The Narrowing of SaaS Valuations

The public markets have changed the way they value SaaS companies. The median forward revenue multiple for SaaS business reached its peak in February 2014, fell to its nadir two years later, and has since recovered, hovering at around five times forward revenue – where it has remained with little variance over the last six months. However, that’s not the whole story. It’s not just that the median has fallen. Rather, every SaaS company is now being valued in a much narrower range than even a few years ago. In 2014, forward revenue multiples ranged from 1× to more than 20x. There were lots of outliers, marked as little points in the box plot above. And the whiskers extended at least to 15x. Those whiskers show the distribution of valuations within two standard deviations of the mean. Starting in the beginning of 2015 however there is been a marked compression.
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S3, Cloudflare, Gitlab and You: It’s the Third Time You Lose Your Customers >Forever

It’s been a rough stretch in the cloud.  S3 / AWS was down for the better part of an entire day, taking a huge chunk of the Internet with it.  This shouldn’t happen, folks.  Cloudflare, which runs a significant part of the internet’s traffic, leaked passwords and other PII.  Gitlab deleted and lost source code. These are terrible.  Horrible.  Unacceptable. And yet, the internet isn’t there yet.  We’re not 100.00000% anywhere. And if this can happen to Amazon and to Cloudflare, then it will happen to you.  With 100% certainty.  Multiple times. You will have a terrible outage.  You may lose customer data.  You will have security issues.  Period. Screen Shot 2017-02-28 at 1.07.02 PMYou’ll probably act wrong the first time.  You may hide.  You may ignore it, when you are small.  You may blame a vendor.  You may do some crummy, it sort-of-wasn’t-me “root cause analysis” a few days later.  You may claim a “partial outage” has “impacted Continue reading "S3, Cloudflare, Gitlab and You: It’s the Third Time You Lose Your Customers >Forever"

Does Sales Development Have a Glass Ceiling?

VPSDR_path.jpgI've started and stopped writing this post half a dozen times over the last few months. I hesitated as I didn't want to upset anyone or look like I am casting shade on some amazing and successful people. But the more I've thought about it, the more I've come to understand that this is a topic that needs to be discussed.

I'm talking about the glass ceiling in Sales Development. And no, I don't mean the glass ceiling faced by many women and minorities. I mean this:

Once you have risen to the rank of VP of Sales Development, how do you crack into the C-suite?
Where do you go next?

Some of the best and brightest our industry has to offer are sitting in an SDR leadership role right now. They run global teams, report to the CEO, and are instrumental in revenue growth. But have their careers hit a

VPSDR_path.jpg
Continue reading "Does Sales Development Have a Glass Ceiling?"

Does Sales Development Have a Glass Ceiling?

VPSDR_path.jpgI've started and stopped writing this post half a dozen times over the last few months. I hesitated as I didn't want to upset anyone or look like I am casting shade on some amazing and successful people. But the more I've thought about it, the more I've come to understand that this is a topic that needs to be discussed. I'm talking about the glass ceiling in Sales Development. And no, I don't mean the glass ceiling faced by many women and minorities. I mean this: Once you have risen to the rank of VP of Sales Development, how do you crack into the C-suite?
Where do you go next?
Some of the best and brightest our industry has to offer are sitting in an SDR leadership role right now. They run global teams, report to the CEO, and are instrumental in revenue growth. But have their careers hit a
VPSDR_path.jpg
Continue reading "Does Sales Development Have a Glass Ceiling?"

6 Under-The-Radar Trends Shaping B2B Marketing & Sales Strategy in 2017

What are the big-picture trends shaping the market? How are those trends affecting my team’s strategy? Every marketing and sales leader should regularly ask themselves these two questions. Over the past year, predictive analytics and account based marketing – for example – have dominated the focus, imagination, and budgets of B2B marketing and sales teams. These trends stick out like a sore thumb. While Predictive and ABM are certainly major trends in the market, there also other forces at work – all instrumental in shaping business needs; some more subtle than others. Below is an overview of the 6 B2B trends that are quietly shaping the sales and marketing landscape for 2017 and beyond.

The New CMO

As marketing budgets continue to rise – up to 12% of revenue, according to Gartner – the scope of the CMO and marketing organization’s role continues to expand. The CMO, more than ever
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6 Tactics to Create a Conversion-Focused Sales Funnel

There is no metric more important than “conversion rate” when it comes to your sales funnels. How many people you can push from one stage of the funnel to the next will decide whether you land barren prospects or flourishing new accounts. Optimizing a funnel for conversions, however, can be a challenge. To help you out, I’ll show you 6 tactics you can use today to fine-tune your sales funnel for higher conversions.

1. Track conversion rate at every stage of the funnel

“If you can measure it, you can also improve it.” Embrace this idea when developing your sales funnels. You should know exactly how many people enter your funnel and how many drop off at each stage. Once you know where prospects are dropping off, you can take steps to plug the leak. Start by mapping out your entire sales funnel.

Startup Best Practices 23 – Leveraging The Illusion of Explanatory Depth in Interviews

Draw an image of a bicycle that depicts how the bicycle works. You might draw something like this bike above. Or this one. Or this one. But as Gianluca Gimini discovered when he asked 50 people over the course of six years to draw a bicycle, most people cannot - despite their great confidence of the contrary. Gimini rendered these drawings (on the right) to highlight incorrect most people’s understanding of a bicycles anatomy truly is. This is the illusion of explanatory depth or IOED, which Rozenbilt and Keil described in 2002
People feel they understand complex phenomena with far greater precision, coherence, and depth than they really do; they are subject to an illusion — an illusion of explanatory depth. The illusion is far stronger for explanatory knowledge than many other kinds of knowledge, such as that for facts, procedures or narratives.
The authors argued IOED occurs for four Continue reading "Startup Best Practices 23 – Leveraging The Illusion of Explanatory Depth in Interviews"