SaaS startups with $10k to $100k annual contract values usually fail
Jason Pressman · 20VC: Why It Is BS That You Never Regret Paying A High Price To Get Into A Good Company, Why There Are Only 2 Price Points That Work in SaaS and Why eSports Will Be Bigger Than Traditional Sports in 5 Years Time with Jason Pressman @ Shasta Ventures · Jul 19, 2017 · at 16:01
Jason Pressman, Managing Director at Shasta Ventures, discusses enterprise SaaS go-to-market strategies and unit economics.
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“When you get caught in the middle, Somewhere between the 10 and a hundred K, you almost always end up on this slippery slope where your gross margins suck and you're upside down on your customer acquisition costs and the ultimate SAS model just doesn't work. And I've challenged entrepreneurs for years to, because a lot of times we'll see businesses where people say, oh, we're selling at 30 K or 40 K ACV. And I challenge them and I say, tell me how that price point works. And it's very unusual that a company actually has a price point there that works. Again, there are some exceptions, but generally speaking, directionally, those are the two price points.”
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