Fresh Insights

Analyses, Musings & Observations

AE and SDR data

The Bridge Group is a SaaS sales consulting firm that we hold in high regard.  They release outstanding sales data which can be found at their site, bridgegroupinc.com.  We recently reviewed their “SaaS AE Metrics & Compensation Report” which compiles data from 287 executives at SaaS companies with median revenue of $27mm and median ACV…
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SaaS multiples are now 13x

SaaS comps continue to be strong. Of the 120 SaaS companies we follow, the average public SaaS business is trading at 20.0x revenue while the median is 13.0x. The gap between the average and median is wider than ever at 7.1x, meaning premium SaaS companies are getting outlier valuations. 57% of companies are trading at…
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Lessons from the latest SaaS IPO

Amplitude is a software company that just went public. Below are some of the highlights from their prospectus. The key learnings we took away: charge for the value you’re providing, not just by user; upsell by expanding use cases for the client; drive unlimited usage at the customer to make yourself sticky; and international markets…
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Learnings from the latest SaaS IPO – ForgeRock

ForgeRock is a software company that just went public. Below are some of the highlights from their prospectus. The key learnings we took away: this is a software company that transitioned to SaaS from perpetual license, pricing is not per-user, 3:1 ARR:loss ratio which is good in our view, sales are global, and upsells are…
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Stop pricing per user

In our view, it’s wrong to price SaaS contracts on a per user basis. Instead, a value based approach should be taken whereby the customer will see a 20x+ return on your software while you also earn 3x to 5x on your S&M spend to acquire the customer. Once you’ve figured out the price, delight…
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How long tech exits really take

We looked at how long it took 205 publicly traded tech companies to exit. Specifically, we used their prospectus (S1) to find out the year each company was founded and compared it to the last year financials were released as a private company. The data is below and organized between SaaS companies (140) and Other…
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SaaS learnings from the latest IPO

Definitive Healthcare just went public. While it may not be a household name in SaaS, there are some learnings from their prospectus. Below we summarize the highlights. It was a 10 year journey. “We were founded in 2011 by our CEO, Jason Krantz. Mr. Krantz founded the company to provide healthcare commercial intelligence that enables…
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How to sell code and dead startups

In 2017, we had a death in the portfolio. Once all the employees left, the only remaining assets were some patents, servers, domains, and a lot of code. Eventually we managed to sell that intellectual property (“IP”). Here is what we learned. Set expectations. The value of IP is a small fraction of what the…
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SaaS and Tech CEO salary data

There is no dataset explicitly outlining salary levels at early stage companies, but we can see salaries from tech companies prior to IPO. The data below shows the salaries of 162 tech company CEO’s at IPO. A few observations stand out:   Some of the best CEO’s take the lowest salaries. For instance, Marc Benioff…
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Learnings selling SaaS to SMB

Fresh Works just filed their prospectus (S1) to go public. Below we summarize the major points which we found interesting for running your SMB focused business. Fresh Works is large and growing, and unprofitable. “total revenue was $172.4 million and $249.7 million in the years ended December 31, 2019 and 2020, respectively, representing a year-over-year…
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