Venture-Backed Startups Are Still Running the 2021 Playbook

Reaching social media, tech press, and blog posts you’d think everything was about efficiency. Heck, the 5 Interesting Learning series on SaaStr is all about efficiency.

And for many in SaaS, especially those that sell mainly to startups and tech, it’s often been a rough 2 years. With no more funding coming, and growth way down.

So can you pay less these days? Is hiring any easier? Not really. Or at least, not that much. Not for most of us.

Why? Well, the best in SaaS and venture and Cloud are not just still growing at epic rates, but they’re acquiring so much funding … they can still run the 2021 playbook. More or less. The companies that can run this playbook today are only the best of the best. But they can, and are, still running it.  The best can still burn million and millions a month and pay top-tier salaries.  Put differently, maybe 80% of unicorns can’t do this anymore.  But the top 20% can, and often are.

Alex Kayyal and Julie Kainz, Partners at Lightspeed, shared at SaaStr Annual a framework they developed around how to think about this new era of Artificial Intelligence in SaaS, what opportunities are out there for startups, and how to think about incumbents. Together with Abhay Parasnis, founder and CEO of Typeface, they chat about what it looks like to be a builder at the forefront of Generative AI.

Lightspeed has invested in companies for about 20 years, with roots in early-stage Enterprise investing. Enterprise technology spend has remained resilient, with Cloud spend tripling over the last year. The real shift they’re noticing is with GenAI and the impact of that shift on the SaaS community.

The “downside” of entrepreneurship is that it changes you.

Not immediately, but sometime around 24 months in:

• You will think about your start-up close to 24×7. You might only work 40 hours a week. You can’t work constantly. But in your quiet moments, on a run, in the shower … you’ll be thinking about your start-up.
• Your family won’t understand. They won’t get why it consumes so much of your mind. You’ll sort of drift a tiny bit more apart because of this.
• You’ll drift away from non-core friends. You just won’t have as much in common anymore. But you’ll make great work-related friends.
• Your brain will be rewired. You’ll be more intense. You’ll have so many “almost failing” experiences, you’ll approach life differently. You’ll see it in part as a series of crises to be pushed through.

So we’re coming back to Miami for the 4th SaaStr Super Miami Meet-up!!

We’re getting together 300+ SaaS and Cloud execs to talk all things scaling right in Wynwood.  It’s out 4th Miami meet-up and everyone has been a blast.  We’ll kick things off around 4pm and go until folks get tired, and including a few informal AMAs:

• CRO Confidential LIVE with Sam Blond
• CEO Vimeo on Scaling PLG + SLG Together
• Open AMA with Jason

and much more!!  There will be mojitos, good food, and good friends. Grab your tickets now!  March 6 in Miami!

This edition of the SaaStr Daily is sponsored in part by Auditwerx

While GRC tools can offer convenient features, did you know a CPA is necessary to sign off on a completed SOC report? Your CPA auditor is responsible for the validity and completeness of the evidence gathered, meaning working with a CPA firm like Auditwerx can help save your organization time and money.

Want to partner with SaaStr? Click here to Sponsor our events, podcasts, newsletters and more.

“Doubling Down” is a new series where we hear from top B2B SaaS investors on their most recent activities and takes on the current market. We had a great one last time with Satya Patel, Partner at Homebrew. Check that out here.

This week we’re focusing on Hilarie Koplow-McAdams, Venture Partner at NEA!

That I matter.

This is a rare skill, and hard to hone:

• That I’m not just a transaction.
• That my concerns matter.
• That I won’t be abandoned the second the deal closes.
• That all my questions will be answered, even if it takes longer than it should.
• That One More Demo is OK to ask for, without pressure.
• That I don’t have to “get on a call” about everything if I don’t want to.
• That the follow-ups I get from you will all be about helping, not pressure.
• That the pricing will be fair, and the same others pay for the same usage. So I don’t have to stress about negotiating.
• That if I need to do a trial, or a pilot, it’s fine. Totally fine.
• That if I need 2 months to make a decision, not 2 days, you’ll still be there.

That I matter.

It means treating each customer like you’d like to be treated yourself. Like their money really matters. It means putting more time in than might seem to make sense. It means treating tiny customers as well as, or even better than, large customers.

Do it right though, and you close more.

© SaaStr 2024

644 Emerson St. Suite 200, Palo Alto, CA, 94301

If you'd like to stop receiving the SaaStr Daily, click here