Dropbox, once a darling of VCs, has raised Series B at a $4B valuation and Series C at a $10B valuation.
8 years later today, $DBX is valued at $8.69B in the public market.
The last 18 months in the VC world were bonkers, and as a result, we will see many more Dropboxes.
It's absurd how quickly $TWLO went from being the acquirer of choice ($60B market cap) to becoming a potential acquisition target ($7.8B market cap).
A ~$4B ARR cloud company growing 30% YoY is trading at 1.2x ARR...
Personal update: After 3 amazing years
@Segment
and
@Twilio
, I'm embarking on a new adventure. I’m stoked to share that I’ve joined
@BatteryVentures
to invest in and partner with founders building the next generation of SaaS, API, and Infrastructure companies.
In scenarios like down rounds and distress sales, it’s not VCs but employees who are at a real loss.
If you are a candidate considering joining a *unicorn* startup, do your diligence and avoid overvalued companies.
Feel free to DM me to discuss your options; happy to help!
A painful lesson many VCs will learn from 2021 is that a great company does not equal a great investment. And things like valuation and ownership do matter.
Incredibly stoked to share that we
@segment
are joining forces with
@twilio
to build the world’s most complete customer experience infrastructure!!
A big thanks to customers, partners, team, investors and our fearless founders for shaping Segment into a $3.2B company 🙏🏻😇🙌🏻
There are 1000 unicorns, and my wild guess is that at least 70% of them are overvalued. I feel for the employees who continue to join these companies, give their all, and even pay an absurd amount of money on exercising their stock options, only to realize they are worth nothing.
It's truly inspiring to see Indian women rise to CEO/President roles at some of the world's most successful Enterprise Software companies. First, Yamini Rangan at
@HubSpot
, followed by Anu Bharadwaj at
@Atlassian
, Astha Malik
@Braze
, and now Archana Agrawal at
@intercom
.
What…
I'm increasingly convinced that product-led growth may become the new GTM standard for building a large SaaS business.
If you look at the latest companies that made into the $1B ARR Club, you'll notice they are all are self-serve first.
To make sense of Tiger's extraordinary investing pace, you need to know 3 things:
1) Decentralized decision-making (no IC)
2) 18% IRR target (not aiming for 5x returns)
3) $6.65 billion to be invested in 2 years, translates to roughly $1.5M to be deployed per partner per day
We work hard, stay humble, make fewer investments than funds of similar size but do it with high conviction and commitment. And we focus intensely on the cloud – as this
@Forbes
#Cloud100
VC roundup shows :)
Proud of my team
@BatteryVentures
!!
TIL,
@Salesforce
has 2000 customers who pay > $1M annually, that’s 4 times more than Fortune 500 list.
200 customers who pay > $10M annually
40 customers who pay > $20M annually
73% of new ARR came from upselling to existing customers 🤯
Inspiring to witness
@getpostman
's journey from being an open-source chrome extension (2013) to a $2b company with 10m users. Kudos to
@a85
for brilliant execution, so stoked for a college friend to take on the world :)
There's something to be said about the “Rubrik, Nutanix, ThoughtSpot, Cohesity” mafia.
They are Indian immigrants with humble origins who attended IITs and came to the US for grad school. They started their careers at Oracle, Cisco, or Microsoft, and later worked at Google or…
I can't help but brag about the Segment Mafia, who are now leading Product/GTM teams at companies like:
---
Airplane
Attentive
Gem
Hightouch
Middesk
Miro
Monte Carlo
Mural
Mux
Pave
Retool
Rippling
Sentry
Sourcegraph
Statsig
Vercel
etc.
---
Increasingly noticing a trend where a PM/Eng from a famous unicorn leaves to start a company, raises a few million $ seed round, pivots within 12 months, and gets acquihired in the next 18-24 months.
So next time you hear about a *hot* seed round, take it with a grain of salt.
2010-2019 what a decade!!
👨🎓 attended BITS Pilani
🏗 co-founded
@BelongCo
🚀 now growing
@segment
🇺🇸 moved to San Francisco
👬 👫 made amazing friends
📚 always learning something new
🏔🏞🏜 🏝 10 countries
Eternally grateful to my family, friends, mentors and strangers 🙏🏻
Freshworks probably is one of the most underrated cloud companies today. You'd be surprised, given how many people in the valley have never heard of them.
Their Rank on the Forbes Cloud 100 list👇
2017:
#95
2018:
#60
2019:
#40
2020:
#16
@mrgirish
is an unstoppable force! 🙏
It’s just insane how many talented people are starting up right now and are raising $3-5M seed rounds on the basis of an idea or a Figma mockup.
Early stage investing has come down to how well you underwrite people.
It’s wild how SaaS companies take 7-9 years to hit $100M, but reach $1B in ARR within the next 3-5 years.
The best companies are compounding much faster than before!
@bdeeter
@KTRBRS
As a former tech entrepreneur and a native of Telangana, I applaud the remarkable progress you've made in drawing tech giants to setup their offices in Hyderabad.
However, I’m worried if we are scaling too fast? And how this might impact the standard of living in the long run.…
Naren ji was a legend. I had the good fortune of meeting him during peak quarantine in his backyard over afternoon tea. Even though he was 70+, he had the energy of a 20-year-old, there were so many stories and so much wisdom.
Saddened by the news, may his soul rest in peace 🙏🏻
A painful lesson many founders will learn is that being undervalued is so much better than being overvalued.
When a startup raises money at a high valuation and doesn't grow into that number – employees quit, product release cycles slow down, growth stalls, and customers churn.
The Indian IT services sector is a $250 billion revenue industry that has historically been a human capital-intensive, low-margin business. However, with the advent of Gen AI, it is poised for change.
There's an opportunity to build AI-native Services companies from India that…
Some of the most legendary engineers, PMs and solution architects at Segment came from coding bootcamps. Never underestimate the power of hunger and hard work.
What a week for Altimeter!? Modern Treasury (B), Workato (D), Cockroach Labs (E) and Roblox (IPO).
It must not have been easy to win these deals
@altcap
🙏🏻👏🏻🙌🏻
Smartsheet: $530M ARR, 46% annual growth, $9.1B market cap -> Project Management Software with a spreadsheet style UI
Airtable: $130M ARR*, 80%* annual growth, $11.7B valuation -> Spreadsheet 2.0 with Project Management being one of many core use cases
EV = f (TAM, ARR, Growth)
I just booked my flights to India and am super excited to represent
@BatteryVentures
at
@SaaSBoomi
Annual 2024 🇮🇳
Will be visiting BLR/MAA/HYD and would love to meet SaaS founders with global aspirations! 👋
Software development has shifted from a “code-first” to an “API-first” approach; with 17M developers and 500,000 companies
@getpostman
is at the center of this renaissance.
Battery is stoked to back
@a85
and team to rewrite the history!
@chiraag_deora
I think there's enough wisdom on the internet in the form of blogs, books, videos, tweets that one can build a successful SaaS company out of anywhere by talking to customers regularly.
Avoid bullshit conferences, fake VCs and self proclaimed startup mentors.
First-gen Indian immigrants continue to crush in Silicon Valley. Congrats
@PrabirAdarkar
(Univ of Mumbai), on being named President & COO and
@rinukonda
(BITS Pilani) CFO of
@DoorDash
! 🇮🇳
If you have an offer to join a startup, I highly recommend speaking to VCs to discuss your options.
In today's market, many startups are overvalued, and the risk: reward ratio isn't what it used to be. Do your diligence!
Any successful stories of SaaS companies pivoting their GTM strategy from an enterprise heavy top-down approach to a bottoms-up, product-led motion in order to grow revenues faster?
To my knowledge, it's way easier to go upmarket if you start off with PLG versus the reverse.
@destraynor
@rahulvohra
@zoom_us
I think in SaaS we are reaching a point where anti-roadmap (room for innovation) of an incumbent can make you a unicorn. For example, Superhuman picked a customer segment (email power users) and built all the amazing features Gmail never built / de- prioritized. Same w/ Airtable.
A trend that I’m noticing lately is “Segment for X” startups.
One API to collect, manage and route your _____ data to hundreds of tools.
Some of the promising ones👇🏻
Met a founder today who was running out of money 6 months ago, asked him how did he manage to run the operations, his reply was..
“Well I bought some bitcoins and I sell little bit every month to fund my startup expenses”
Reminded me of Airbnb story.
#DoThingsThatDontScale
💡 If you have a job offer from a startup, ask for their most recent 409A valuation. Now compare that to their last round valuation. If it's ¼ or less, assume there's very little or probably zero upside on your stock options. Either negotiate hard for cash + bonus or walk away.
Incredibly happy and proud of my friend
@sperand_io
who joined Stripe last summer and just led a $35M Series B round into Check, a payroll API company
Speaks volumes about his conviction, ability to build trust with the founders and win deals. Kudos! 🙏🙌
📢 Analytics.js,
@Segment
's javascript library is getting an upgrade! Today, we're announcing Analytics.js 2.0 — the analytics library designed for site performance, extensibility, privacy controls, and more!! 🧵👇
Awestruck by Snowflake? Wait till 2021 when Stripe goes IPO and closes at $100B market cap.
SaaS has just entered its “growth stage”, let the good times begin 😉
Thanks to the rise of no-code/low-code tools, anyone who knows how to make a PowerPoint presentation can now build and publish beautiful software. That’s 500M citizen developers!!
A humble reminder that it’s still day one for the software economy :)
My friend shared a story of a realtor who made $250K in Crypto and decided to quit his job.
There are many ways to make money in a bull market, and everyone looks genius. Unfortunately, the same is happening in the VC right now; we've many speculators, only a few true investors.
GitHub was designed around code repositories, but the rise of APIs opened up an opportunity for Postman to become the "GitHub" for APIs. With 11 million developers and strong network effects, they are a compelling acquisition target for Microsoft/Google/AWS in the near future.
The good side of AI we all want :)
Call center agents hold tribal knowledge of their employer's products/services and empathize with customers' needs. AI can now free up their time, enabling career growth toward more fulfilling and rewarding roles.
Powerful slide by friends
@BlumeVentures
decoding the India opportunity 🇮🇳
Global investors get headfaked by the 1.4b figure, but in reality it’s 30m households (~$15K) who drive consumption. This number is 10% of total households (310m) but growing pretty fast.
A friend recently asked me what is
@Segment
's vision?
I told him that our vision is to improve the NPS of the Internet. It's easy to lose customer focus when you’re not talking to them in person. Segment is the listening API that enables businesses to become customer-obsessed :)
@sama
This is awesome! Have a small suggestion, instead of New Delhi, consider doing it in Bangalore. You will find more # of startups and developers! 🙂
@gdb
Give away SaaS for free (to acquire customers) but monetize via financial services (payments, lending etc.) seems to be a widely accepted fundraising narrative in emerging markets like India and LatAm.
Know any startup that has truly delivered on this promise? Genuine question.
Like me, if you are excited and looking forward to the first Monday of the new year, take a moment to feel a deep sense of gratitude.
It's truly a privilege to work on things you love and to do it with people who share equal passion, drive, and commitment :)
In the quest of PMF, startups often make the mistake of selling to wrong customers (myself included).
My learning: don’t be desperately selling to everyone. Instead, go after those who are *desperate to use your product*.
Remember, PMF is about finding the pull, not the push.
Did you know Shopify (all stores collectively) is the 10th most visited website in the US?
I’m convinced that the Shopify ecosystem is no longer a niche and can be the breeding ground for billion-dollar vertical SaaS companies like Klaviyo ($4B) and Gorgias ($300M).
.
@figmadesign
has become our online whiteboard for brainstorming ideas. It's not just designers but marketing, customer success, and sales folks are now on Figma. Don't be surprised if Figma reports Zoom-style DAU growth in the coming months :)
Another stellar quarter from $TWLO.
As companies get bigger, revenue growth starts to slow down. However,
@twilio
is an exception.
$2.6B ARR, 67% YoY growth and 135% net retention rate; amazeballs. Congrats to all Twilions!
When Segment set out to raise Series C in 2017, we had multiple offers. So instead of chasing the unicorn status, our founders settled on a more reasonable $600M valuation.
They cared about creating value for all shareholders, including employees!! Forever grateful to
@reinpk
🙏
Enterprises spend over $25 billion on Call Center/Customer Support software. Astonishingly, over half of this spending still goes to on-prem software vendors like Avaya and Mitel. Moreover, an additional $2-3 billion goes to peripheral vendors offering agent-assist solutions like…
As exits and IPOs become more common, I see an opportunity in bundling “legal + wealth management + tax advisory” into one offering to help employees navigate an IPO/acquisition event.
It's just a painful process otherwise.
2009: buy a domain, host a WordPress site, write some articles, do some SEO and call it an online media company
2019: buy a domain, build a Shopify store, hire a brand agency, find a supplier, dropship stuff, call it a D2C brand 😅
From
@okta
's earnings call: Auth0 will not only help Okta expand the market (customer identity > workforce identity), but also inverse their GTM motion. Okta was selling to IT and Security teams via top-down sales, but Auth0 won developers in a bottoms-up approach, like Twilio.
One week into 2021 planning, I realise that the real hypergrowth is maintaining 50% YoY revenue growth rate beyond $100M ARR.
To put things into perspective, what initially took us eight years needs to be accomplished in the next eight months 🤯
Since my last tweet:
• Shopify grew 4x crossing $100B in market cap
• Plaid got acquired by Visa for $5.3B
• Postman, Klaivyo, Coalition are now unicorns 🦄
• ZEIT re-branded to Vercel, raised $20M and now powers websites like Uber, Nike, and Starbucks
1/ Anyone who thinks SaaS companies are not impacted by COVID-19 is utterly ignorant. The severity of the impact depends on the diversification of customer base and is only a matter of time before it shows up in the books.
What most people don’t understand or appreciate enough — to be a successful founder, it takes ten years of commitment. And to be successful as a VC, it takes two decades of hustle and grind.
Now when you internalise this, you think and act differently :)
Why no one talks about the French SaaS Mafia? Quality of SaaS companies coming out of Paris is just incredible!
Aircall, Algolia, Front, Gorgias, Mention, PayFit, Spendesk.. the list goes on. cc
@alexrkonrad
👇🏻 Let’s talk about SaaS, Product-Market Fit and Customer-Focused Growth. Thrilled to be joining
@Accel_India
to share all my learnings with the founders :)
My advice to them: consider joining an early-stage startup with a similar risk profile but higher reward OR go to Big Tech. If you insist on joining a "unicorn," pick well; otherwise, you might end up in the Land of Hopes and Dreams.
I used to think a startup to selling to other startups, is like running a non-profit. But then I moved to San Francisco & learned that my office snack supplier raised $20M seed funding 🤔
Aspiring founders coming straight out of college should strongly consider working at a Stripe/ Twilio for at-least 1 year or even do 2-3 summer internships before they embark on their startup journey. It's an excellent way to learn the nitty-gritty of enterprise software.