tag:blogger.com,1999:blog-18867375.post153157982266950254..comments2023-05-21T13:20:47.722+02:00Comments on The Angel VC: Hyper-growth in SaaSChristoph Janzhttp://www.blogger.com/profile/07905463949262014311noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-18867375.post-9912965385607235582015-04-06T17:27:19.013+02:002015-04-06T17:27:19.013+02:00hello I'm shtia from Xcopy.co
We allow any Mo...hello I'm shtia from Xcopy.co <br />We allow any Mobile apps or Software Desktop or Web app - To Run as saas model price Come and Start Try for Free http://xcopy.co/Hussein shtiahttp://xcopy.co/noreply@blogger.comtag:blogger.com,1999:blog-18867375.post-53447404019168485652015-04-01T18:36:01.433+02:002015-04-01T18:36:01.433+02:00There's a couple of things going on here that ...There's a couple of things going on here that has lead to the latter companies, Slack in particular being able to achieve the growth that they have. Their product is great, they nail nearly everything, no doubt. And the market is much more conditioned to buying in this manner now. When Salesforce, and even Zendesk were first selling their product monthly subscription was still pretty new, particularly in the enterprise.<br /><br />Slack have done a great job of their freemium model, take this for example<br />https://twitter.com/stewart/status/484457362661462016<br /><br /><br /><br />I think you should also consider capital efficiency and the difference between vertical and horizontal solutions. Veeva are the standouts in both of those attributes and while their revenue ramp is not quite Slack, they took on very little pre-IPO capital and have ACVs close to $1m. An envious position indeed.<br /><br /><br />Anyway, just some other things to consider.Stuart McLeodhttp://stuartmcleod.menoreply@blogger.comtag:blogger.com,1999:blog-18867375.post-88258832496677229972015-04-01T12:59:55.688+02:002015-04-01T12:59:55.688+02:00Good points, Marcin.
On competition in horizont...Good points, Marcin. <br /><br /><br />On competition in horizontal / vertical segments: I believe Slack and Zenefits proof that you can still provide a better experience in supposedly 'dominated' markets, as they have achieved this growth with plenty of IM and HR solutions in the market already.Nicolas Wittenbornhttp://www.heyni.conoreply@blogger.comtag:blogger.com,1999:blog-18867375.post-46301553613473805892015-04-01T10:53:49.689+02:002015-04-01T10:53:49.689+02:00Great post Nicolas. I think that as Kenny already ...Great post Nicolas. I think that as Kenny already mentined - one key "insight" is missing in the analysis. Where does the revenue come from? As you wrote at the end of your post - companies used as examples are focusing on broad, horizontal markets. This means that their products can be used across the board by small companies as well as really large organizations. What would be really interesting to see is how their revenues are split among their customers.<br /><br /><br />I would argue that most of the ARR is coming from big fat contracts to very large companies. Christoph had a great post on different "roads" to $100MM in ARR. If your product is offered in a freemium model, you can have thousands of users/companies using the free version but only few big customers bringing in the cash. This would explain the large army of sales people needed to close deals. It would be very hard to rake in MMs in ARR purely from online sales in such a short period of time.<br /><br /><br />My second argument would be that this economic is even worse in vertical SaaS plays.<br /><br /><br />What I'm seing today is that there is a progressing fragmentation of the software market. With many horizontal or even vertical segments already heavilly occupied with competition, new entrants tend to go for the smaller and smaller niche. Where the growth isn't as fast and as big.Marcin Szelaghttp://www.innovationnest.co/noreply@blogger.comtag:blogger.com,1999:blog-18867375.post-73932111428908633502015-04-01T07:26:21.447+02:002015-04-01T07:26:21.447+02:00Fascinating post. Both the high growth companies y...Fascinating post. Both the high growth companies you mention are making money by targeting large enterprises (Slack is free unless you are very big). There is a huge growth in startups with products aimed at SMEs in other words low cost subscription model. Can we see these breaking through to high growth?Kenny Fraserhttp://www.sunstonecommunication.comnoreply@blogger.com