Insights into the Future of SaaS in 2024 with David Sacks

The future of SaaS in 2024 is heavily focused on AI technology.

Craft Ventures, with assets under management of 3.3 billion, is predominantly investing in AI-driven B2B startups.

There are three categories of AI opportunities: infrastructure, co-pilots for professional job categories, and pre-AI SaaS apps that can be enhanced with AI functionality.

📈 The financial markets peaked in November 2021 and started declining in Q2 2022 due to the Fed's policy.

💼 Venture capital firms are expecting to do one and a half big deals per quarter and a couple of seed deals per quarter.

💰 The mortality rate for seed rounds is currently high, around 80%, making it tough for investors.

💡 Investors are becoming more skeptical and are willing to pay less for incremental proof before investing.

📉 The correction in valuations started with late-stage rounds due to liquidity drying up in the market.

📌 Seed funding landscape is still not fully corrected, especially for successful founders.

🔍 Low-margin SaaS businesses and tech-enabled businesses with physical components have faced challenges.

💰 Software startups have forgiving operational efficiency, while businesses with physical components require extensive operational expertise.

📊 The SaaS industry has experienced a recovery in both public and private markets, indicating a bottoming out.

⏳ Although there are signs of improvement, many companies still face deferred pain and financial challenges that may lead to restructuring or running out of funds.

💼 Startups in the SaaS space are facing seat contractions and a merging of categories, leading to a more discriminating buyer base focused on cost-cutting.

📊 The software industry has experienced a recession over the past year or two, but there are signs of improvement in recent weeks.

💼 It is unlikely that the software industry will return to its peak in 2021, as the bubble was similar to the dot-com bubble in 1999.

🚀 Despite the challenges, software remains an integral part of the economy and will continue to grow, especially with advancements in AI and new platforms.

🔥 Founders need to be cautious about burning through too much capital without a solid plan.

💰 Startups should focus on capital efficiency and consider their burn multiple as a measure of efficiency.

📈 The burn multiple should decrease over time as the company matures and becomes more efficient.

💡 It is important for SaaS startups to maintain a low burn multiple during a tough period to increase the chances of success.

📊 SAS Grid is a dashboarding tool specifically designed for SAS companies that automates the calculation of metrics and eliminates the need for a dedicated data analytics team.

👨‍💼 SAS Grid, founded by David Sacks and Ethan Ruby, provides convenience and value to SAS companies by offering a verticalized business intelligence tool.