Tom Tunguz

JUNE 1, 2024

Last week, public software markets suffered significant compression. Future revenue ramps have been the dominant driver of software valuations for the vast majority of the last decade. Some context is helpful : during the same period, total software revenue across the public companies grew from $124b to $592b.

Software 316

Software Marketing Revenue Business 316

Tom Tunguz

APRIL 28, 2024

In the last decade, the total number of venture backed software M&A by count has remained relatively constant. Nevertheless, there are huge differences between the total value created by software M&A annually. What drives the acquisition market of startups? It’s the big deals.

Acquisition 314

Acquisition Startup Venture Capital Software 314

Tom Tunguz

SEPTEMBER 10, 2024

The new software GTM playbook has yet to be written. Figuring out how to consistently produce wow moments with non-deterministic software is essential. Ultimately, pricing captures 15-30% of the value the software/AI creates. But the companies who figure it out will become the next wave of massive businesses.

Software 304

Software Sales Hiring Customer Lifetime Value Scale 304

Tom Tunguz

APRIL 21, 2024

In “Do software companies actually have good margins?”, ”, Benn Stancil makes a case for a counterintuitive point : Software companies are much less profitable than they might seem. Because the research & development costs associated with software should be part of their cost of goods sold.

Software 296

Software Business Construction Government 296

Clouded Judgement

FEBRUARY 14, 2025

Every week I’ll provide updates on the latest trends in cloud software companies. Will the macro turn in favor of software buyers? We’ll see how the rest of software earnings shake out - but so far I’d categorize the guides / outlooks for the year as “meh” at best. Follow along to stay up to date!

Cloud 144

Cloud Software Subscription Payment Features 144

Payrix

FEBRUARY 4, 2025

Interested in learning more about software-led payments or joining the current Embedded Payments conversations in your organization? Terms related to integrated payment technology Application programming interface (API) A set of routines, protocols, and tools that are used for building software applications.

Payment Services 147

Payment Services Merchant Services Payment Solutions Payment Methods 147

Payrix

NOVEMBER 19, 2024

In the latest episode of PayFAQ: The Embedded Payments Podcast, Ian Hillis speaks with Brad Pinneke , VP of Business Development at Payrix and Worldpay for Platforms, about one of the most important decisions software companies face today: choosing the right payments partner. How do those goals align with potential payments partners?

Payments 130

Payments Embedded Payments Payment Solutions Payment Services 130

Tom Tunguz

JANUARY 28, 2024

The fastest growing software category in the public markets is security. These two software categories lead buyers’ priorities & are expected to grow at twice the pace of the overall software market. For now, software buyers view security & data products as highest priority. Data follows.

Software Review 321

Software Review Software Finance Acquisition 321

Payrix

NOVEMBER 13, 2024

At Payrix from Worldpay, we see the potential in empowering software platforms to deliver valuable financial products seamlessly within their user experience. Meet some of our experts driving this shift for our software partners and see how Embedded Finance can enhance your platform’s revenue, customer loyalty, and growth potential.

Payments 130

Payments Finance Payment Solutions SaaS Payments 130

USIO

APRIL 4, 2025

For medical billing software providers, that means delivering more than just clinical functionality. With ACH payments and card acceptance integrated directly into the medical billing software, facilities can process transactions faster, reduce outstanding balances, and better predict cash flow. Its mandatory.

Payments 130

Payments Payment Solutions Payment Services Payment Methods 130

Payrix

JANUARY 10, 2025

Ian Hillis welcomes David Blair, Senior Director of Product Management at Worldpay for Platforms, on PayFAQ: The Embedded Payments podcast to explore the critical roles of merchant underwriting and onboarding for software providers. Check out this helpful blog: The essential elements of merchant underwriting for software companies.

Merchant Services 130

Merchant Services Payment Services Payment Solutions Payments 130

SaaStr

JULY 13, 2024

SaaS and Software Multiples Are at Near All-Time Lows — Because Growth Has Slowed We already know this, but why? Software Growth Will Bounce Back, With AI As the Accelerant Coate believes software growth will rebound, it’s just the next wave after semiconductors and infrastructure. Coate believes it’s simple.

Software 330

Software AI Scale Investment 330

Tom Tunguz

MARCH 28, 2024

AI will transform software sales. When researching software, operational buyers & procurement teams alike will use AI to research different offerings. A buyer types “buy 5 seats of the best Gantt charting software for software teams.” But the buyers’ process will also evolve. which is better?

AI 293

AI Software compliance Consulting 293

Payrix

JANUARY 28, 2025

In this episode of PayFAQ: The Embedded Payments Podcast, host Ian Hillis welcomes Matt Downs, President of Worldpay for Platforms, to discuss software-led payments predictions for 2025 and beyond. remains the largest interchange and software market, Matt predicts a loosening of regulatory constraints.

Payments 130

Payments Payment Solutions Merchant Services Payment Methods 130

User Pilot

OCTOBER 19, 2024

Think of Net Promoter Score (NPS) software as a tool to measure your customers’ feelings about your product, and categorize them based on their level of loyalty (promoters, neutrals, and detractors). NPS Software FAQs What is NPS software? What is the best NPS software? The best NPS software depends on your needs.

Software Review 105

Software Review Technical Review Software B2C 105

Clouded Judgement

AUGUST 16, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now The Great Services-To-Software Rotation There's a lot of debate right now about the economic impact of GenAI. They contend that AI agents, capable of handling infinite workloads, will ultimately reduce the need for software spend.

Outsourcing Services 274

Outsourcing Services Cloud Software Outsourced Development 274

Payrix

FEBRUARY 4, 2025

What is an integrated software vendor? An integrated software vendor more commonly known as an ISV is a software company that engages in a partnership with a payments provider in order to integrate payment processing capabilities into their platform. 3 things you should know about integrated software vendors 1.

Payments 130

Payments Payment Services Payment Solutions PayFac as a Service 130

Tom Tunguz

NOVEMBER 12, 2023

Recently, I was on the HR Heretics podcast and we talked about the increasing efficiency of software companies (in addition to other topics including the implications of AI for executives, how to diligence a candidate, & what board members expect of their people leaders).

Software Review 331

Software Review Trends Revenue Software 331

SaaStr

SEPTEMBER 9, 2024

Dear SaaStr: How Can I Get The Attention of Software VCs? # The post Dear SaaStr: How Can I Get The Attention of Software VCs? 1: Get Out There: Get in TechCrunch. Get on Hackernews. Get on stage at any B tier or A tier event. Get warm intros from any successful founders or seed investors you know. appeared first on SaaStr.

Software 302

Software SMB Banking Startup 302

Clouded Judgement

JUNE 19, 2024

Q1 was a very weak quarter of software earnings. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. Some software companies also have seasonality in the “payback.” net retention and CAC payback). Subscribe now What Happened in Q1?

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

SaaStr

OCTOBER 25, 2024

For the subsequent ten years in software, we’ve optimized every little bit of how we sell it. But today, it’s different because the kinds of software we sell aren’t the same. Six months ago, security was the number one prohibition preventing businesses and software companies from buying AI. It isn’t predictable.

Venture Capital 333

Venture Capital Marketing AI SaaS 333

Tom Tunguz

NOVEMBER 5, 2023

Six quarters ago, profitability became the most important factor to public software valuations. 14 public software companies have reported earnings in this quarter so far. These companies’ earnings surprise has been prodigious. Positive surprise means a better result than expected.

Software 317

Software Management Revenue Marketing 317

Payrix

NOVEMBER 7, 2024

At Payrix from Worldpay, we have an internal team of risk management experts dedicated to helping software companies, like yours, manage payment processing, fraud prevention, and compliance. Such innovations save time and mitigate potential losses for our software partners and their users. Here’s what they want to know. compliance.

Merchant Services 130

Merchant Services Payment Services Payment Solutions Payments 130

SaaStr

JANUARY 18, 2024

spend in software spend in 2024 to over $1 Trillion. To over $1 Trillion in software spend worldwide — for the first time ever. The post Gartner: 2024 Will be Tougher Than We Thought, But We’ll Still Cross $1 Trillion in Software Spend appeared first on SaaStr. It was previously projecting a 13.8% Earn that budget.

Software 333

Software 333

Stax

MARCH 16, 2025

The average churn rate for the software industry as a whole is 14%. As a SaaS business leader, reducing software user churn is an important part of maintaining your customer base and increasing revenue. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%. Looking to measure churn?

Payment Solutions 88

Payment Solutions Software Review Churn SaaS Payments 88

Tom Tunguz

FEBRUARY 26, 2025

Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale. There are exceptions: Oracle’s database, Tanium’s security product, Workday’s human capital management software. Application software companies typically sell seats.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

MAY 6, 2024

My biggest take-away: there are barely more than 50 acquisitions of $50,000,000 or more, at least disclosed one, in software of U.S.-based But for founders, the bigger take away is that over the past decade, the amount of software M&A isn’t going up, even as the number of SaaS startups has exploded. By dollars, yes.

Acquisition 286

Acquisition Software Review Software Cloud 286

SaaStr

NOVEMBER 6, 2023

If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday , things are pretty, pretty good, if in some ways still harder than before. If you’re selling sales and marketing software, like Zoominfo, it can seem a lot tougher than 12-18 months ago. So where does this all net out?

Merchant Services 310

Merchant Services Azure Software AWS 310

SaaStr

NOVEMBER 12, 2024

Because valuations are as high as ever, and yet … public software multiples are far, far, far lower than 2021. Battery does believe it’s possible AI can 4x the spend on software and software infrastructure by “stealing” another $3 trillion in spend from service and labor displacement. in 2021 to 23.4x

Startup 296

Startup AI Cloud Mobile 296

SaaStr

NOVEMBER 27, 2024

Its product provides software to spas and salons but it’s not new (the first salon software came out in the 80s), and neither is a lot of the vertical software getting hot today. 10-15 years ago, salon and spa software was essentially a calendar with bells and whistles. readily available that didn’t exist before.

SaaS Payments 259

SaaS Payments Payments Payment Solutions Payment Services 259