SaaS Company

“In companies that are growing at 20% and then suddenly slow down to eight or nine percent growth rate, if you've overpaid, it's kind of like overpaying for a real estate transaction. There's nothing you can do. There's no accelerant. There's no magic that's go…”

“Most of the time you're going to need to be at like 10 or maybe even 15 or 20 to be considered a true platform.”

“If you can't cross sell the new AI product to existing customers who are trying to do the same thing just with an older technology, then the cross sell acquisition and cross sell story doesn't work. This is as good as it's going to get if you're an old school …”

“And look, the reality is, as I've said, not every SaaS company is going to thrive through the next decade, right? Just like a bunch didn't make it to the cloud. A bunch didn't make it, you know, from, I don't know, Windows to the internet era or whatever, whic…”

“This is why it's so hard to run a SaaS company for like more than, I don't know, 10 years. Like it just gets, the markets shift and especially a ten-year-old SaaS company is a lot of legacy code and you start moving slower and you can't Hit that momentum”

“If you're a SaaS company, anywhere from 60 to 80% of your cost is people.”

“I'm not so read, well read on the public market. It would be a SaaS company. It would be like a SaaS company that has a per seat pricing where those, their ICP is going to be replaced by AI SaaS that just replaces the employees. So the seat, the number of seat…”

“You know, I, I'm sad to admit that I'm invested in a SaaS business that is at seven million in ARR. And valued at 1.3 billion.”

“You can't run, I say can't in quotes, you can't run a million dollar, two million dollar air or SaaS company with just you. At some point you have to let some stuff go.”

“The approach is where it's like, build an audience. Yeah, great. That's fun. But it's not, not for your SaaS company. Build your network, not your audience.”

“It'll take a couple of years for us to get to that place. But in that world, there is no room for five hundred million dollars into a SaaS company.”

“Of the last 17 investments we made at Aleph, one was a SaaS company.”

“What you want to avoid the situation where you look at your customer base and basically you got a 120 customers and there are a 120 different price plans because that creates like a lot of no predictability in terms of what happens when I change pricing.”

“And like Amex is like, it does not know how to build software. It is an incredible company with an incredible brand and an incredible card and merchant product. But they're a far cry away from being a SaaS company.”

“The average SaaS company that's public is down 75%.”

“Private equity firms will buy any SaaS company with high NRR that are break even north of twenty million.”

“On average, it takes a SaaS company, 2.5 years, two years and eight months to get to a million in recurring revenue, and only four percent of startups get there.”

“You don't have to be lucky to get rich. You don't have to be lucky to build an audience. You don't have to be lucky to build a SaaS company to 10 K a month that can change your life. You don't have to be lucky to build an incredible network. You don't have to …”

“So at Paddle, for instance, we were selling to every SaaS company. We've stopped doing that. We are selling to only a very small subsection of the market right now, and we're basically saying no to everybody else.”

“That's the best clue you can look in a SaaS company to Do they have the ability to drive net dollar attention above one 50 is how many customers are paying more than a million bucks a year.”

“The average SaaS company is one of 200 B to B apps deployed in their org.”

“When you've lost 80% of your value and you're only growing 15 to 20%, it's going to take you a decade to grow back into your old valuation.”

“Greg, I say one day, I think very soon there's going to be someone that takes a company public with less than 10 FTEs, a SaaS company.”

“Most SaaS companies will have roughly, like, assuming there's nothing weird, right? Like, you don't have a big component of, like, you know professional services, et cetera. Like, assuming all that, you're, you know, a good, healthy SaaS company should be runn…”

“Like, if you go to sell a SaaS company and you're solely built on top of a platform, you sell for a lower multiple than if you were on your own.”

“There is no successful SaaS company that doesn't have good pricing. Like, it's completely impossible for you to succeed by whatever metric you have if your pricing isn't more or less right.”

“We know based on publicly available data that that at IPO, that the average sort of SaaS company at IPO has about a thousand employees and about a hundred million of ARR. So that ends up being about a 100,000 dollars of ARR per employee, and we can kind of wor…”

“I think a lot of folks who get into building their own company, whether it's a SaaS company, whether it's info products, whatever they're doing, you think, well, I can get away with stuff. I can get away with something here and I'm going to have a short term m…”

“I think part of it also is a SaaS company is just fairly stable in the sense that nothing really goes that wrong, really, for us.”

“So we're a company that believes net retention is really important to a SaaS company, but I'm a CEO that believes the focus of a SaaS company should be gross retention, not net, and that that's an even more upside.”

“So if you're an early stage SaaS company, you can't really hide if you're growing fast. People can check your LinkedIn headcount, see how fast you're hiring on the website, what type of people.”

“Less than ten million of revenue. And this would be my insight for you. There isn't a market to go to. You, people come to us and say, hey, can you raise us capital, right? Can you take us to the market, to the capital markets? Capital markets are for, you hav…”

“Absolutely no IP assignment rights, and these are ones that are important, guys, right? And because large enterprise companies will be really sneaky about that and try to stick that in there, i.e., you build a feature for them, they own it, or it can make an a…”

“The trap that companies will fall into is, ah, that you've got the CEO with some vision of, like, here's this customer problem, and I'm gonna build this product. But they've never actually been a product person, and breaking down that kind of generic vision in…”

“At least in the context of a SaaS company like ours that could work with any of these investors' portfolio companies, it's actually a very good business development approach as you are Working with these new, like, investors, winning this relationship, it's al…”