What Happens to Small SaaS Companies

Earlier this week I was talking to a venture capitalist about the Software-as-a-Service (SaaS) market. Halfway through our conversation we got to talking about what’s going to happen to all the successful (greater than $2 million recurring revenue) SaaS companies that are providing a service that isn’t venture backable (hard to see how the business…

Notes from the New Relic S-1 IPO Filing

Last week New Relic, an application performance company, published their S-1 IPO filing to go public. From a technical perspective, New Relic provides software developers insight into how every part of their web and mobile application performs, which is incredibly valuable. New Relic is part installed software (to gather the data) and part cloud-based software (to review…

SaaS Churn Rates With Early Exit Customers

Whenever I talk with Software-as-a-Service (SaaS) entrepreneurs, the topic of growth rates, and corresponding churn rates, always come up (see Quantifying the SaaS Valuation Growth Rate Multiplier). After talking about churn rates, I like to ask the following question: how long do customers have to stay with you to know they’re in it for the…

Dreamforce 2014

This week is the annual Super Bowl of Software-as-a-Service (SaaS) with the Dreamforce 2014 event in San Francisco. It’s the biggest event of its kind and draws 100,000+ people from all over the world. While I’m not attending this year, I’ve been many times in the past. Here are some thoughts from previous years: Ambitious…