring 257

SaaStr

NOVEMBER 8, 2024

AI SDRs have taken off more quickly than AI AEs (although personally, I suspect more value will be in AI SEs and AEs that can answer my deep product and pricing questions instantly, without games). But what about the more personal sales side? But is it working yet, these AI SDRs?

AI 309

AI B2B Engineering Customer Support 309

SaaStr

SEPTEMBER 8, 2024

Pricing is always evolving. Pricing is one of the trickiest topics for SaaS founders and is something that is always evolving as you continue to get a better understanding of your customers, the value your product drives for them and your own sales process.

Sales Recruiting 324

Sales Recruiting Scale Venture Capital Sales Hiring 324

SaaStr

SEPTEMBER 14, 2024

Pricing “cheap” won’t get prospects to come find you, not usually. And raise pricing further. So lower pricing can work. More here: The 3 Types of Day 1 Pricing: Low End of Normal. Yes, to some extent — once a category is well established and there is a subset of functionality that is commoditized.

Scale 271

Scale Pricing Branding B2B 271

SaaStr

MARCH 22, 2024

And on a related note, Redpoint data shows that the hottest late-stage “AI” deals are getting done at 3x the price of non-AI deals. We knew that, too, but helpful to see it clearly here: But, while AI deals are priced at 3x “normal” growth rounds — investors are looking for 2.5x the growth.

AI 315

AI Pricing Investment Data 315

SaaStr

JUNE 17, 2022

And even those prices are often higher than public market comps. FWIW, I think this understates valuation drops a bit because some “seeds” here are extensions at a price from last year. Per AngelList: About this market data.

Pricing 342

Pricing Investment Data Marketing 342

Tom Tunguz

SEPTEMBER 15, 2022

Doesn’t this acquisition reset the market price despite this year’s 70% correction? When modeling investment cases, VCs often use a basket of comparables - not a single transaction - to justify prices, even if that single transaction is a firecracker that lights up the entire night sky. The answer is likely not.

Startup 332

Startup Acquisition Pricing Revenue 332

SaaStr

JANUARY 11, 2023

And while it’s stock price is down from its 2021 peaks, it’s still up 2x since its 2020 IPO. Docebo’s pricing is on the “corporate” side of LMS. It doesn’t compete at the bottom of the market, and targets top logos with a reasonably priced product. That’s right. Billion Market Cap.

Scale 337

Scale Pricing Scaling Enterprise 337

SaaStr

JUNE 21, 2023

Another common pitfall to watch out for is executive recruiters sending along candidates who are out of your price range. Lesson #7: Pricing Has No Right Answer “Pricing can be a total time suck because there’s no right answer,” Harbaugh says. There is no right answer to pricing. A good recruiter is worth it.

Sales Recruiting 264

Sales Recruiting Sales Hiring Underperforming Technical Team Pricing 264

SaaStr

MAY 25, 2023

Because the reality is, acquisition offers at a decent price — as measured against revenue, time, and effort — actually come at distinct phases of your company’s lifetime. At other times, the price can be crappy. Vaguely. But Not Really. Here’s what happens: Pre-Revenue – You Aren’t Interesting.

Acquisition 361

Acquisition Venture Capital Scale Generative AI 361