Blue Horizon’s reading list is a curated collection of articles for SaaS founders and management teams. We are entrepreneurs and operators who have lived through the process of founding and scaling software companies. Here are the articles and resources we found useful this month.
The 10x Exercise for Entrepreneurs
by David Cummings
Once an entrepreneur has gained some traction, product-market fit, and the beginnings of a repeatable customer acquisition process, one of my favorite exercises for them is the 10X scale. The tenet of this scale is the idea, “What would the business look like at ten times its current scale?” So, we’re talking ten times the size, ten times the revenue, ten times the customers, and ten times the opportunity in the market.
What’s going on with pricing this year? A deep dive into 2023 pricing data.
by OpenView Partners
◾Folks are changing both pricing and packaging.
◾SaaS companies continue to embrace more complex, hybrid pricing models.
◾olks are bringing pricing in-house.
◾PLG companies are starting to localize pricing for different markets.
◾We’re in the early innings of AI monetization.
What is the Average Deal Size for Private SaaS Companies in 2023?
by SaaS Capital
The obvious takeaway is that private bootstrapped and equity-backed also have different ACV and ARR profiles. As noted above, deal size is correlated with company size. Equity-backed companies with at least $1 million in ARR show a median ARR that is twice that of bootstrapped companies and the ACV/ARR correlation holds true.
The Software Industry’s Productivity Boom: Analyzing Revenue per Employee Trends
by Tomasz Tunguz
For these publicly traded companies, there’s a slow decline in growth rate but the combination of product-market fit & the opportunity to expand the product portfolio allows them to keep expanding revenue per employee at attractive rates.
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Blue Horizon acquires and invests in profitable software businesses with stable recurring revenue streams. The Blue Horizon platform combines long-term capital and industry expertise with an operating model that enables businesses and their leaders to focus on growth and profitability.