Software spending pressure decreases, New data from Battery Ventures indicates. According to the venture capital firm’s survey of 100 C-suite leaders at companies with about $35 billion in annual IT spending, contract approval timelines are no longer stretching longer, and the focus on cutting IT spending is increasing. SaaS in general is fading.
For startups selling software, the market may be stable.
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However, the same data set suggests that bottom-up growth – the main method for startups to sell to larger customers – is under increasing pressure. Selling to an individual, and later to a team, and perhaps an entire company in time, is one way small businesses can obtain large, profitable accounts. But the path to such sales may narrow depending on the battery.
TechCrunch+ has written extensively about the bottom-up sales approach often during the pandemic, when it and product-led growth in general have become hot terms. But like many things that have become big during the pandemic and the economic turmoil that has followed it, what goes up inevitably comes down.
This morning we dig into battery sales data from the bottom up and conclude with some notes on the rest of what the project group found in its latest survey. The thing is, if you’re selling software or AI-related tools, you’ll likely have a better year than your friends who are building non-AI products.
Cheers!
For a long time, developers were often free to choose which software solutions they wanted to use, especially if they were chosen for testing purposes. This activity was a Trojan horse for B2B startups who could then approach chief developers to get enterprise-level deals for their software. But it seems that this road has been closed.