For decades, the SaaS playbook was clear: predictable revenue streams, very high gross margins, efficient customer acquisition and strong net revenue retention made a startup very attractive to investors. These metrics built unicorns and defined how investors valued SaaS investments. If you're a SaaS founder ' especially one raising capital ' this may lead to uncertainty and confusion. You may lose sleep because the whole market trajectory is uncertain. Investors themselves are trying to anticipate how the SaaS business model will change and, ultimately, what your company should be. To add further confusion, the model many VCs are championing (SaaS and services, anyone') doesn't look anything like traditional SaaS. So, what should a founder do' In a recent blog post, Sequoia Capital partner Julien Bek argued that the next trillion-dollar company will be a software business disguised as a services firm, one that sells both tools and outcomes. His logic is straightforward: For every...
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