SaaS and Cost Cutting vs. Sales

Today’s two great VC posts are from David Cowan and Stu Phillips.

David writes on The Prospects for SaaS.  He also discusses his mixed experience with his squash gnocchi.

Stu writes on The other side of cost cutting.  While cutting costs is important if you are trying to become profitable, Stu suggests that everyone should make sure they are focusing on the other side of cost cutting – revenue generation.

  • LAG

    While the broad assessment of SaaS and other software vendors is in line, you fail to capture companies that will thrive. The SaaS companies in Bessemer's portfolio and/or companies mentioned in the post all have one thing in common. Each one of these companies are “reactive” in nature. In other words they don't proactively generate new business. Outbound software tools that generate real sales are doing well today and have been for some time. The SaaS company I started during the last market crash is alive and growing nicely. Though I have moved on from the company people inside tell me that the past several months they are growing 20% monthly in relation to YoY.