SAAS Industry Update – What are the big players saying?

Noteable & Quateable:

“Something that potential investors must understand: we do not chase revenue as the
primary driver of our business. Shopify has been about empowering merchants since it
was founded, and we have always prioritized long-term value over short-term revenue
opportunities. We don’t see this changing.”

Shopify Co-Founder, Tobias Lutke

“The future of SaaS will be defined by doing more with less. Today, technology is
proactive but tomorrow technology will be predictive.”

SalesForce Head of Technology, Chris Makkreel

“Today, 5 percent of the world’s [gross domestic product] is spent on tech. In 10 years’
time—in fact, this COVID crisis may have accelerated it—that’s going to be 10 percent.
We are lucky enough to be in an industry that’s going to double, and the partner
opportunity therefore is clear.”

Microsoft CEO, Satya Nadella

Founders Advisors continues to field questions from clients around ASC 606 and how it applies specifically to SaaS revenue. Popular SaaS blog Chargebee provides a high-level overview of the accounting standard in terms that apply specifically to the SaaS model. In addition, the article focuses on how ASC 606 affects the tracking of key metrics like MRR, an important valuation benchmark for SaaS businesses.


Valuations for the global SaaS market are higher than ever before. PwC’s Technology Deals Insights makes the point that, although deal volume was down in Q2, valuations were up for the second-highest transaction value per deal in the past 5 years. The pandemic forced companies to embrace cloud-based offerings which continues to benefit the SaaS industry in terms of deal activity.


Companies across many industries are expected to spend more on software this year. Jared Council of the Wall Street Journal states that as pandemic restrictions ease and the economy continues to recover, tech spending is expected to rise to record rates. Additionally, Deloitte’s Technology Market Outlook highlights growth opportunities throughout the technology industry.

You can read the full report here.