SaaS 101: The Basics of Cloud Software
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Transcript of SaaS 101: The Basics of Cloud Software
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SaaS 101: The Basics of Cloud Software
HEUREKA, May 6. 2014
Nicolas Wittenborn, Point Nine Capital
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Founded 2011 in Berlin
Investing €100,000-1,000,000
Raised €45M
Team of 7
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Who’s Point Nine
Vancouver
Washington D.C
Auckland
Edmonton
New York
San Francisco
BerlinRiga
Point Nine ’s SaaS
Paris
Barcelona
Warsaw
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III.
Best Practices
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II. Important SaaS Metric
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I. What’s SaaS?
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I. What’s SaaS?
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aaSSoftware as a Service
No installationContinuos updates
Accessible from everywhere
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Why VCs like SaaS companies
Recurring revenues
High margins
Global scale from day one
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The SaaS market is quite ‘frothy’
which might change soon**
[EV / Forward Revenue] Multiple of public SaaS companies*
* CapIQ Analysis by @bsesser !**Jason Lemkin: ’Unfortunately, SaaS Start-Up Valuations Are About To Fall by 50%’
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Global SaaS Market SizeROW"21%
France"3%
Canada"4%
Germany"6%
UK"6%
US"60%
Global SaaS Market Volume*
shows strong US bias
* Siemer's SaaS Industry Report 2013
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Founded 2007 in Copenhagen
Move to US HQ in 2009
40,000+ customers
Europe still produces great SaaS companies
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II. Important SaaS Metric
s
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Monthly Recurring Revenue(MRR)
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LTV
CAC
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Churn & Retention: Cohort Analysis
Yours truly: ‘Cohort Analysis Q&A’
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negative churn
Extension MRR > MRR churn
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!
III.
Best Practices
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Referrals are a great ‘growth hack’*
* if you have a suitable (freemium) model
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Get to WOW! fast*
* a great on-boarding can increase conversions significantly
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???
You’re too cheap!*
* if you provide real value " & haven’t raised prices since you launched
???
Price increase
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Valuable content = trust
One time effort, long time effect
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There is no silver bullet
Just the Long, Slow, SaaS Ramp of Death*
* Gail Goodman: How to negotiate the long, Slow, SaaS Ramp of Death
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Ressources•Blogs:
• David Skok http://www.forentrepreneurs.com/ • Tom Tunguz http://tomtunguz.com/ • Christoph Janz http://christophjanz.blogspot.de/ • Jason Lemkin http://saastr.com/
•Slides: • 9 Worst Practices in SaaS Metrics: http://www.slideshare.net/PointNineCap/9-worst-practices-insaas-metrics • Siemer SaaS Industry Report 2013: http://www.slideshare.net/SiemerAssoc/sa-saa-s-industry-report-summer-2013-25007137?ref=http://www.siemer.com/research/summer-2013-saas-industry-report/
•More: • Quora SaaS topics: http://www.quora.com/Software-as-a-Service-SaaS • Long, slow, SaaS Ramp of Death: http://pawel.ch/post/71104054756/the-long-slow-saas-ramp-of-death-i-have-just • Cohort Analysis Q&A: http://heyni.co/post/79862265851/cohort-analysis-a-practical-q-a • ‘Unfortunately SaaS Startup Valuations about to fall by 50%’: http://saastr.com/2014/04/29/unfortunately-saas-start-up-valuations-are-about-to-fall-by-50/
• EV / Forward revs for enterprise SaaS companies: https://twitter.com/bsesser/status/453877615934189569/photo/1 • The Correction in SaaS Company valuations: http://tomtunguz.com/the-correction-in-saas-company-valuations/ x