Tomasz Tunguz + Jason Lemkin on The State of SaaS


Tomasz Tunguz – Venture Capitalist / Redpoint



Jason Lemkin and Tomasz Tunguz on the State of SaaS



Expect lots of buying activity in SaaS over the next year

M&A – General

  • Decline in volume in transactions by 50% in 2017
  • Many sitting on cash earning nothing so they need to spend in 2018
  • Big transactions might happen like Google buying Salesforce
  • Consolidation is going to happen amongst the top 5 players
  • Smaller players aren’t going to have a lot of success, you need to be bigger!

IPO – General

  • Fund raising mechanism
  • Growing circa 70%
  • Milestone to build a brand
  • Some SaaS companies worth $80b on the market
  • If you grow to 100m ARR then you should be able to IPO fairly easily
  • Very early for the cloud, there will be more interest in SaaS for a long time
  • Majority of companies buying SaaS companies will be non tech companies moving forward