Stocks post worst quarter since 2008 financial crisis


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The first quarter of 2020 ended with a whimper  — with the Dow Jones Industrial Average, S&P 500 and NASDAQ posting their worst quarter in decades — as the COVID-19 pandemic continues to cause uncertainty and volatility across all major stock market indices.

At the beginning of the quarter, we were still basking in a decade-long bull market. The global pandemic, and the economic havoc it caused, put an end to those halcyon days. All major American indices dropped into bear-market territory March 12, after shedding the requisite 20% from recent highs. The rollercoaster continued, with equities bumping along the bottom, periodically popping up, only to fall again as the epicenter of the pandemic shifted from China to Europe and now the United States. The number of cases in the U.S. has prompted states to issue stay at home orders, putting the brakes on business as usual. As Continue reading "Stocks post worst quarter since 2008 financial crisis"

SaaS companies flirt with correction territory as another wild week comes to a close


This post is by Alex Wilhelm from SaaS – TechCrunch


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Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Stocks are set to fall further today, likely forcing shares in SaaS and cloud companies down yet again. After two wild trading weeks, the high-flying tech category is off over 9% from recent highs before the bell this morning, putting it close to correction territory. (A correction is usually defined as a decline in value of 10% or more from recent highs.) With today’s expected declines, SaaS companies are likely set to close out Friday close to or in a formal correction. Even more notably the Bessemer cloud index, which tracks public SaaS companies, is worth less today — even before fresh declines — than it was last July. That implies that SaaS companies have not only given up recent gains; they’ve shed all their progress since Continue reading "SaaS companies flirt with correction territory as another wild week comes to a close"

SaaS companies flirt with correction territory as another wild week comes to a close


This post is by Alex Wilhelm from SaaS – TechCrunch


Click here to view on the original site: Original Post




Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Stocks are set to fall further today, likely forcing shares in SaaS and cloud companies down yet again. After two wild trading weeks, the high-flying tech category is off over 9% from recent highs before the bell this morning, putting it close to correction territory. (A correction is usually defined as a decline in value of 10% or more from recent highs.) With today’s expected declines, SaaS companies are likely set to close out Friday close to or in a formal correction. Even more notably the Bessemer cloud index, which tracks public SaaS companies, is worth less today — even before fresh declines — than it was last July. That implies that SaaS companies have not only given up recent gains; they’ve shed all their progress since Continue reading "SaaS companies flirt with correction territory as another wild week comes to a close"

A boom, a bust, a reckoning, a race: four takes on today’s startup market


This post is by Alex Wilhelm from SaaS – TechCrunch


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Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Today let’s try to figure out where the startup and private markets stand, as there are a few different takes out there that I can’t reconcile. Our efforts to better understand how young companies are faring comes, of course, in the shadow of the impending $7 billion Intuit-Credit Karma deal — the second, multi-billion dollar fintech exit so far in 2020. So where are we today in the startup business cycle? We’ll summarize a few different perspectives on the question, and then come up with our best synthesis of the group. If you observe the behavior of the venture class, it’s a full-speed-ahead market. This is contrasted by a summary of recent private-market tech stumbles compiled by New York Times’s Erin Griffith. Bolstering Griffith’s take are a set of long-running Continue reading "A boom, a bust, a reckoning, a race: four takes on today’s startup market"

DigitalOcean raises $100M in debt as it scales toward revenue of $300M, profitability


This post is by Alex Wilhelm from SaaS – TechCrunch


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DigitalOcean, a cloud infrastructure provider targeting smaller business and younger companies, announced today that it has secured $100 million in new debt from a group of investors, bringing its 2016-era debt raise to a total of around $300 million. The company’s nearly $200 million debt raise in 2016 was preceded by an $83 million Series B in 2015.

TechCrunch spoke with DigitalOcean’s CEO Yancey Spruill (hired in 2019, along with a new, IPO-experienced CFO; the company added a new CMO earlier this year) to get under the skin of the new funding, and better understand the company’s revenue scale, its financial health and its future IPO plans. The firm intends to use the new funds to invest in partnerships, boost product investment and grow what its CEO called an “early-stage” inside sales capacity. For readers of our regular $100 million ARR club series, consider this something Continue reading "DigitalOcean raises $100M in debt as it scales toward revenue of $300M, profitability"

As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow


This post is by Alex Wilhelm from SaaS – TechCrunch


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Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

SaaS stocks had a good run in late 2019. TechCrunch covered their ascent, a recovery from early-year doldrums and a summer slowdown. In 2020 so far, SaaS and cloud stocks have surged to all-time highs. The latest records are only a hair higher than what the same companies saw in July of last year, but they represent a return to form all the same. Given that public SaaS companies have now managed to crest their prior highs and have been rewarded for doing so with several days of flat trading, you might think that there isn’t much room left for them to rise. Not so, at least according to Atlassian . The well-known software company reported earnings after-hours yesterday and the market quickly pushed its shares up by more than Continue reading "As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow"

As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow


This post is by Alex Wilhelm from SaaS – TechCrunch


Click here to view on the original site: Original Post




Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

SaaS stocks had a good run in late 2019. TechCrunch covered their ascent, a recovery from early-year doldrums and a summer slowdown. In 2020 so far, SaaS and cloud stocks have surged to all-time highs. The latest records are only a hair higher than what the same companies saw in July of last year, but they represent a return to form all the same. Given that public SaaS companies have now managed to crest their prior highs and have been rewarded for doing so with several days of flat trading, you might think that there isn’t much room left for them to rise. Not so, at least according to Atlassian . The well-known software company reported earnings after-hours yesterday and the market quickly pushed its shares up by more than Continue reading "As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow"

Public investors loved SaaS stocks in 2019, and startups should be thankful


This post is by Alex Wilhelm from SaaS – TechCrunch


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Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Today, something short. Continuing our loose collection of looks back of the past year, it’s worth remembering two related facts. First, that this time last year SaaS stocks were getting beat up. And, second, that in the ensuing year they’ve risen mightily. If you are in a hurry, the gist of our point is that the recovery in value of SaaS stocks probably made a number of 2019 IPOs possible. And, given that SaaS shares have recovered well as a group, that the 2020 IPO season should be active as all heck, provided that things don’t change. Let’s not forget how slack the public markets were a year ago for a startup category vital to venture capital returns.

Last year

We’re depending on Bessemer’s cloud index today, renamed the “BVP
Continue reading "Public investors loved SaaS stocks in 2019, and startups should be thankful"

Top VCs, founders share how to build a successful SaaS company


This post is by Ron Miller from SaaS – TechCrunch


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Last week at TechCrunch Disrupt in San Francisco, we hosted a panel on the Extra Crunch stage on “How to build a billion-dollar SaaS company.” A better title probably would have been “How to build a successful SaaS company.”

We spoke to Whitney Bouck, COO at HelloSign; Jyoti Bansal, CEO and founder at Harness, and Neeraj Agrawal, a partner at Battery Ventures to get their view on how to move through the various stages to build that successful SaaS company. While there is no magic formula, we covered a lot of ground, including finding a product-market fit, generating early revenue, the importance of building a team, what to do when growth slows and finally, how to resolve the tension between growth and profitability.

Finding product-market fit

Neeraj Agrawal: When we’re talking to the market, what we’re really looking for is a repeatable pattern of use cases. So
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Continue reading "Top VCs, founders share how to build a successful SaaS company"

Ten years after Adobe bought Omniture, the deal comes into clearer focus


This post is by Ron Miller from SaaS – TechCrunch


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Ten years ago this week, Adobe acquired Omniture for $1.8 billion. At the time, Adobe was a software company selling boxed software like Dreamweaver, Flash and Photoshop to creatives. Many people were baffled by the move, not realizing that purchasing a web analytics company was really the first volley in a full company transformation to the cloud and a shift in focus from consumer to enterprise.

It would take many years for the full vision to unfold, so you can forgive people for not recognizing the implications of the acquisition at the time, but CEO Shantanu Narayen seemed to give an inkling of what he had in mind. “This is a game-changer for both Adobe and our customers. We will enable advertisers, media companies and e-tailers to realize the full value of their digital assets,” he said in a statement after the acquisition became public. While most people thought Continue reading "Ten years after Adobe bought Omniture, the deal comes into clearer focus"