In 2022, you could blame the markets
In 2023, you could blame "macro" impacts
In 2024, you could still claim we were in a "downturn"In 2025 — you've run out of excuses
— Jason ✨👾SaaStr 2025 is May 13-15✨ Lemkin (@jasonlk) February 4, 2025
The “downturn” is over in SaaS and B2B. It’s over — if there was one at all in your category. And if you haven’t recovered from it, it’s time to be honest. It’s you.
#1. 💸 Venture Capital is Back.
It’s all flowing into AI and Growth, but it’s back. As fast and as furious as 2021. More here:
#2. 🚀 HyperGrowth is Back.
Yes, it’s often AI fueled SaaS leaders. But so what? Why isn’t that you? Why can’t you be the new leader in legal, in accounting, in devops, in search, in support, in whatever?
#3. Massive Spend is Going to AI-Related Cloud
Grab some of it.
Gonna be a good year pic.twitter.com/2BCETdSUpi
— Jason ✨👾SaaStr 2025 is May 13-15✨ Lemkin (@jasonlk) February 7, 2025
#4. 👬 Competition is Way, Way Up.
AI has created 100s and even 1000s of new competitors in many categories. Did you step up? Or are you
#5. 🤖 AI Has Unlocked More B2B Budget
Per Morgan Stanley, 50% of the budget for AI is new. Did you grab some?
The thing that is underpriced right now in software is that AI will meaningfully increase the TAM of many software categories. With AI Agents that do work for people, from coding to reviewing contracts, these are brand new dollars in software spend that didn’t exist before. https://t.co/e1NBd87S0f
— Aaron Levie (@levie) January 16, 2025
#6. 🏃 Public SaaS Companies Are Growing Faster Again
Often just a little faster than 2024, but still faster. For those that were impacted, Q3’24 marked a low point in many cases. Not all, but many.
Monday crushes it:
▶️$1.1B ARR
▶️32% Growth
▶️15% Non-GAAP Operating Margins
▶️112% NRR
▶️ $16.4B+ Market CAp pic.twitter.com/m3pjcKreI7— Jason ✨👾SaaStr 2025 is May 13-15✨ Lemkin (@jasonlk) February 10, 2025
#7. The Ones That Can’t Keep Up Are Being Left Behind
The pace of innovation has accelerated. Those still basically selling the same products as in 2021 are falling far behind.
#8. Simply Getting More Efficient or Profitable Is Not The Answer
This is a tactic, not a strategy, for 95% of us. Getting more efficient may be necessary to IPO, or to stretch your cash. But without more growth, it usually gets you nowhere in the end.
It’s not 2021 Easy for anyone outside of the hottest AI-fueled start-ups. But the “downturn”? It’s over.
If the “downturn” is not over for you, this might be your last, best chance to step it up.
Start moving faster. Today.
(image from here)
