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)
“If you cannot measure it, you cannot improve it” – Lord Kelvin
This article is a comprehensive and detailed look at the key metrics that are
needed to understand and optimize a SaaS business. It is a completely updated
rewrite of an older post. For this version, I have co-opted two real
experts in the field: Ron Gill, (CFO, NetSuite), and Brad Coffey (VP of
Strategy, HubSpot), to add expertise, color and commentary from the viewpoint
of a public and private SaaS company. My sincere thanks to both of them for
their time and input.
SaaS/subscription businesses are more complex th... (more)
The application server category is one of the more confusing markets to
understand. In addition, the market changed rapidly during 1998, with a
number of companies being acquired. This article aims to clarify the
Software: A History of Consolidating Services on New Platforms
Looking back at the major shifts that have taken place in the software
industry, a trend emerges that is a helpful indicator of what is likely to
happen in the evolution of the application server market. As new platforms
emerge, there are generally a number of players providing point products that ... (more)
As a serial entrepreneur, I learned a lot of lessons from things that
didn’t work. These lessons later on shaped my ideas on what would be needed
to build a successful startup company. When I became a VC, I realized that
these same lessons could be applied to helping evaluate the many businesses
that I was getting to see. Whilst the following criteria are by no means a
guarantee of success, or the only criteria that you should think about, I do
believe they can be very helpful.
So in no particular order, here is a list of six questions that I learned to
ask to validate my own st... (more)
How SolidWorks grew to $400m a year in revenues by helping their VARs become
world class business leaders.
SolidWorks was started back in 1993 with the vision of bringing solid
modeling for mechanical design to the masses. Before SolidWorks entered the
market, solid modeling was only available from PTC at $20,000 per seat, on
expensive Unix workstations. Jon Hirschtick, the founder, set out to change
all of that by offering a fully featured product at a fraction of the price.
He also decided to use a reseller model to get the widest distribution at the
lowest cost. This combinat... (more)