The Official SaaStr Podcast: SaaS | Founders | Investors SaaStr 772: What Really Matters in SaaS in 2025 with Jason Lemkin and Dave Kellogg
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Nov 6, 2024 In this engaging discussion, Dave Kellogg, Executive in Residence at Balderton Capital and SaaS expert, joins Jason Lemkin to explore the future of SaaS in 2025. They delve into the anticipated surge of IPOs and the evolving dynamics of SaaS sales. The conversation covers the impact of AI on budgets, customer success strategies, and the critical importance of fair enterprise pricing. With insights on navigating private equity acquisitions and the challenges of slow growth, Kellogg offers invaluable advice for SaaS founders looking to thrive in a competitive landscape.
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2025: The Year of PE IPOs?
- Consider an IPO in 2025 if liquidity is needed, even if valuations are lower than previous rounds.
- Many companies may choose this route due to the challenging IPO market.
Target Metrics for PE
- Aim for 20 million ARR, 30% growth, and near-zero losses to attract PE interest.
- Fix operational issues and demonstrate profitability before approaching PE firms, as they prefer less risky investments.
PE Landscape and Preferences
- The PE landscape is vast, with firms specializing in different sizes of SaaS companies, from small bootstrapped businesses to large enterprises.
- PE firms often prefer acquiring companies that are already financially sound, rather than those needing significant restructuring.
