There’s been a lot of panicked discussion lately in SaaS. The Venture Capital market has adjusted downward, and SaaS businesses everywhere are feeling the effects.
But Ajay Agarwal says there’s no need to panic. He is the Managing Director for Bain Capital Ventures in the Bay Area, focusing on early-stage application software and SaaS investing. His portfolio companies include SaaS standouts like Optimizely, Gainsight and SendGrid, and he’s seen firsthand the challenges of growing a company. Before joining Bain Capital in 2003, Ajay was head of sales and marketing at Trilogy, where he grew annual revenues to $300 million.
He explained that the reality of the market has changed, but it’s not the end of the world.
“It’s a great time to start companies because when times are more difficult, fewer people decide to become entrepreneurs,” Ajay said. “There’s less competition for talent, less competition for funding, and it’s less likely that if your company gets funded, five other copycat companies will get funded.”
In the latest episode of Ramp, Ajay explains why the SaaS market is changing, and how your business can not only survive, but thrive.
Though SaaS leaders shouldn’t be overly concerned, that doesn’t mean nothing is going to change. Ajay acknowledged that the changes in the funding market mean the way SaaS businesses are run has to change.
“Typical SaaS companies today are raising over $100 million dollars,” he said. “It’s insane the amount of money required. I think that world is over, at least for the time being. The rounds are getting smaller, the valuations are coming lower. Early stage companies can’t count on that funding coming back. They have to learn to build their businesses more efficiently.”
In this exclusive 23 minute episode, Ajay shared:
- The qualities he looks for in early-stage founders
- The metrics that drive SaaS growth
- The potential for machine learning in SaaS
- …and much more
Learn what today’s Venture Capital changes mean for your SaaS business in the latest episode of Ramp.