Funding & Investment Archives - ProdSens.live https://prodsens.live/tag/funding-investment/ News for Project Managers - PMI Thu, 27 Jun 2024 13:20:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://prodsens.live/wp-content/uploads/2022/09/prod.png Funding & Investment Archives - ProdSens.live https://prodsens.live/tag/funding-investment/ 32 32 David Politis’ lessons learned over 20 years of building/operating companies through to exit https://prodsens.live/2024/06/27/david-politis-lessons-learned-over-20-years-building-companies-through-to-exit/?utm_source=rss&utm_medium=rss&utm_campaign=david-politis-lessons-learned-over-20-years-building-companies-through-to-exit https://prodsens.live/2024/06/27/david-politis-lessons-learned-over-20-years-building-companies-through-to-exit/#respond Thu, 27 Jun 2024 13:20:50 +0000 https://prodsens.live/2024/06/27/david-politis-lessons-learned-over-20-years-building-companies-through-to-exit/ david-politis’-lessons-learned-over-20-years-of-building/operating-companies-through-to-exit

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by David Politis, Founder…

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david-politis’-lessons-learned-over-20-years-of-building/operating-companies-through-to-exit

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by David Politis, Founder and Executive Chairman at BetterCloud.

“If you think about the journey of a company in the various stages of a business, we were getting to a scale where it made sense to find a partner who has a track record of taking companies to that next level, organically and inorganically, just to be really transparent. They have multiple ways of getting businesses to that next level, and we wanted to find a partner who could do that with us.”

In the episode, David shares:

  • How entrepreneurial spirit runs in the family
  • His journey to founding BetterCloud
  • BetterCloud’s journey to $100M ARR
  • The decision to acquire G2’s G2 Track product
  • How the role of a CEO changes as you scale
  • The top three things from the Startup Founder Survival Guide
  • And more!

Listen to the full episode, watch the video below and subscribe to the SaaS Revolution Show podcast today.

Watch now, or listen to the audio-only version below:


 

Listen to the audio now:


If you want similar tips and are looking to achieve success all year round, check out the SaaStock Founder Membership:

A private community of ambitious SaaS founders scaling to $10MM ARR. Get a support network of peers, connect with likeminded founders around the globe, and learn proven strategies from industry experts. Apply now to scale up your SaaS.


 

Want to join the pioneers at the forefront of The SaaS revolution? Subscribe to our newsletter today to get exclusive content, receive actionable value-based insights and create your Rocketship SaaS.

Plus – follow us on social! Check out our profiles on LinkedIn, X, Facebook, YouTube, Instagram, and TikTok.

And if you can’t wait another week for our next podcast, listen to our previous two here:

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Exiting your SaaS Business: Insights from Tim Schumacher, Co-founder of saas.group https://prodsens.live/2024/06/20/exiting-your-saas-business-insights-from-tim-schumacher-co-founder-of-saas-group/?utm_source=rss&utm_medium=rss&utm_campaign=exiting-your-saas-business-insights-from-tim-schumacher-co-founder-of-saas-group https://prodsens.live/2024/06/20/exiting-your-saas-business-insights-from-tim-schumacher-co-founder-of-saas-group/#respond Thu, 20 Jun 2024 00:20:32 +0000 https://prodsens.live/2024/06/20/exiting-your-saas-business-insights-from-tim-schumacher-co-founder-of-saas-group/ exiting-your-saas-business:-insights-from-tim-schumacher,-co-founder-of-saas.group

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Tim Schumacher, co-founder…

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In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Tim Schumacher, co-founder of saas.group, as he shares his insights on exiting your SaaS business.

 

“The one thing that’s moved the needle every time is being open about certain problems which appear in one business and solving them myself, in a way, and that usually made a good business. And those were always been than the ones where I was just looking at some general trend I didn’t really understand, those were my failures.”

 

Tim shares:

  • Growing his first business: from three friends in a garage to 300 people (before then selling to United Internet!)
  • His beginnings in angel investing and what constitutes a fundable founder
  • A saas.group snapshot: 20 companies acquired ranging between $1-$10M ARR
  • The key steps involved with acquisitions (and why soul searching is #1)
  • His advice to founders considering an acquisition… and why it’s important to remember valuation is just one factor!

and more!

 

Listen to the full episode, watch the video below and subscribe to the SaaS Revolution Show podcast today.

Watch now, or listen to the audio-only version below:


 

Listen to the audio now:


If you want similar tips and are looking to achieve success all year round, check out the SaaStock Founder Membership:

A private community of ambitious SaaS founders scaling to $10MM ARR. Get a support network of peers, connect with likeminded founders around the globe, and learn proven strategies from industry experts. Apply now to scale up your SaaS.


 

Want to join the pioneers at the forefront of The SaaS revolution? Subscribe to our newsletter today to get exclusive content, receive actionable value-based insights and create your Rocketship SaaS.

Plus – follow us on social! Check out our profiles on LinkedIn, X, Facebook, YouTube, Instagram, and TikTok.

And if you can’t wait another week for our next podcast, listen to our previous two here:

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Watch: SaaS Growth Challenges and How to Overcome Them https://prodsens.live/2024/05/10/saas-growth-challenges/?utm_source=rss&utm_medium=rss&utm_campaign=saas-growth-challenges https://prodsens.live/2024/05/10/saas-growth-challenges/#respond Fri, 10 May 2024 09:20:29 +0000 https://prodsens.live/2024/05/10/saas-growth-challenges/ watch:-saas-growth-challenges-and-how-to-overcome-them

Our CEO Alex recently asked our community of SaaS, founders, operators, and investors about the biggest growth challenges…

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Our CEO Alex recently asked our community of SaaS, founders, operators, and investors about the biggest growth challenges they’re facing. 

The most common? Fundraising, navigating market conditions, and go-to-market strategies that reach prospects and tackle lengthening sales cycles. 

We put these challenges to SaaS experts Alison Murdock (Trusted CMO), Jake Dunlap (Skaled Consulting), and Okan Inaltay (GP Bullhound) to get their take and understand how they’re working with founders and leaders to overcome them. 

Watch the full session below or read on for key takeaways.

1. Creating scalable outbound

“Scalable does not equal automated,” Jake Dunlap, Founder at Skaled. 

One of the key challenges for SaaS is building a scalable outbound sales motion that drives efficient growth. Skaled Founder Jake Dunlap has helped thousands of SaaS businesses develop repeatable sales operations, with clients including Adobe, Chargebee, and Appify.  

He assured us that outbound isn’t dead – rather, B2B sales processes have stayed the same, while buying habits have changed dramatically. Too many SaaS businesses are still pressing send all on mass, templated emails and expecting to hit their numbers. It’s a tactic that attempts to build scalable processes but the problem is that it assumes  scalable means automated – and, according to Jake, this couldn’t be further from the truth. He said: 

“We’ve got to start to create more dynamic customer journeys because more and more people are going to demand it.” 

And he shared a couple of stats to show how this is already happening: 

  • 90% of the buyer journey is now done before you speak to a sales person (Forrester).
  • 44% of millennials say they’d prefer a salesperson-less buying experience (Gartner). 

To create effective outbound sales motions, Jake advises SaaS companies to create differentiated journeys. 

To achieve this as scale, use tools like Chat GPT to provide insights and value specific to personas and prospects. This allows your sales reps to add nuance and value to your comms, without adding hours more work researching for outbound messaging and discovery calls. 

2. Streamlining GTM processes

GP Bullhound Investment Banking Director Okan Inaltay spoke about SaaS GTM strategies in relation to the increasing demand for efficiencies and profitability in the funding sector. He said:

“When you look at a [profit and loss] of a SaaS business, 30-40% of the revenue is typically spent on sales and marketing. Any improvements you can make that will hit your bottom line is a key focus these days.”

He advocates going through every line item on your P&L and looking for opportunities where AI and other tools can increase efficiency 10-20%. You can start with sales and marketing but it also applies to other costs like HR and recruiting, research and development (R&D), and general and administrative expenses (GNA).

On efficiencies, Trusted CMO Founder Alison Murdock spoke about the importance of aligning marketing activity to pipeline. For leaders, this means going beyond pushing sales and marketing alignment to finding the activity anchors and KPIs that ultimately tie all company activity back to revenue.

3. Fundraising in the current climate

“The bar for a Series A has definitely increased from less than a million of ARR to say two or 3 million,” Okan Inaltay, Direct, Investment Banking, GP Bullhound. 

Okan echoed reports that the fundraising landscape in 2024 has so far been a mixed bag. In general, uncertainty, rising interest rates, inflation, and geopolitical tensions are making investors more cautious. 

He explained how the impact is being felt in the VC space:

“I saw a stat somewhere that said less than 1% of the companies who applied for VC funding recently ended up receiving it – less than 1%. The bar for a Series A, for example, has definitely increased from less than a million of ARR to say two or 3 million of ARR – and investors are demanding better terms.”

To combat this, Okan recommends looking at alternative funding options, like debt financing and revenue based financing, to gain traction and bridge that gap.

But it’s not all doom and gloom. Okan said he receives calls and emails every day from investors looking to deploy capital into high quality SaaS companies. So better times are coming. Here’s Okan’s advice for founders looking to prepare: 

  • Be data driven: Know your SaaS metrics and unit economics, and how you track against competition. The market is rewarding companies that have growth and profitability at the same time at about 60% more premium in terms of valuation – making metrics like ARR per employee and the rule of 40 key.
  • Know your ICP: Identify and focus your efforts around a core ICP. Finding ways to deliver long term value will lead to higher average contract value (ACV) and net dollar retention (NDR).
  • Explore strategic partnerships: Start using strategic partnerships as a revenue channel early on rather than relying on direct sales.

4. Harnessing generative AI to power growth

Unsurprisingly, how to use generative AI to drive efficiencies and growth was a hot topic in this discussion. 

For Jake, the mistake people make is thinking that Chat GPT and others are new sales and marketing tools but they’re not. In his words, they’re “a foundational shift in how humans solve problems”. 

For GTM operations, AI can transform preparation and research processes. Jake advocates for using AI to provide insights, synthesise information, and package it up. 

For example, rather than asking ChatGPT to write you an email, ask it to give you industry insights or trends relevant to a specific persona. Then, get your sales team to QA and edit it to the point where it’s differentiated and adds real value to your audience.

To truly find where AI can transform your business – Jake recommends effectively “firing” yourself for a few days while you deep dive into its capabilities and use cases.

Explore these topics with our experts at SaaStock USA

Alison, Jake, and Okan are all taking to the stage at SaaStock USA this May 13-15  – alongside 60+ other speakers. They’ll be joined by 1500 SaaS decision makers rady to transform their businesses. It’s your chance to learns from the best minds in SaaS, network with your peers, and connect with investors to help overcome your SaaS growth challenges. 

Tickets are selling fast, so get in quick.

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David Klein, Co-founder and Managing Partner at One Peak on How the SaaS and Investing Market is Changing https://prodsens.live/2024/05/02/david-klein-co-founder-and-managing-partner-at-one-peak-on-how-the-saas-and-investing-market-is-changing/?utm_source=rss&utm_medium=rss&utm_campaign=david-klein-co-founder-and-managing-partner-at-one-peak-on-how-the-saas-and-investing-market-is-changing https://prodsens.live/2024/05/02/david-klein-co-founder-and-managing-partner-at-one-peak-on-how-the-saas-and-investing-market-is-changing/#respond Thu, 02 May 2024 10:20:11 +0000 https://prodsens.live/2024/05/02/david-klein-co-founder-and-managing-partner-at-one-peak-on-how-the-saas-and-investing-market-is-changing/ david-klein,-co-founder-and-managing-partner-at-one-peak-on-how-the-saas-and-investing-market-is-changing

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by David Klein, Co-founder…

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david-klein,-co-founder-and-managing-partner-at-one-peak-on-how-the-saas-and-investing-market-is-changing

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by David Klein, Co-founder and Managing Partner at One Peak, who shares his insights on how the SaaS and investing market is changing.

 

“1% increase in growth, the impact on valuation is the same as a 3% increase in profitability- even today. So growth is just valued at three times profitability, even today. And that number was about 12x in November 2021, so at the height of the bull market. So growth is, in our mind, still really important, and if you want to build a big business, you just have to grow.”

 

David shares:

  • From resigning on the same day to where One Peak is today; three funds at $300M, $500M, and $1B
  • What lies ahead for the European and American markets
  • The shift from focusing on growth to profitability (and which is more important…)
  • The the return of the series a and the series b, an uptick in consolidations, and shifting goalposts
  • Bridge rounds – are they a necessary evil?

and more!

 

Listen to the full episode, watch the video below and subscribe to the SaaS Revolution Show podcast today.

Watch now, or listen to the audio-only version below:


 

Listen to the audio now:


If you want similar tips and are looking to achieve success all year round, check out the SaaStock Founder Membership:

A private community of ambitious SaaS founders scaling to $10MM ARR. Get a support network of peers, connect with likeminded founders around the globe, and learn proven strategies from industry experts. Apply now to scale up your SaaS.


 

Want to join the pioneers at the forefront of The SaaS revolution? Subscribe to our newsletter today to get exclusive content, receive actionable value-based insights and create your Rocketship SaaS.

Plus – follow us on social! Check out our profiles on , X, , , Instagram, and TikTok.

And if you can’t wait another week for our next podcast, listen to our previous two here:

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Actionable investor insights from SaaStock USA and what founders can expect in May https://prodsens.live/2024/04/05/investor-insights-saastock-usa/?utm_source=rss&utm_medium=rss&utm_campaign=investor-insights-saastock-usa https://prodsens.live/2024/04/05/investor-insights-saastock-usa/#respond Fri, 05 Apr 2024 16:20:34 +0000 https://prodsens.live/2024/04/05/investor-insights-saastock-usa/ actionable-investor-insights-from-saastock-usa-and-what-founders-can-expect-in-may

Finding the right investors and understanding what they want to see from founders and businesses is a struggle…

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Finding the right investors and understanding what they want to see from founders and businesses is a struggle all too familiar for SaaS leaders. 

SaaStock’s events, media, and growing SaaS community break down the barriers between founders and investors to facilitate new opportunities and make forging those relationships easier. We connect founders and investors through dedicated networking and share insights from global investors with our community. 

All of this gives SaaS founders and executives a peek behind the curtain that uncovers:

  • What investors are seeing in the market,
  • How they identify investment opportunities,
  • And how startups can stand out when they seek funding. 

With SaaStock USA fast approaching, we searched the archives for key investor insights from our events last year and look forward to what you can expect from this year’s conference.

1. You need to unlock growth before you can scale

Speaking at SaaStock USA, Tae Hea Nahm, Co-Founder and Managing Director at Storm Ventures, described how companies can unlock high growth by finding what he calls go-to-market (GTM) fit.

In practice, a company with GTM fit has:

  1. Found urgency amongst it’s ICP,
  2. Nailed their go-to-market fit model,
  3. And built a repeatable go-to-market playbook to find and win customers over and over again.

It involves finding your champions and making them the hero of your GTM strategy. One thing to remember is that your champion might not be the decision maker but they will be the one to drive sales and usage going forward.

Watch the full session below:

2. Founder misconceptions about the funding process

Investors are approached by hundreds of companies. One way to make sure you reach the top of the list is to avoid common mistakes made by other founders. 

During a panel session on what matters to investors, Tae Hea Nahm (Co-Founder and Managing Director at Storm Ventures), Cathy Gao (Partner at Sapphire Ventures), and Miguel Fernandez Larrea (Co-Founder and CEO at Capchase) shared common misconceptions that founders have about the funding process and how to avoid them.

Misconception #1: You should fundraise when cash is running low

Capchase CEO Miguel Fernandez Larrea believes that startups should “always be fundraising”. Whether for equity funding, revenue based financing, or other forms of capital. 

Instead though, many founders wait until they’re nearing the end of their runway before starting the process. He explained why this is detrimental and advised that founders look to raise six months before they run out of cash. 

Leaving it beyond that point can impact your valuation, or result in a structured round, with more conditions in the agreement. For debt financing, it’s unlikely you’ll succeed at all because the risk is too high. Or as Miguel says, “it’s equity-like risk for debt-like returns”. 

Misconception #2: Raising huge amounts of money proves your business’ worth 

Sapphire’s Cathy Gao shared that many founders over-index the amount of capital they need to raise per round. She explained that while large sums and round figures look great on a press release, they are a measure of your fundraising capabilities, not how successful your business is.  

Instead, she encourages founders to take a step back and think about what is required for your business to reach its milestones. That means, focusing on what you need to prove out your business model, and go-to-market strategy – rather than the nominal valuation or total amount raised. 

Misconception #3: Assuming everyone in a VC firm thinks the same way

Finding the right investment at the right stage is crucial. Storm Ventures Co-Founder Tae Hea Nahm discussed how founders approach this by looking for the right firm. 

While important, he explained that this approach assumes that everyone within a firm thinks the same way in terms of priorities and metrics. 

This is a mistake that can trip founders up. Comparing himself to his Co-Founder – Tae Hea says that while both have over 20 years experience in early stage B2B software investment, how they approach it is actually very different. 

He recommends that founders look beyond the firm to the individuals within it. Instead of asking whether a firm is right, ask whether an individual investor is philosophically the right fit.

Watch the full panel here. 

3. Tell a story beyond the numbers

How founders can tell a story beyond the numbers is a common theme across investor sessions at our events. This is particularly important for Pre-Seed through Series B where there’s likely to be less historic data to work from. 

Speaking at SaaStock Dublin, investors from Notion VC, Bessemer Venture Partners, PointNine Ventures, and Dawn Capital shed some light on how to do this successfully

Firstly, make sure the data points you share add value to your narrative. Anant Vidur Puri, Partner at Bessemer Venture Partners, provided an example whereby an SMB software company said that it had only lost 1% of customers to date. While true, the company had been running for 18 months, had 3x growth over the last 12 months, and only sold up front annual plans – and so, in reality, less than 20% of customers had actually had a chance to churn. 

Beyond the numbers, investors will be looking for a deep understanding of your ICP and how you can sell to them. This could initially be a smaller, more targeted segment but you’ll be expected to know how you can grow that audience. This might be growing vertically, going deeper into your niche or horizontally and expanding across borders.

Watch the full panel.

Investor insights at SaaStock USA 2024

We’re bringing more investor insights to Austin in May with a jam packed content agenda, workshops, networking opportunities, and social events. 

Hear from investors:

  • How to execute a successful pivot to grow: Creating a new product categoryMary D’onofrio, Partner, Bessemer Venture Partners and Ev Konstevoy, CEO, Teleport.
  • From $0 to a $3B valuation: Unconventional secrets behind Remote’s growth  Christine Esserman, Partner, Accel and Marcelo Lebre, Co-Founder, CEO and President, Remote.
  • How to scale your technical SaaS startup beyond $50M ARR – Casber Wang, Partner, Sapphire Ventures and Kyle Hanslovan, Co-Founder and CEO, Huntress.
  • Lessons from over $50B in exits: What makes a business worth more? Thomas Smale, CEO, FE International.
  • Building successful products in the AI era – SC Moatti, Managing Partner, Might Capital.
  • A comedy of ARRs: How to approach fundraising in the profitability over growth era – Brandon Gleklen, Principal, Battery Ventures.

Check out the full agenda

Network with investors:

From our dedicated networking area and the ability to book meetings ahead of time through our app to workshops, roundtables, and social events – SaaStock is full of opportunities for Pre-Seed to Series C founders to connect with investors. 

We also offer founder and investor matchmaking and the chance for early stage startups to take part in in the global pitch competition, available through our Startup Program

Join us in Austin, May 13-15

Join us and 1500+ SaaS founders, operators, and investors in Austin for all of this and more. 

Tickets are selling fast – get yours now. 

Read more about what’s on:

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Top 3 SaaS challenges in 2024: How SaaStock USA will help you overcome them https://prodsens.live/2024/03/28/overcome-saas-challenges-at-saastock-usa/?utm_source=rss&utm_medium=rss&utm_campaign=overcome-saas-challenges-at-saastock-usa https://prodsens.live/2024/03/28/overcome-saas-challenges-at-saastock-usa/#respond Thu, 28 Mar 2024 12:20:39 +0000 https://prodsens.live/2024/03/28/overcome-saas-challenges-at-saastock-usa/ top-3-saas-challenges-in-2024:-how-saastock-usa-will-help-you-overcome-them

Despite signs that things are on the up for SaaS, it’s still an unpredictable market for companies to…

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top-3-saas-challenges-in-2024:-how-saastock-usa-will-help-you-overcome-them

Despite signs that things are on the up for SaaS, it’s still an unpredictable market for companies to operate in. 

Buying habits are changing, access to capital remains a challenge, there’s more competition, and AI continues to disrupt almost every SaaS vertical. 

With this in mind, we’ve been busy making sure SaaStock USA is set to help founders, executives, and investors navigate this “new normal”. 

Below are three key challenges for SaaS in 2024 and the content and networking opportunities at SaaStock USA that will arm you with the knowledge and connections you need to overcome them.

Let’s get into it.

1. Balancing growth and capital efficiency

Investors still expect high growth from SaaS companies – but you can’t do it at all costs anymore. And so, with capital efficiency top of mind, SaaS leaders are forced to look at more sustainable growth strategies. 

Growth strategies that will set your SaaS on the path to profitability. 

This includes:

  • Using retention and upsell strategies to grow with your existing customers.
  • Reviewing spend and margins to maximize your bottom line. 
  • Understanding how to navigate different stages of growth.

SaaStock USA sessions to help you grow more efficiently: 

  • 5 key moments to drive revenue growth and customer retention 

Xero’s Ashley Grech will discuss how to identify the key moments that really matter for revenue and retention. Sitting across your sales cycle and customer lifecycle, these moments include: first impressions, conversion, establishment, growth (cross-sell and upsell), and when something goes wrong. 

Speaker: Ashley Grech, CRO, Xero

  • You’ve reached PMF, now scale: Insights from a $5M – $100M ARR journey 

Jason Cohen has built four different tech startups to more than $1M ARR. Using insights from his career to date, he’ll discuss how SaaS companies should be navigating the scale phase, unveiling how to keep hitting the next milestone and building on your current success.

Speaker: Jason Cohen, Co-Founder and Chief Innovation Officer, WP Engine

  • Are you really optimizing your operating margins? Strategies to enhance your bottom line 

While the adage of “do more, with less” still rings true, what dials should you be turning to improve your operating margins and boost your bottom line? Ben Murray is joined by Philip Watson to share where your attention should be to optimize your margins.

Speakers: Ben Murray, Founder, The SaaS CFO and Philip Watson, CFO, Paddle

Join these leading speakers and more – check out the agenda and book your tickets now

2. Funding and fundraising options

After a slow 2023, there are signs capital is returning to the market: 

The difference now though is the expectations VCs have on the SaaS companies looking to raise and what founders need to prove to secure investment. While access to capital remains a challenge for growth-stage companies, there’s also a move towards VC funding alternatives, like M&A.

SaaStock USA sessions to help you secure your next investment:

  • A comedy of ARRs: How to approach fundraising in the profitability over growth era

Drawing from his experience in technology investing – and in comedy – Brandon Gleklen reveals how today’s founders can deliver a pitch that stands out, through defining how your team problem-solves, demonstrating an ability to iterate, and showcasing a unique perspective.

Speaker: Brandon Gleklen, Principal,  Battery Ventures

  • Lessons from over $50B in exits – what makes a business worth more? 

FE International’s Thomas Smale offers behind-the-scenes insights into which business models lead to the biggest exit prices, the business types that are most popular with buyers, and how you can build a high-value business poised for a smooth exit.

Speaker: Thomas Smale, CEO, FE International

  • Inside a multimillion acquisition: How Beamer and Userflow joined hands 

A connection made at SaaStock USA 2023, between Satya Ganni and Esben Friis-Jensen, resulted in a deal that saw them join forces to solidify their position as a leading provider in the no-code product engagement market. With bullish sentiment for this space and market growth forecasted to reach $29B by 2030 [Gartner], they’ll share the in and  and outs of the acquisition and why the best is still to come.

Speakers:  Satya Ganni (CEO of Beamer & Userflow) and Esben Friis-Jensen (Co-founder and Chief Growth Officer, Userflow)

Connecting founders and investors 

A huge part of securing funding is finding the right investors for you, and your stage of business. At SaaStock we facilitate networking between founders and investors and provide space for new opportunities to be found. 

Pre-Seed through Series C Founders can meet investors through our dedicated networking area or book meetings ahead of time through our event app. Early stage startups can also join our Startup Program and get their company in front of investors in our pitch competition.

Find out more about investor networking at SaaStock USA.

2. Staying ahead of competition

There are at least 30,000 SaaS companies globally. A number that’s growing and likely already much greater when you factor in AI SaaS startups. 

Competition is more fierce, companies HQ’d in different continents can sell locally to you, and AI is leading the way for product innovation.

Understanding where you fit in the market, how you differentiate yourself against the competition, and also how to develop your product to stay ahead of the pack is more crucial than ever.

SaaStock USA sessions to help you rise to the top

  • How to Build a Game-Changing Sales Pitch

Author of the best-selling book, “Obviously Awesome,” April Dunford delves into the art of positioning and the future sales classic, “Sales Pitch”. In this session, she’ll be sharing her sales pitch secrets to help you craft a sales narrative that highlights your product’s competitive strengths and wins more deals.

Speaker: April Dunford, Founder and CEO, Ambient Strategy

  • 3 hidden AI levers that your competitors aren’t pulling and why you should

Generative AI was the generational meteorite that took 2023 by storm. But are we really pulling all the efficiency levers that AI has to offer in 2024? Investor-turned-founder, Michelle Valentine, will share her superb insights on the deeper (and less-obvious) ways that AI agents can transform the way you run your company.

Speaker: Michelle Valentine, Co-founder & CEO, Anrok

Building relationships and spotlighting SaaS disruptors

SaaStock USA is here to facilitate connections between you and your peers, prospects, and customers – and give you the chance to showcase your SaaS as a leader in the space.

We do this through content sessions, workshops, and roundtables, dedicated time and space for networking, and initiatives designed to showcase standout companies. Some examples include:

  • SaaS.City: A series of topic-specific bootcamps for SaaS CEOs, sales, revenue, and marketing leaders. A real opportunity for practical learning and sharing experiences with your peers. 
  • The SaaS Revolutionaries: Awards celebrating game-changing companies across six categories including fastest growing and best AI startup.
  • The global pitch competition: A chance for early-stage startups  to showcase their product in front of investors and conference attendees (and be in with a chance of winning a $200M dollar investment).

Join us in Austin for SaaStock USA

We’re so excited to bring all of this and more to the Palmer Events Center in Austin on 13-15 May.

It’s your opportunity to meet SaaS pioneers, learn from the best, network with potential customers, meet with potential investors – and ultimately have a great time. 

What are you waiting for? Book your tickets now.

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VC fundraising in 2024: What’s changed and what SaaS founders should focus on https://prodsens.live/2024/03/18/saas-vc-fundraising/?utm_source=rss&utm_medium=rss&utm_campaign=saas-vc-fundraising https://prodsens.live/2024/03/18/saas-vc-fundraising/#respond Mon, 18 Mar 2024 15:25:28 +0000 https://prodsens.live/2024/03/18/saas-vc-fundraising/ vc-fundraising-in-2024:-what’s-changed-and-what-saas-founders-should-focus-on

In the wake of a turbulent 2023, how is SaaS VC fundraising shaping up in 2024? Last year…

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vc-fundraising-in-2024:-what’s-changed-and-what-saas-founders-should-focus-on

In the wake of a turbulent 2023, how is SaaS VC fundraising shaping up in 2024?

Last year saw arguably the first SaaS recession but early signs look like, this year, we’re moving into calmer waters. 

It’s a cautious optimism but it looks like those December prediction posts were right and capital will return to the market – the companies that secure it, however, might look a bit different to before. 

In this post, we’ll discuss what VCs think about the current landscape, what’s changed compared to previous periods, and what SaaS founders can expect from the VC fundraising process in the current climate.

2024: The story so far

Growth rates for subscription businesses processing up to $100M might have dropped to 14% in Q4 ’23 but all is not lost. The findings of this Maxio report actually suggest that 2023’s slower growth rates mark a return to ‘normal’ levels. That is, more sustainable growth rates seen prior to pandemic.

Of course, it wasn’t just growth that slowed in 2023, inflation and high interest rates made access to capital more challenging too. Now both are settling, the impact on SaaS funding remains to be seen but investors are cautiously optimistic. 

Jean-Laurent Pelissier, MD and Head of Enterprise Software at HSBC Innovation Banking, sees resilience in the market and hopes that capital will come back over the next twelve months. 

He explained that Pre-Seed through Series A businesses are the most resilient right now because they’re less likely to have been impacted by previously inflated valuations and aren’t reliant on exit through IPO.

Hear more from Jean-Laurent on his episode of the SaaS Revolution Show.

Once you move into Series B and beyond, fewer deals are being done and they’re taking longer. Creandum found that: 

  • Funding into growth rounds is down roughly 80%.
  • Valuations for growth rounds are down about 60%. 

In the spirit of SaaS though there, of course, are outliers:

In March, Amsterdam based hotel property management software Mews raised $101.3M at $1.1B valuation. (Read more about the journey to unicorn status from CEO Matthijs Welle’s appearance on the SaaS Revolution Show).

Elsewhere, Paris based accounting software Pennylane raised a €40M Series C at a €1B valuation

(Not to mention AI SaaS – an outlier in itself – but that’s a whole other post.) 

For the most part though, it’s an early stage market.

So, what’s changed? And how can growth stage companies join these outliers? 

VC expectations in 2024

Speaking on the SaaS Revolution Show, Carl Fritjofsson, General Partner at Creandum, shed some light on this. Like Jean-Laurent, he identified 2021 and 2022 as the real anomaly. A time when there was arguably too much money invested in the private market, resulting in inflated valuations and somewhat risky investments. 

Now, in the aftermath, the bar for due diligence has become much higher than we’re used to. While not a bad thing, it’s had a very real impact on what founders can expect when they come to pitch:

Company maturity for specific rounds has changed 

  • Seed rounds are now companies doing serious revenue. Creandum is seeing companies with at least $0.5-1M ARR.
  • Series A is now rare for companies doing under $1M ARR. It’s usually $2M but can be up to $6M. 
  • Series B rounds are with companies approaching $10M ARR, rather than $4-5M. 

This, in turn, also has an impact on the fundraising processes that founders can expect to go through at each stage. While the due diligence process and expectations from investors adjust as you scale, one thing remains consistent: it’s difficult and deals aren’t done overnight.  

Last year, Trumpet Co-Founder Nick Telson-Sillett shared this honest account of the process to secure the company’s $1.6M Pre-Seed funding. It included: 

  • 97 first meetings
  • 80 second meetings
  • 7 weeks from cold outreach to commits
  • 3-5 weeks from signing term sheet to completion

Growth expectations remain high

Despite market conditions, Carl Fritjofsson went on to explain that growth expectations for SaaS businesses are still high. 

The benchmarks he discussed were at least 2x YOY for series A and 4-5x YOY for bigger rounds.

All eyes on capital efficiency

Expectations on growth rate haven’t changed but expectations on how you grow certainly have. It’s almost a cliche but SaaS companies can’t grow at all costs any more. 

Instead, all eyes are on capital efficiency as cash burn becomes a core part of any board meeting. In particular, burn multiple, which accounts for dollars burnt in order to create a dollar back in revenue. For Series A this should be 1.5 to 3.  For Series B it’s 1 to 2.

So, the ask from VCs then is to “grow at the same rate but be more efficient while you do it”. When you look at it through this lens, it’s easy to see why fewer companies get backing. At this bar, they aren’t venture backable.

How to balance fast growth and capital efficiency

Many of the strategies that powered SaaS growth in 2021 won’t cut it in the boardroom three years on.

You can’t rush prospects over the line, discount at all costs, or make promises about product features before checking in with the product team. Growth needs to be more considered and, most importantly, more sustainable. 

Here are some steps you can take towards efficient growth:

Targeted acquisition

Of course, acquiring new customers will always be important. But in this market, rather than casting the net wide and seeing what comes in, take care to really understand your ICP, their problems, and where they are looking for solutions. 

This way, you can run sales and marketing campaigns that target the right people, on channels where they are already looking for a solution like yours. 

Targeting the right type of customer more effectively will help to keep customer acquisition cost (CAC) down. It’ll also mean they’re likely to get value from the product more quickly and stay with you for longer, keeping your CAC to lifetime value (LTV) ratio nice and healthy.

Which brings us on to customer retention…

A focus on retention

Retention-driven growth should be top of mind for SaaS leaders looking to get ahead. Having more consistent recurring revenue and reducing reliance on net new revenue is a solid step towards sustainability. 

Focus on increasing average revenue per user (ARPU) by streamlining your customer experience and reducing the time it takes to get value from your product.

Of course, this is heavily reliant on having product market fit and understanding your customers but there are operational tactics too: 

  • Reduce friction in your onboarding flows to get customers up and running quickly. 
  • Implement cancellation flows and win back campaigns that counter voluntary churn. 
  • Review payments and billing processes, close any leaks, and reduce involuntary churn.

Strategic upsells

Focus on customer success and look for opportunities to grow with your existing customers. For example: 

  • Review your product and pricing packages, identify upsell and cross sell opportunities
  • Look at your customer base and target those most likely to convert (e.g. those reaching their package limits each month).

Operational efficiency

Look internally at your business’ operational efficiency. Review where your cash is being spent and find places where you can keep internal costs down.  

Here are some places to start: 

  • Review and consolidate app usage and subscriptions across the company.
  • Review what tasks can be automated, freeing your team up to focus on growth. 
  • Review expense policies and benefits packages.
  • Scale back hiring and focus on critical roles that support growth.

Getting back to basics

In fact, this year poses an opportunity for SaaS leaders. It’s a chance to adapt to something more sustainable, focus on core SaaS metrics, and get your business trending towards profitability.

The metrics that matter most right now? 

  • Monthly and Annual recurring revenue (MRR/ARR): The amount of predictable recurring revenue measured on a monthly or annual basis.
  • Burn multiple: No. of dollars burnt in order to create a dollar back in revenue.
  • CAC:LTV ratio: The total value of a customer during their time with you compared to the cost you incurred to acquire them.
  • Customer retention rate and churn: The percentage of customers that stay with you or leave during a given period of time.
  • Net dollar retention (NDR): The revenue you grow, keep, or lose with your existing customer base.
  • Net promoter score (NPS) and customer satisfaction (CSAT) scores: NPS to tell you how likely your customers are to recommend you. Customer satisfaction scores for general feedback about their experience with you.

Meet your next VC investor at SaaStock

Of course, part of securing investment is meeting the right investors, and building relationships with them.

SaaStock events connect Pre-Seed through Series C startups with global VCs and angel investors. Whether through one of our dedicated networking opportunities, an accidental meeting on the show floor, or via our global pitch competition, we aim to break down the barriers between founders and investors and provide a space for new opportunities. 

Find out more about who’ll be joining us at SaaStock USA.

Our SaaStock Local events also provide networking and knowledge sharing opportunities for founders and investors. Coming up in Bucharest on 4 April, leaders and angel investors from Startup Wise Guys, Younium, and Belkins will discuss how to successfully fundraise in the SaaS world, including: lessons from both sides of the process and the numbers you need to have in order.

Find out more and book tickets

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From a Founder’s Perspective: What is Out There if You Don’t Want to Dilute? https://prodsens.live/2024/03/14/from-a-founders-perspective-what-is-out-there-if-you-dont-want-to-dilute/?utm_source=rss&utm_medium=rss&utm_campaign=from-a-founders-perspective-what-is-out-there-if-you-dont-want-to-dilute https://prodsens.live/2024/03/14/from-a-founders-perspective-what-is-out-there-if-you-dont-want-to-dilute/#respond Thu, 14 Mar 2024 10:21:10 +0000 https://prodsens.live/2024/03/14/from-a-founders-perspective-what-is-out-there-if-you-dont-want-to-dilute/ from-a-founder’s-perspective:-what-is-out-there-if-you-don’t-want-to-dilute?

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Denis Mosolov, Managing…

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from-a-founder’s-perspective:-what-is-out-there-if-you-don’t-want-to-dilute?

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Denis Mosolov, Managing Partner Venture Debt at Flashpoint, as he discusses what’s out there (from a founder’s perspective) if you don’t want to dilute.

 

“It’s a big challenge for us, because you know if your company’s really going to take-off and show growth levels that are exciting for the VC community, you do need to invest and you do need to know how to raise capital. That’s a skill that the founders need to have and so it is a red flag for me if something is like 100% bootstrapped, because there’s a big question mark – ‘are you guys actually able to raise capital?’.

 

Denis shares:

  • Humble beginnings, half billion under management, and three product lines later: Flashpoint’s founding story
  • The current state of venture debt: from ‘flight to brand’ to extension rounds
  • Different sources of capital and their requirements – asset backed debt, convertibles, government subsidies, revenue-based financing, venture debt and more
  • When a founder would want to borrow against inventory vs seek out flexible non-dilutive capital, to non-dilutive expensive ‘royalties’
  • His advice to ‘hustle, scramble, make quick decisions, and be proactive’

and more!

 

Listen to the full episode, watch the video below and subscribe to the SaaS Revolution Show podcast today.

Watch now, or listen to the audio-only version below:


 

Listen to the audio now:


If you want similar tips and are looking to achieve success all year round, check out the SaaStock Founder Membership:

A private community of ambitious SaaS founders scaling to $10MM ARR. Get a support network of peers, connect with likeminded founders around the globe, and learn proven strategies from industry experts. Apply now to scale up your SaaS.


 

Want to join the pioneers at the forefront of The SaaS revolution? Subscribe to our newsletter today to get exclusive content, receive actionable value-based insights and create your Rocketship SaaS.

Plus – follow us on social! Check out our profiles on , X, , , Instagram, and TikTok.

And if you can’t wait another week for our next podcast, listen to our previous two here:

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Lessons in Building Mews to Unicorn Status & $100M ARR https://prodsens.live/2024/03/07/lessons-in-building-mews-to-unicorn-status-100m-arr/?utm_source=rss&utm_medium=rss&utm_campaign=lessons-in-building-mews-to-unicorn-status-100m-arr https://prodsens.live/2024/03/07/lessons-in-building-mews-to-unicorn-status-100m-arr/#respond Thu, 07 Mar 2024 18:20:39 +0000 https://prodsens.live/2024/03/07/lessons-in-building-mews-to-unicorn-status-100m-arr/ lessons-in-building-mews-to-unicorn-status-&-$100m-arr

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Matthijs Welle, CEO…

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lessons-in-building-mews-to-unicorn-status-&-$100m-arr

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Matthijs Welle, CEO at Mews, who shares his lessons building Mews to unicorn status and $100M ARR.

 

“Recognise when we’ve got a challenge and address it. And I surround myself with phenomenal people, I’m not afraid of hiring people that are smarter than me around me, because I’m not always the smartest person. I have more context than anyone else, but these people lift me, and I think the best managers do that – they just find phenomenal talent and then trust that they are not going to be fighting, but showing up for the job and lifting you for the manager that you are.

 

Matthijs shares:

  • Mews’ founding story – from frustrations with a big marble block to building the next generation infrastructure system for hotels
  • The company’s growth path (including 40 new hires MoM!)
  • From eight acquisitions to receiving $110M on top of raising a round – the pivotal moments speed and drive overlapped with opportunity
  • The ONE role that helped get them to the $10M ARR mark
  • Why someone giving them sh*t was a ‘wake up call’ to professionalise the business
  • When to pull away from entrepreneurial tendencies (including the micromanagement trap…)

plus the best hotel he’s *ever* stayed in and how much they had to offer a Maine restaurant for the Mews.com domain

 

Listen to the full episode, watch the video below and subscribe to the SaaS Revolution Show podcast today.

Watch now, or listen to the audio-only version below:


 

Listen to the audio now:


If you want similar tips and are looking to achieve success all year round, check out the SaaStock Founder Membership:

A private community of ambitious SaaS founders scaling to $10MM ARR. Get a support network of peers, connect with likeminded founders around the globe, and learn proven strategies from industry experts. Apply now to scale up your SaaS.


 

Want to join the pioneers at the forefront of The SaaS revolution? Subscribe to our newsletter today to get exclusive content, receive actionable value-based insights and create your Rocketship SaaS.

Plus – follow us on social! Check out our profiles on , X, , , Instagram, and TikTok.

And if you can’t wait another week for our next podcast, listen to our previous two here:

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Playing to Win! Lessons in Building Pendo Well Past $100M ARR https://prodsens.live/2024/02/22/playing-to-win-lessons-in-building-pendo-well-past-100m-arr/?utm_source=rss&utm_medium=rss&utm_campaign=playing-to-win-lessons-in-building-pendo-well-past-100m-arr https://prodsens.live/2024/02/22/playing-to-win-lessons-in-building-pendo-well-past-100m-arr/#respond Thu, 22 Feb 2024 00:20:46 +0000 https://prodsens.live/2024/02/22/playing-to-win-lessons-in-building-pendo-well-past-100m-arr/ playing-to-win!-lessons-in-building-pendo-well-past-$100m-arr

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Todd Olson, founder…

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playing-to-win!-lessons-in-building-pendo-well-past-$100m-arr

In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Todd Olson, founder & CEO of Pendo, who shares his lessons in building Pendo well past $100M ARR.

 

“I would say we’re more aggressive than the average company. First off, there’s rules. We are not a custom software shop, I do not build things for one customer. However, if there’s something on our roadmap anyway and it’s, I don’t know, let’s say, 12 months from now, and this prospect needs it now or sooner, I am willing to rearrange things. As I tell my prod teams “don’t get married to your roadmap”, married means you have emotional attachment to it and that you can’t move things around, because what better proxy for prioritisation than speaking with the customer and them saying “I will buy now if you have it now”.

 

Todd shares:

  • Pendo’s founding story
  • The greatest signal of prioritisation a business can have
  • His philosophy of ‘hiring for pain’
  • The impact active coaching had on his team
  • Their two year journey from $1M-$10M ARR: tripling growth rates and a high percentage of inbound demand
  • The three strategic anchors Pendo uses to make decisions, incl. being ‘bold by choice’
  • How they’ve dealt with company growth often outpacing human and professional growth

and more!

 

Listen to the full episode, watch the video below and subscribe to the SaaS Revolution Show podcast today.

Watch now, or listen to the audio-only version below:


 

Listen to the audio now:


If you want similar tips and are looking to achieve success all year round, check out the SaaStock Founder Membership:

A private community of ambitious SaaS founders scaling to $10MM ARR. Get a support network of peers, connect with likeminded founders around the globe, and learn proven strategies from industry experts. Apply now to scale up your SaaS.


 

Want to join the pioneers at the forefront of The SaaS revolution? Subscribe to our newsletter today to get exclusive content, receive actionable value-based insights and create your Rocketship SaaS.

Plus – follow us on social! Check out our profiles on , X, , , Instagram, and TikTok.

And if you can’t wait another week for our next podcast, listen to our previous two here:

The post Playing to Win! Lessons in Building Pendo Well Past $100M ARR appeared first on ProdSens.live.

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