To many of you, it may feel like tougher times in SaaS
One thing I can tell you:
Things don't bounce back overnight
But they do bounce back fast
— Jason ✨Be Kind✨ Lemkin (@jasonlk) December 30, 2022
So this last year was one of so much change. Change at a pace we haven’t seen since 2008, when the world of SaaS was just so, so much smaller.
Just 12 months ago, Bitcoin was at near-highs, as were many SaaS stocks, and multiples. And then … crash.
The SaaS public markets fell -52% in just one year. Venture fell even further, even if mark-ups in many cases weren’t taken. Interest rates and inflation exploded out of nowhere.
But it’s worth remembering just 2 things. First, this all happened in just 1 year. There have been multiple other “SaaS Crashes” in the past 15 years and we’ve always bounced back relatively quickly. Not overnight, but faster than we thought.
And it’s worth remembering even with much more buyer scrutiny today, SaaS spend overall still grew at epic rates in 2022 and will grow substantially in 2023 as well. SaaS spend and SaaS software didn’t shrink in this crazy year. Market valuations did, no doubt. 🙂 But not the overall trends of both SMBs and enterprises buying more SaaS than ever.
So if things are great in your business, then well … great. But if things are tougher for you in SaaS than 12 months ago, well, then remember this too shall pass. It was a crazy, crazy world just a year ago. Everything was on fire. And then … it wasn’t. And in another year, we’ll be in a whole new world, too.
I bet it’s a better one, and a bigger one for SaaS, than it is today.