Hi and welcome back to our routine early morning look at private companies, public markets and the gray space in between.
This morning we’re speaking about churn– the bane of software-as-a-service (SaaS) business small and big– in the brand-new world we discover ourselves in. SaaS companies, from start-ups to huge public firms, have actually built their businesses under strong financial conditions. What takes place to the market now that the worldwide economy has struck pause, layoffs are piling up throughout national economies and venture capital is slowing?
It’s easy to say that churn will increase; some customers will close, cancelling agreements (improving gross churn) while other customers will slow software spending plan development (limiting net retention). How bad will things really get? To get a deal with on what’s next for churn, I talked to the CEO of CrowdStrike, a public SaaS business; the CEO Gainsight, a quickly-growing personal SaaS business who just recently ran a study on the subject; and Denis Barrier. a partner at venture capital company Cathay Innovation. We also have fresh data to check out from Cledara, a start-up that helps other companies control their software spend.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.