SaaStock 2019 - elizabeth cain
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The document summarizes insights from a survey of over 500 SaaS companies on how to grow faster in 2019. It finds that founders' top worries are product and go-to-market execution. While fundraising is easier than in the past, accelerating growth remains a challenge. It recommends that companies get focused by picking a target customer segment, nailing their pricing strategy, and adopting a product-led growth model to directly appeal to end users. Transitioning to these strategies may improve median growth rates, especially for larger companies.
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SaaStock 2019 - elizabeth cain
- 1. INSIGHTS FROM 500+ SAAS COMPANIES ON HOW TO GROW FASTER IN 2019 Kyle Poyar Liz Cain See the deck: openview.vc/SaaStock19
- 2. SO YOU THINK YOU CAN SAAS What’s most likely to keep a founder up at night? A. Cash burn B. GTM execution C. Hiring the best talent D. Fundraising E. Product execution SaaSbenchmarks.com See the deck: openview.vc/SaaStock19
- 3. 3©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 22% 26% 37% 50% 56% Fundraising Cash burn Hiring the best talent GTM execution Product execution WHAT FOUNDERS HAD TO SAY 💵 🔥 🦄 📲 💪
- 4. 4©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 2019 EXPANSION BENCHMARKS STUDY 639 Survey participants
- 5. 5©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 639 Survey participants 70% Founder or C-level 2019 EXPANSION BENCHMARKS STUDY
- 6. 6©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 639 Survey participants 70% Founder or C-level 44% Based outside the US 2019 EXPANSION BENCHMARKS STUDY
- 7. 7©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 639 Survey participants 70% Founder or C-level 44% Based outside the US 19 Survey partners 2019 EXPANSION BENCHMARKS STUDY
- 8. 8©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 639 Survey participants 70% Founder or C-level 44% Based outside the US 19 Survey partners 54% B/w $1-20M in ARR 2019 EXPANSION BENCHMARKS STUDY
- 9. 9©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 639 Survey participants 70% Founder or C-level 44% Based outside the US 19 Survey partners 54% B/w $1-20M in ARR 2017 First year of the study 2019 EXPANSION BENCHMARKS STUDY
- 10. 10©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com COMPARED TO LAST YEAR, WE’RE SEEING MORE FUNDRAISING Equity Capital Raised by ARR 75% 53% 21% 9% 18% 23% 13% 8% 7% 17% 51% 32% 5% 15% 53% $1-2.5M ARR $2.5-10M ARR $10-20M ARR $20-50M ARR <$10M $10-20M $20-50M >$50M 2x as many $50M+ raisers compared to 2018
- 11. 11©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com BUT YOY GROWTH… 0% 20% 40% 60% 80% <$1M ARR $1-2.5M ARR $2.5-10M ARR $10-20M ARR $20-50M ARR >$50M ARR 2018 growth rate Median Growth Rate by ARR
- 12. 12©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com BUT YOY GROWTH IS STAGNANT 0% 20% 40% 60% 80% <$1M ARR $1-2.5M ARR $2.5-10M ARR $10-20M ARR $20-50M ARR >$50M ARR 2019 growth rate 2018 growth rate Median Growth Rate by ARR
- 13. HOW DO WE FIX THIS? 🔧⚙️ SaaSbenchmarks.com
- 14. GET FOCUSED SaaSbenchmarks.com See the deck: openview.vc/SaaStock19
- 15. 15©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com ARE YOU HEARING THINGS LIKE? Our product can work for everyone.
- 16. 16©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com ARE YOU HEARING THINGS LIKE? Our product can work for everyone. Can it???? 🙃
- 17. 17©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com ARE YOU HEARING THINGS LIKE? If we just build this one feature, we could sign up this major account
- 18. 18©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com ARE YOU HEARING THINGS LIKE? If we just build this one feature, we could sign up this major account What’s the trade off? 🤔🤔🤔
- 19. 19©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com ARE YOU HEARING THINGS LIKE? Each sales rep has their own way of finding new leads.
- 20. 20©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com ARE YOU HEARING THINGS LIKE? Each sales rep has their own way of finding new leads. WTF? 🤡
- 21. YOU HAVE A SEGMENTATION PROBLEM SaaSbenchmarks.com
- 22. PICK A SWIM LANE TO WIN IN THE MARKET SaaSbenchmarks.com
- 23. 23©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 21 HOW TO GET FOCUSED Study your win-loss data and take the time to enrich it Don’t over-engineer it – your sweet spot shouldn’t be a surprise Execution alignment is more important than being exactly ‘right’ 1 3
- 24. NAIL YOUR PRICING SaaSbenchmarks.com See the deck: openview.vc/SaaStock19
- 25. HAVE YOU THOUGHT DEEPLY ABOUT PRICING? SaaSbenchmarks.com
- 26. 26©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 1% CHANCE OF HURTING ARR 1% Decreased ARR
- 27. 27©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com 99% CHANCE OF INCREASING ARR 1% Decreased ARR 0-9% ARR increase 17% 10-24% ARR increase 36% 25-49% ARR increase 23% 23% 50%+ ARR increase
- 28. 28©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com HOW TO FIX YOUR PRICING 21 Conduct pricing research and collect data on pricing Designate someone to own pricing Test a higher price (after customers have seen value) 1 3
- 29. ADOPT PRODUCT LED GROWTH SaaSbenchmarks.com See the deck: openview.vc/SaaStock19
- 30. 30©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com TODAY END USERS ARE FINDING GREAT SOFTWARE
- 31. 31©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com AND TELLING THEIR BOSS WHICH ONES TO BUY
- 32. 32©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com PRODUCT LED GROWTH Product usage serves as the primary driver of user acquisition, conversion and expansion.
- 33. 33©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com THE PLG IPO WAVE IS BUILDING Product Led Growth IPOs Since 2012
- 34. 34©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com I hate expense reports. So annoying! I hate file sharing. So annoying! I hate internal emails. So annoying! I hate scheduling. So annoying! I hate web conferencing. So annoying! I hate post-it notes. So annoying! BECOMING PRODUCT LED: ANNOYANCE IS OPPORTUNITY
- 35. 35©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com HOW TO PLG-IFY YOUR BUSINESS PLG Companies All Companies Free trial offering 74% 45% Product analytics for decision making 67% 31% Self-service buying experience 61% 28% Bottoms-up sales 55% 31% Product qualified leads 53% 29% Referral programs 50% 31% Dedicated growth FTEs 47% 27% Freemium offering 38% 18%
- 36. 36©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com PLG TAKES PATIENCE 0% 25% 50% 75% 100% <$1M ARR $1-2.5M ARR $2.5-10M ARR $10-20M ARR $20-50M ARR >$50M ARR Non-PLG Median Growth Rate by ARR and PLG Adoption
- 37. 37©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com PLG TAKES PATIENCE 0% 25% 50% 75% 100% <$1M ARR $1-2.5M ARR $2.5-10M ARR $10-20M ARR $20-50M ARR >$50M ARR PLG Non-PLG Median Growth Rate by ARR and PLG Adoption Faster growth at scale compared to non- PLG companies
- 38. 38©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com IT EVEN WORKS FOR ENTERPRISE 48% 42% 36% 25% 52% 58% 64% 75% VSB SMB Midmarket Enterprise PLG Non-PLG PLG Adoption by Target Segment
- 39. THE TAKEAWAY SaaSbenchmarks.com See the deck: openview.vc/SaaStock19
- 40. 40©2019 OpenView Advisors, LLC. All Rights ReservedSaaSbenchmarks.com Founders are having trouble sleeping. They’re worried most about Product and GTM execution. Fundraising is easy, but accelerating growth is hard. Start by picking a swim lane. Getting focused allows you to hone your roadmap and GTM strategy. Nail your pricing. Put someone in charge and collect pricing data. Adopt Product Led Growth (PLG). Appeal to the end user; don’t annoy them. THE TAKEAWAY 1 2 3 4 5
- 41. THANK YOU G O T Q U E S T I O N S ? W E ’ V E G O T A N S W E R S . T W E E T @ O P E N V I E W V E N T U R E SaaSbenchmarks.com See the deck: openview.vc/SaaStock19