SaaS 2024

1️⃣ Efficient Growth
ARR growth down to 32% (lowest in 8 Qs)

2️⃣ Retention > Acquisition
NDR drops to ~110% (was 120-130%)

3️⃣ Sales Efficiency
CAC payback 34 months

2025 Playbook: Efficiency, Retention & Profitability 💡
#SaaS #VC #Startups
@ICONIQGrowth

Is #AI ready for core processes? 🤔 Despite its hype, AI (better called Advanced Statistics) still faces hurdles. Key issues: trust in #ML’s decisions, high error sensitivity, and the need for control & stability. While great for repetitive tasks, most core use cases remain experimental. Caution!

Protect your unique #technology layer — it’s your strongest defense. In today’s fast-paced world, innovation moves quickly, and staying ahead is tough. Identify where you depend on third parties, build proprietary tech that’s hard to copy, and defend it.

Read more: three.vc/blog/5-predi...

5 Predictions for 2025🚀
1️⃣ AI Bubble & Correction: AI market may face a correction as profits lag.
2️⃣ #Hyperautomation: 30% of enterprises streamline with #AI.
3️⃣ AI in #Dev: 40% of software tasks AI-driven.
4️⃣ No #AGI: Still task-specific AI.
5️⃣ Compute Power Surge: Density up, costs down.