The Average SaaS IPO Takes 12 Years; Plus Weekly SaaS News and Updates

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Hey SaaStr Community,

So how long does it take to really Go Big? We did our own SaaStr analysis a little while back and saw it took on average 10 years to get to a $1B+ acquisition in SaaS. And an IPO? Sapphire Ventures crunched the numbers. And the answer is 12 years to IPO.

It’s a challenge to us all to push through the tough times we often see around years 4-5. When there is too much going on, not enough resources and almost all of us get a bit tired. A challenge to sign on for a second 5-year journey, from Years 5-10 or so. And it’s only by the end of that second journey that power laws really kick in.

> Why The Average SaaS IPO Takes 12 Years

New This Week

SaaStr Annual Kicks Off Next Week! Sept 27-28-29

The countdown is on to the biggest SaaS conference of the year! 3 days. 5 stages. 300+ speakers and Cash Cash playing the Big Party. Plus, we've put a big focus on networking this year with Meet a VC, Founder Confidential and hundreds of roundtables and 1:1's. This is the SaaStr Annual you can't miss.

Register now -->

This edition of the SaaStr weekly is sponsored in part by Leadiro by Demand Science

Small Deals at Large Customers. Hooray!! And 100% At Risk.

Every customer you close, the next day, is at some risk of churn. A month-to-month customer can basically cancel anytime. An annual contract customer can sort of cancel anytime, but that churn probably won’t show up for the better part of a year, even 2 or 3. But the riskiest deals of all are Small Deals at Large Companies.

Why is this? -->

8 Signs of a Failing Sales Rep

The first sign is immediate, massive discounting. Because they have no other idea how to close a deal or create urgency.

A few telltale signs -->

This edition of the SaaStr weekly is sponsored in part by Greenhouse

How Long Does It Take To Get to A Billion+ Acquisition in SaaS? About 10 Years

Mailchimp just had the largest exit yet for a private SaaS company. $12 Billon to Intuit. Incredible. But it was a full 20 years after founding. It inspired me to do a post on how long in SaaS it takes to get to a $1B acquisition.

Why it takes a decade -->

Anjali Sud, CEO of Vimeo: "It's Still So Early in SaaS"

A great deep dive on Vimeo at $330m+ in ARR, and especially, on how they do self-serve and enterprise at the same time.

Watch now -->

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