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
Founded 2011 in Berlin
Investing €100,000-1,000,000
Raised €45M
Team of 7
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
s
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I. What’s SaaS?
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I. What’s SaaS?
aaSSoftware as a Service
No installationContinuos updates
Accessible from everywhere
Why VCs like SaaS companies
Recurring revenues
High margins
Global scale from day one
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%’
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
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
Monthly Recurring Revenue(MRR)
LTV
CAC
Churn & Retention: Cohort Analysis
Yours truly: ‘Cohort Analysis Q&A’
negative churn
Extension MRR > MRR churn
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III.
Best Practices
Referrals are a great ‘growth hack’*
* if you have a suitable (freemium) model
Get to WOW! fast*
* a great on-boarding can increase conversions significantly
???
You’re too cheap!*
* if you provide real value " & haven’t raised prices since you launched
???
Price increase
Valuable content = trust
One time effort, long time effect
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
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
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