Is a weekly martini ARR? | with Dave Kellogg

13 snips

Nov 26, 2025

Dave Kellogg, a veteran SaaS operator and blogger, dives deep into the evolving economics of software. He discusses how traditional ARR metrics are faltering and what really influences buyer interest in today's M&A landscape. The conversation covers the plight of 'zombie' SaaS companies, the nuances between various recurring revenue types, and why vertical software is more appealing for acquisitions. They also touch on real-world pricing strategies and provide insights on effective scheduling etiquette in professional settings.

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INSIGHT

Subscale Horizontal SaaS Looks Like A Zombie

Many 20–50M ARR horizontal SaaS companies without strong growth look like zombies to buyers.
Dave Kellogg worries buyers are scarce unless metrics or positioning are exceptional.

INSIGHT

Preference Stacks Skew Exit Outcomes

Preference stacks and liquidation preferences create severe misalignment between late and early investors.
Founders and employees (common) can get wiped out while later-stage preferred recover most proceeds.

INSIGHT

AI Tuck-Ins Drive Many M&A Deals

Strategic acquirers are buying AI tuck-ins and team/talent rather than traditional SaaS tuck-ins.
Deal count can rise driven by many small AI tuck-ins even if traditional SaaS M&A is weak.

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