Introduction
“Holy shit” – if one phrase could sum up the SaaS financial scene in 2023, that would be it.
From down rounds to SVB’s collapse and shrinking SaaS contract values, this year has been a real rollercoaster.
It’s like that old saying goes: when the tide goes out, you see who’s been swimming naked. Companies are tightening belts left and right, slashing costs, and focusing fiercely on profitability.
But throughout these bleak times, there have been those who have acted as a beacon of information.
And SaaS Weekly has surfaced those voices out of the dark room.
Here are some of the most clicked-on SaaS finance reads we’ve seen in 2023.
The Finance Reads of 2023
Hold onto your pants: 2023 is the year of squeezing wallets.
Vendr's new data reveals that the Average Contract Value (ACV) in the SaaS market shot up by 43% in Q3, a sharp rebound from a historic low.
But here's the kicker: despite this jump, we're still playing catch-up to the three-year average.
Leading the charge, tech giants Salesforce and Microsoft hike prices by up to 25% - a move that echoes across the industry. As a result, squeezed buyers have become selective about new spend and cutting costs where they can.
Article by: Vendr
Did someone spike the punch?
Because the folks drinking the 'valuation Kool-Aid' are now feeling the hangover.
The tech community was optimistic about the public introductions of ARM, Instacart, and Klaviyo, seeing them as benchmarks for public market sentiment.
But this optimism faded when their IPO prices fell short of the peaks of 2020-2021. Now, the gap between private market valuations and public market outcomes is reshaping the financing landscape. In this article, Janelle explains why.
Article by: Janelle Teng at Next Big Teng
Late-stage startup valuations bounced back in Q2 2023 following a slump in 2022 and Q1 this year, with Series E and beyond valuations rebounding by 105%.
This revival, taking place against a backdrop of rising interest rates and economic uncertainty, hints at a return of VC investors.
But with the recession siren not completely off, we may not be out of the woods yet.
Article by: Adam Lewis by Carta
Ever wondered how a casual bakery visit can spark a financial epiphany?
Welcome to Sebastian Duesterhoeft's world, where even a simple muffin sale in Boston turns into a Total Addressable Market (TAM) lesson.
This article dives into the practicality of TAM, showing its crucial role in evaluating business potential, especially during the volatile COVID-era.
It highlights how companies like Salesforce and Datadog have expanded their TAM for exponential growth, offering a glimpse into the strategic thinking of top investors.
Far from dry number-crunching, this piece illustrates the tangible impact of market analysis, blending finance with real-world scenarios.
Article by: CJ Gustafson at Mostly metrics
The collapse of Silicon Valley Bank has left startups feeling uncertain about their finances. Now, achieving financial stability and security is top of mind for SaaS founders.
One way to do this is to maintain relationships with two different banks, which offers redundancy, flexibility, and the ability to transfer funds quickly (in case of a bank run).
Dive into a handful of other recommended best practices around banking for startups.
Article by: David Cummings
- How Markets Value Software Companies In 2023
– by Tomasz Tunguz
- My Thoughts On The SVB Meltdown
– by Dave Kellogg
- Lies of ARR vs GAAP Revenue Growth
– by OnlyCFO
Looking for more roundups?
Check out more of the top reads of 2023 by category. From Marketing to Finance, and AI in between, round out this year by reviewing the roundups of the most clicked-on articles.
The Top SaaS Reads of Q1 2024
Dive into the top SaaS reads of Q1 2024. Discover what articles were clicked-on the most across the weekly roundups.
The Top SaaS Reads of 2023
Explore the best SaaS reads of 2023: a curated selection guiding you through the year’s challenges, strategies for scaling, and the shift from growth at all costs to sustainable profitability.
The Top Marketing Reads of 2023
In 2023, AI revolutionized marketing, with tools like ChatGPT and DALL·E transforming how strategies are executed. Dive into the year’s top marketing insights with our curated list of the best reads.
Looking for more of the best SaaS reads?
Subscribe below to stay up-to-date with content from thought leaders in the industry. Every Friday, we curate seven of the best guides, gurus, and growth stories right in your inbox.
