2014 Pacific Crest SaaS Survey – Part 1
For the third year in a row, we worked together with Pacific Crest
Securities, an investment banking firm with a specific focus on SaaS, to
survey 306 SaaS companies.
This represents nearly double the # of respondents from last year, giving us
deeper benchmarking data and insights to share on the growth and operations
of the companies in this space.
We also welcome this year the participation of OpenView, an expansion stage
venture capital firm specializing in B2B Software, who brought additional
I want to extend my personal thanks to the many readers of this blog who
participated in the survey. My thanks also go out to David Spitz and his team
at Pacific Crest Securities (@dspitz and @PacCrestSec, respectively on
Twitter) for their hard work on the survey. Part 1 of the results of the
survey, which focuses on growt... (more)
In the many thousands of articles advising entrepreneurs on what they have to
focus on to build successful startups, much has been written about three key
factors: team, product and market, with particular focus on the importance of
product/market fit. Failure to get product/market fit right is very likely
the number 1 cause of startup failure. However in all these articles, I have
not seen any discussion about what I believe is the second biggest cause of
startup failure: the cost of acquiring customers turns out to be higher than
expected, and exceeds the ability to monetize th... (more)
Portals, e-commerce sites, B2B commerce and so on...we're witnessing
unprecedented demand for e-business solutions of every stripe as companies
rush to put their businesses on the Web. With Y2K now out of the way, this
has become the top IT priority.
In the past many of these solutions have been built on top of IRM (Internet
Relationship Management) products such as Vignette and BroadVision whose
primary specialization has been content management and personalization. For
early Web sites, mostly serving up static content, this was sufficient. But
once the basic site is up and run... (more)
This article looks at the high level goals of a SaaS business and drills down
layer by layer to expose the key metrics that will help drive success.
Metrics for metric’s sake are not very useful. Instead the goal is to
provide a detailed look at what management must focus on to drive a
successful SaaS business. For each metric, we will also look at what is
Before going any further, I would like to thank the management team at
HubSpot, and Gail Goodman of Constant Contact, who sits on the HubSpot board.
A huge part of the material that I write about below comes my exp... (more)
This article describes in detail how to use on-line survey tools to validate
your key startup assumptions, and gain actionable insights into topics such
as pricing, target demographics, messaging, etc.
By now pretty much every entrepreneur knows the basics of Lean Startup
methodology: start by searching for product/market fit. Get out of the
building and talk to customers. Run a series of experiments to validate your
ideas. Above all else, validate your thinking as early as possible: don’t
spend millions of dollars building something before you have tested the ideas ... (more)