SaaStr 686: What the Future of SaaS Holds for 2024 with David Sacks, Founder & General Partner, Craft Ventures, and Jason Lemkin, Founder & CEO, SaaStr
This podcast episode explores the current landscape of AI, venture capital, software business models, gross margin in SaaS businesses, the economic climate and its impact on businesses, the software industry's downturn, burn multiple, and introduces SaaSGrid, a dashboarding tool for SaaS companies. The discussions provide valuable insights and practical advice for founders, investors, and individuals navigating the evolving market conditions in the tech industry.
Takeaways
• The current investment landscape in AI is cautious due to the recent market bubble and subsequent cratering of metrics.
• Venture capital is becoming more cautious, emphasizing due diligence and a focus on economic fundamentals.
• Software business models are shifting from high-margin SaaS to low-margin SaaS, requiring exceptional operational skills to succeed.
• Gross margin is a key metric for SaaS businesses, with pure SaaS businesses typically having higher margins compared to blended businesses.
• The current economic climate has impacted various businesses, with tech companies facing challenges and the need for cost-cutting measures.
• The software industry is experiencing a downturn, leading to a shift in seed expansion expectations and the merging of software categories.
• Burn multiple is a critical metric for startups to monitor, and efficiency in all aspects of the business is crucial, especially in challenging economic times.
• SaaSGrid is a user-friendly dashboarding tool designed specifically for SaaS companies, offering comprehensive data tracking and analysis capabilities.
