saas.wtf

Sunday Read: Do AI coding tools actually deliver on their productivity promise? Spent a few hours this week digging into the latest research on this topic. Cursor just hit $500M ARR barely 2 years after launch. GitHub Copilot crossed 20M users. The demand is massive - market expected to grow 25-30% annually. But with all the hype, are software engineers actually more productive using these tools? A question I've been asking myself for a while. Turns out it's far more nuanced than anyone wants to admit. The research paints wildly different pictures, and the reality doesn't match what the marketing materials suggest. Some studies show significant gains. Others reveal developers are actually slower while believing they're faster. The cost equation is getting complex too - AI-skilled devs now command up to 50% salary premiums while tool subscriptions hit $1,000+ per month. Check out the full research breakdown in this week's saas.wtf article. Would love to hear your feedback on the content piece and what you're seeing in practice! 🙂 #saas #ai #coding #cursor #github #developers

In this insightful conversation Dirk Sahlmer, Head of Origination at saas.group shares best practices for preparing for the exit of your company to get the best deal. Whether you're a bootstrapped founder navigating the complexities of selling or a VC-backed founder considering your next move, this episode is packed with valuable insights. Here's a sneak peek of what you'll learn: 💡 The top three mistakes founders make when selling their business 📖 How to prepare for the exit of your company to maximize your returns 🔢 Realistic expectations around valuation multiples from strategic and other buyers Thinking about selling? This episode offers a unique perspective from someone who sees numerous deals and understands what makes a successful exit. 🎧 Link in comments. #SaaS #Startups #M&A #VentureCapital #Entrepreneurship #Podcast #ExitStrategy #VentureEurope

4 months ago, Dirk Sahlmer dropped a comment under my post. At that moment, I had just published a valuations cheat sheet — covering both VC valuations and M&A (exit) valuations. Dirk, a guy who’s talked to 2,500+ founders about exits, valued thousands of companies, and actually acquired quite a few himself, said… it was confusing. And that’s when the lightbulb went off. We needed a cheat sheet just for M&A valuations. And we needed to make it together. So, 4 months later, here we are. TL;DR: ▪️ 4 metrics that drive your valuation most: > Gross Revenue Retention > ARR Growth > EBITDA Margin > Rule of 40 ▪️ 4 qualitative factors that matter most: > Delivery model (cloud = higher multiple) > Pricing model (recurring = highest multiple) > Product/Position (more differentiation = higher multiple) > Market attractiveness (vertical rocks) ▪️ Median ET/TTM multiples moved from 5.3 in Q3’24 to 6.0 in Q4’24. Give it a look — hope it will help you figure out your valuation. 👇🏼 If you need an HD version, leave a comment, and I'll DM it to you. And May The Profit Be With You 💚