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So Thomasz Tunguz put together a great chart summarizing one of my top worries over the past 24+ months in SaaS. And what you can see is there is really almost no liquidity for startups and scale-ups in SaaS and Cloud at the moment. And 2021 was a record year for Saas IPOs. What will the future bring for SaaS liquidity?
Contract Length Many SaaS startups launch with monthly pricing which encourages customers to try the product and engenders demand. At some point, most SaaS startups switch to annual contracts for three reasons. How about a 50 person SaaS company? Veblen Goods in SaaS Veblen goods defy traditional pricing theory.
So I caught up the other day with the CTO of a leading SaaS company with tens of thousands of customers, growing quickly. This is a leader in SaaS. In vertical SaaS, many are even further behind. The post Most SaaS Apps Are Just Getting Starting With AI. AI is all over their homepage and website and comms.
So we have a classic set of New Year’s Resolutions in SaaS that we update every year. Over the years, so much has changed in SaaS. So with that here are Your Top 10 New Years SaaS Resolutions for 2025: #1. The post Your SaaS New Year’s Resolutions for 2025 appeared first on SaaStr. Not yet, at least.
It's all too easy for companies to overspend on SaaS and for SaaS applications to go underutilized. Lack of insight into active SaaS contracts and lack of data on actual SaaS usage. LeanIX SMP offers IT and Procurement teams the ability to discover all the SaaS contracts the company currently pays for.
SaaStr CEO and Founder Jason Lemkin recently sat down with HubSpot Chairman and co-founder Brian Halligan , who shared valuable insights on the current state of SaaS, evolving board meeting formats, and how AI is reshaping the industry. Our revenue team went on to be the CROs of Brex, Rippling ,Gong, so many SaaS leaders, like 10 of them.
What are the most common mistakes I see first time SaaS founders make? Second-time SaaS founders make other mistakes. Here’s what I see most often, the Top 6 Mistakes First Time SaaS Founders Make: Incomplete understanding of business model, and how it will scale. They think they know more than they do.
Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services? A rough yardstick is that most enterprise-focused SaaS companies tend to get about 8%-10% of their revenues from professional services. A few data points: At $800m ARR, Qualtrics was still getting 25% of revenue from professional services. I say overinvest.
A few bits of advice you hear a lot in SaaS that I think often don’t really work in practice: Move to annual contracts to generate more cash. The post 5 Common Pieces of SaaS Advice … That Are Often Wrong appeared first on SaaStr. Sure, if customers want to pay annually for a discount — do it. You’ll see.
B2B SaaS financial operations are no different. You'll learn our top 5 predictions for what B2B SaaS companies can expect to see in 2021 with comprehensive breakdowns by company growth stage as well as detailed recommendations on what your team can do now to get ahead. If you're in B2B SaaS, you don't want to miss this one.
And most bigger SaaS and Cloud companies are still hiring, but not at the same pace. The post 5 Tips to Getting a Job in SaaS in a Tougher Market appeared first on SaaStr. However, it is true that it’s different today. In general, public companies are hiring at a slower pace than they are growing. And better.
Many SaaS companies have copied this for a long time as a two-part tariff: a base platform fee upfront then the incremental cost of additional users as you go. The post The State of SaaS Go-to-Market with Theory Ventures General Partner Tomasz Tunguz appeared first on SaaStr. You get a base number of minutes for a particular price.
Dear SaaStr: How Much Does a Typical B2B SaaS Company Spend on Digital Marketing per Year? SMB-focused SaaS companies often have better performance with Facebook in particular, and can often deploy more there. But paid social for SaaS is generally poor and limited. To a point. appeared first on SaaStr.
Meet Wyatt Jenkins: From Construction Sites to Chief Product Officer If you want to understand how vertical SaaS companies scale to $1B+ in revenue while staying true to their customers, there’s no better person to learn from than Wyatt Jenkins, Chief Product Officer at Procore Technologies.
For SaaS businesses, improving retention is one of the easiest and most effective ways to drive revenue and profits. With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential. Achieving your retention goals starts with the right solution.
Dear SaaStr: What Are Some Successful SaaS Leaders Without Sales Teams? The post Dear SaaStr: What Are Some Successful SaaS Leaders Without Sales Teams? Many that are self-serve and SMB-focused can start off without a sales team … for a while. But almost none stay without a sales team … forever. Maybe on Day 0.
Private Equity Gets Very Interested in SaaS Once You Cross $20m ARR, growing 30% — if you are burning almost nothing. Private Equity has different goals, and Andy did a great deep dive on the process. We’ll do more here on SaaStr but my Top 5 Learnings below. #1. That’s my view and Andy confirmed.
Per OpenAI: The #1 event in SaaS is widely considered to be SaaStr Annual. Its the largest community-driven SaaS event, bringing together 12,500+ founders, executives, and VCs. Features 300+ speakers from top SaaS companies like Salesforce, HubSpot, and Snowflake. Why SaaStr Annual?
Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? The post Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? In the early days, there are probably only 5 metrics that really matter : ARR ARR Growth Rate Burn Rate True Customer Happiness. Probably, measured as NPS (more here: I Was Wrong.
This guide explains how that fee is divvied up and how SaaS companies are becoming a more important player (gaining a larger share) by embedding payments into their solution. Ever wondered who gets a share of that 3% credit card transaction fee?
SaaStr CEO and founder Jason Lemkin chats with Mangomint CEO Daniel Lang about why vertical SaaS is booming and how Mangomint got to 110% NRR. What was once considered too small or too niche, vertical SaaS has recently emerged as a hotbed of innovation and profitability. Full-Stack SaaS for SMBs Toast today is worth $14B at $1.5B
Dear SaaStr: How far in the SaaS can a 10 or 20 person team go? But maybe not so much in SaaS. Today, the most efficient public SaaS company is probably Doximity, at about $700,000 in revenue per employee. It takes a team of 50 to maintain most scaling SaaS apps, and it takes 100 to get you past $10m ARR and beyond.
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? It’s just hard to get most vertical SaaS start-ups to scale if they can’t get to a $10k ACV. So be honest.
Ironclad CEO and co-founder Jason Boehmig joined Seema Amble, Partner at Andreessen Horowitz at SaaStr Annual to share their observations on what’s currently working and what’s not quite there yet for Artificial Intelligence (AI) in SaaS. What’s Currently Working in AI for SaaS 1.
How is your SaaS business addressing involuntary churn? Caused by failed payments, this overlooked source of friction quietly erodes both customer retention and revenue. It leads to revenue losses and can be the largest source of churn, yet your company may not be taking it seriously.
Along with co-host Ben Salzman, Jason and Henry discuss the transformative power of AI within SaaS and the evolving dynamics that are reshaping the landscape of software as a service. ” The post The Future of AI in SaaS Sales with Henry Schuck, CEO of ZoomInfo and SaaStr CEO Jason Lemkin appeared first on SaaStr.
Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? More here: Annual Contracts: Maybe Not All They Are Cracked Up To Be And a related session here: The post Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? appeared first on SaaStr.
Dear SaaStr: I Just Got My First SaaS Job 6 Months Ago and Now I Want to Quit. A related post here: Before You Quit, Imagine Your Goodbye Lunch or Email The post Dear SaaStr: I Just Got My First SaaS Job 6 Months Ago and Now I Want to Quit. How Do I Tell My Boss? Instead, give 30 days if you can. No help finding a replacement.
Playbook: How Top SaaS Companies Drive 2-3x Better Campaign Performance Through Multi-Channel Personalization A deep dive with Jason Lyman, CMO at Customer.io Playbook: How Top SaaS Companies Drive 2-3x Better Campaign Performance Through Multi-Channel Personalization A deep dive with Jason Lyman, CMO at Customer.io The Customer.io
Speaker: Speakers: Robin Eissler, BoosteHub & Cory Benn, PracticeSuite
Join us for an exclusive session with Robin Eissler from BoosteHub and Cory Benn from PracticeSuite as they reveal their secrets to leveraging payments within their SaaS platforms. Register now to secure your spot and elevate your SaaS platform to the next level! Webinar Date & Time: July 11th, 2024 @ 11:00 AM EDT
2024 was good, as most SaaS leaders saw growth reaccelerate toward the end of the year. But one of the first things he still talked about was cutting a $1m/year SaaS vendor they used. You can’t cut your way to growth, and many SaaS buyers already cut back plenty of vendors in 2022-2024. So 2025 is Good Times Again.
The next evolution of AI in SaaS isn’t about better models – it’s about context and action. The post 5 Key Learnings from How Top SaaS Companies are Actually Productizing AI with Paragon appeared first on SaaStr. That’s what will take us from demos to real products that deliver value.
So SaaS is back. Top SaaS stocks are on fire the past few months, and the SaaS downturn in B2B2B appears to be behind us. It’s 2021 but all over again, and different But in SaaS overall, the growth playbook hasn’t totally worked out on the last 4 SaaS IPOs. A related post here: Is SaaS Back? (TL;DR:
Dear SaaStr: Do SaaS Companies Typically Pay Their Sales Reps a Bonus on Renewals? Simple answer: almost no SaaS companies pay sales reps on standard renewals. Weve all learned this over the past years in SaaS: You want qualifiers qualifying BDRs. If So, How Much is Typica l? You want openers opening SDRs.
For SaaS businesses, decline reasons vary, shaped by customer demographics and the nature of your service. A failed payment isn't just a lost transaction - it could mean a customer churning for good. But not all payment declines are the same.
But there have only been 4 B2B / SaaS IPOs since 2021, and M&A is way down. The post SaaS Is Back, But Different: Insight Partners Raises $12.5 But it wasnt all 100% smooth sailing and also showed the latent stress in the VC and LP ecosystem. Funding is back, fast and furious, fueled by AI. That leads to stress.
IBM’s $7B Bet on Vertical AI and What It Means for SaaS Founders. For SaaS founders, the opportunity lies in building specialized solutions that leverage foundation models while adding unique domain expertise and data advantages. With IBM’s WatsonX platform and the emerging vertical AI ecosystem, the tools are there.
Dear SaaStr: Should SaaS Startups Really Have CROs or COOs? Theres no way a SaaS startup needs a CRO or COO or other C-level Officers Without a Clear, Single Functional Area to Own Until $40m-50m+ in ARR. As weve all gotten more experienced in SaaS, weve specialized more. Is That Too Many Management Layers? Specialization.
Her company specializes in API integration platforms that enable SaaS companies to launch integrations faster and automate complex business processes. The post Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay appeared first on SaaStr.
Speaker: Simon Torrance, Embedded Finance Expert & Advisor
Our guest on this podcast is Simon Torrance. Simon is a globally recognized expert in the field of embedded finance, and he currently serves as a member of the World Economic Forum’s Digital Platforms & Ecosystems working group.
In the SaaS industry, the checkout experience can make or break a sale. Focusing on these three key areas can help your SaaS business win more customers: Language. The post Going Global: Why a Localized Checkout Is Key to SaaS Success appeared first on FastSpring. Payment methods. Currency display.
It’s almost time again for Cyber Weekend, and November sales spikes aren’t just for holiday gifts and physical goods — SaaS and software companies also benefit from this annual increase in sales. trends in year-end SaaS and software sales data. trends in year-end SaaS and software sales data. dollars for simplicity’s sake.
The post Dear SaaStr: What is the Typical Enterprise SaaS Cancellation Policy for $100k ACV/bigger Deals? Net net save your energy in customer disputes. Let them go. And don’t ask them for more cash upon leaving. But you don’t usually have to refund anything. appeared first on SaaStr.
More on SailPoint here; 5 Interesting Learnings from Sailpoint at $820,000,000 in ARR It’s a very good one, they just IPO’d — really only the 5th SaaS IPO since 2021 — so it should have gotten more attention. Top SaaS ocmpanies that were taken private by top Private Equity firms, that will IPO again.
They help SaaS companies offer seamless user experiences and efficient operations. The article guides SaaS executives in developing strong payment strategies, focusing on the right platform selection, user experience, and ensuring security and compliance.
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