The secrets of unicorns: Software-as-a-Service and the billion-dollar valuation

My Post (9).pngThere is a common thread among the world’s “unicorns” (companies that have risen to a billion-dollar valuation in just a few years), which is that most unicorns operate primarily as Software-as-a-Service-based (SaaS) businesses.

This begs two questions: what has been learned by these highly successful companies, and what are the lessons for those that aspire to become unicorns themselves?

In 2018, EY conducted a survey of 200 executives with deep experience in SaaS-based operations. These are the decision-makers on SaaS — all respondents are ranked director or above, and approximately a quarter are from the C-suite. This is what we discovered.

  1. Move quickly into SaaS

Our survey executives were asked to reveal the one thing that, looking back, they would have done differently. Their foremost answer: they would have moved more quickly into SaaS (25%). At the same time, many wish that they had pivoted and innovated more quickly (13%). Another factor (10% of respondents) was to have accelerated their entry into the market with an acquisition. – Read more