What Does it Take to Win in SaaS in 2020?

It has been 20 years since the first SaaS companies were founded. Many of these companies have delivered on the original value promised in terms of helping companies save time, making employees more productive, and enabling organizations to make more money.

In the last three years private equity firms have funded over 4,000 SaaS companies with more than $50 Billion in funding. Over 50 SaaS companies are publicly traded today and reached the dream of $100 Million in ARR. Salesforce has exceeded $150 Billion in market cap and there are more than 100 SaaS companies with a valuation over $1 Billion.

And private equity firms say they still have over $10 Trillion waiting on the sidelines to invest!

Companies are also adopting SaaS solutions more and more. Many companies report that they use hundreds of various SaaS solutions and spend millions on SaaS solutions annually.

All of this is to say that there is massive traction in SaaS and a lot of opportunity. With this sort of momentum there also is a big challenge – How do SaaS companies carve out their own space in this crowded SaaS universe and compete for their wallet share of the money that companies are willing to spend on SaaS?

In short, the answer is that it’s complicated.

For most companies the chance of getting private equity funding and then living the SaaS dream of getting to $100 Million in ARR and a $1 Billion + valuation are about 1 in 1,000. Most of the successful SaaS companies have had founding teams that have worked for 15-20 years to build their success. Most SaaS leadership teams have really put in their sweat equity and strung together 2,000+ days of somewhat non-glorious work to become successful.
The stars need to align and quite a few things need to go your way across the entire company in order to live the SaaS dream. The overall economy, competitive dynamics, the ability to hire the right talent at the right time, and providing the right solution to real business challenges at the right time are examples of the many variables that new companies need to time just right.

Seems impossible? Against the odds?

We focus on helping companies with SaaS and B2B marketing strategies. But a significant part of the work we do is the research that guides decision through the maze of variables. We also focus quite a bit on helping companies achieve alignment across marketing, sales, and product teams Like thousands of companies who work with Sirius Decisions, Gartner, Forrester and IDC we believe success comes at the intersection / alignment of these disciplines.
On our site we are happy to share insights on these topics that our team has learned working with a wide range of SaaS and B2B companies over the last 20 years. Feel free to contact us at any time if you would like to learn more about any of the information we are sharing or speak with our team about the services we provide.”

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Eric Eden

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