It is the best of times for SaaS, what could go wrong?


Is the SaaS market saturated?

What happens when we hit the next recession?

I don’t want to end this issue with a downer but Rory O’Driscoll (partner at Scale Venture Partners) offers some thoughts about what might be on the horizon for SaaS markets and what to do about it.

3 lessons…

  • Try to develop software that is used in core business processes (eg accounting systems, CRMs). It’s hard to replace. If you’re integrated into 2 or 3 other systems, it’s unlikely you’re going to churn even in a down market.
  • If you have a “nice to have” product, create a “must have” product that you can sell to the same customer base. Nice to haves are the first to be axed in a downturn.
  • Target customers that are recession proof.

On the latest episode of the SaaS Revolution Show, we host Rory O’Driscoll, Partner of Scale Venture Partners and talk about the things he believes SaaS entrepreneurs should be mindful of even as the SaaS industry seems to be thriving.

Originally from Ireland, Rory moved to California 28 years ago. For 25 of those, he has been investing in enterprise software with Scale Venture Partners and its predecessor. In that time he has learned a lot of things about the world of venture funding, starting with the fact of just how deceivingly easy all of it seems, yet how difficult it is to make the right decisions about entrepreneurs and their companies and have the conviction to see them through the tough times.  

Rory has also learned to count his blessings and remember that a lot of the successful bets he has made have a lot to do with luck. That humbleness is what keeps him cautious even in the best of times for SaaS and in this interview he shares some of his reservations about valuations, market saturation, the increasing competition, making the economics work and others.

Listen on to hear:

  • How worrisome is the market saturation in SaaS
  • How other companies are dealing with that issue
  • How to become recession proof

Rory O’Driscoll is one of many excellent speakers we will host at SaaStock19 in Dublin this October alongside Claire Hughes Johnson, COO, Stripe, Leela Srinivasan, CMO, Survey Monkey, Kathryn Petralia, COO, Kabbage, and Girish Mathrubootham, CEO, Freshworks. Grab a ticket now at the best possible price.