The Wire

Real-time updates from ANZ tech sales

about 1 month ago
News

SaaStr runs AI marketing VP for $13.42 per hour, $94 monthly

## The Real Cost of Running an AI Sales Agent Jason Lemkin, founder of SaaStr, published actual operating costs for his AI marketing VP this week. One hour of work: $13.42. Monthly cost to run the agent: $94.51. That single hour included 125 actions, reading 2,463 lines of context, and changing 652 lines of code. No human VP executes at that speed. California minimum wage is $16.90. Fast food workers start at $20. You cannot legally hire anyone for what this agent costs per hour. The comparison that matters: a human VP of Marketing runs $300k fully loaded, about $145 per hour across 2,080 working hours. That is 10x the cost for a fraction of the measurable output. ## Building Versus Running The $13.42 hour was expensive: frontier model coding with multiple subagents. That is the build cost. Running cost is different. Lemkin's full AI stack, six production agents handling 1.9M requests monthly, costs $2,300 total. His two AI VPs combined: $254.06 per month. The architecture makes it cheap: small models for simple tasks, cached reads instead of live API calls, scheduled jobs instead of interactive loops. Most teams default to the biggest model for everything. That drives cost up 30 to 50x. Match model size to task difficulty and the running cost drops to cents. ## What This Means for Sales Hiring The bottleneck is no longer budget. It is knowing what work to point the agent at and how to specify it. Most sales teams have not built that muscle yet. SaaStr grew without a traditional sales team. Cursor hit $2B ARR in 18 months with zero AEs. The question is not whether AI agents can replace SDRs or BDRs. The question is which tasks justify human comp and which do not. Base $80k for an SDR, $120k for an AE. OTE $160k to $180k. Monthly cost per rep: $10k to $15k minimum. An AI agent doing qualification, research, and outreach sequencing runs $100 to $300 monthly. The math is clear. The hard part is the transition.

SaaStr
about 1 month ago
News

When to hire internal recruiter: 5 hires per quarter breaks even at $60k

## The Break-Even Point Hire a full-time internal recruiter once you are hiring 5+ people per quarter consistently. That is Jason Lemkin's threshold, and the math checks out. If you are paying 20% placement fees on $150k hires, that is $30k per placement. An internal recruiter costs $60-80k fully loaded (salary, super, tools). At 2-3 hires per quarter, you break even. Beyond that, internal becomes cheaper and way better. ## Why Internal Wins Beyond Cost External recruiters spray and pray. They do not know your culture, your actual ideal candidate profile for roles, or what you are really trying to build. An internal recruiter focuses on exactly the profiles you need and can source proactively instead of reactive placements. Lemkin points to Nebius (GPU cloud business) as an example: they prioritised in-house recruiters specifically because external ones could not find the right talent. External recruiters would have flooded them with mediocre candidates. ## When to Still Use External Use external recruiters early, especially for hard-to-fill roles: your first VP Sales, a machine learning engineer, a specific domain expert. You are not scaling fast enough yet to justify salary plus ramp time for an internal person. Your network will only take you so far. But once you hit that inflection point where you are hiring regularly, bring someone in-house. Too many candidates to process, too many meetings to schedule. You do not want your CTO doing all of that. Not once you are hiring more than 1 or 2 devs at a time. ## The ANZ Context This threshold applies cleanly to ANZ markets where placement fees typically run 18-22% for sales roles. Melbourne and Sydney AE hires averaging $140-160k OTE translate to $25-32k per external placement. Internal recruiter costs in ANZ run $70-90k fully loaded, making the break-even point consistent with Lemkin's US data. For B2B startups scaling post-Series A, this is the hidden headcount decision that impacts your entire hiring efficiency. Get the timing right and you save 6 figures annually while improving candidate quality. Get it wrong and you are either overpaying external fees or carrying recruiter overhead before you need it.

SaaStr
about 1 month ago
News

Albanese launches federal AI Office, no vendor clarity yet

## Federal AI Office launches, procurement details still unclear Prime Minister Anthony Albanese is establishing a federal Office of AI within the Department of Prime Minister and Cabinet, announced in a University of Sydney speech on Wednesday. The office will coordinate AI standards and regulation across government agencies. The move follows state-level offices already operating: South Australia launched the country's first AI office with $28 million and five staff, while NSW established its own within Digital NSW for a two-year initial period. ## What it means for vendors The speech won't include specifics on copyright law changes or government AI procurement guidelines, despite vendor requests for clarity. AI company Anthropic has sought copyright clarification but hasn't requested an exemption. Albanese will argue that "the right guardrails will attract business" and provide "greater clarity and speed for approvals, and a streamlined process for verifying compliance." Worth noting: that's positioning language, not procurement process detail. The federal AI policy (v2.0) took effect 15 December 2025, mandating governance structures for non-corporate Commonwealth entities. Vendors selling into federal government now face a coordinated approach rather than agency-by-agency negotiations. ## Data centre play The office supports Australia's push to become a global AI intelligence hub and attract data centre infrastructure investment. Amazon and Microsoft have both announced Australian AI investment plans through 2026, making regulatory clarity a revenue factor for enterprise sales teams targeting government and regulated sectors. The Attorney-General is running consultations on copyright and artist protections for AI training. Treasurer Jim Chalmers holds responsibility for AI's role in the productivity agenda. For vendors, this means multiple decision-makers and no single procurement pathway yet. ## The sales reality Government AI vendor selection processes remain undefined. The office coordinates policy, it doesn't run RFPs. Sales cycles into Australian federal government typically run 12-18 months. Add regulatory uncertainty and you're looking at longer qualification periods before deals move. The office operates under PM&C with Prime Minister-level oversight, signaling political priority but not budget allocation or vendor shortlists. Enterprise AEs targeting government: qualify hard, expect extended timelines, and watch for actual procurement frameworks rather than policy speeches.

Startup Daily
about 1 month ago
News

Albanese creates Office of AI, parks copyright and data centre rules

The Albanese government is centralising Australia's AI strategy with a new Office of AI inside the Department of Prime Minister and Cabinet. Seven months after releasing a National AI Plan that relied on voluntary compliance and existing regulators, the government is now creating a dedicated office and national framework for AI standards. The shift matters for sales teams already using AI tools. The government has been running a six-month trial of Microsoft 365 Copilot across the public service, making Australia one of the first governments to deploy generative AI at scale. But the new framework details are unclear. What is clear: copyright exemptions for AI training and data centre regulations are paused. The government cited concerns from creatives about protecting Australian intellectual property. For sales tech vendors, that means uncertainty around how AI models can use local data. The government has committed $101 million over five years for critical technologies, including grants for SMEs to adopt AI. The broader National AI Plan aims to contribute $600 billion to GDP by decade's end. Over $460 million in AI funding has been consolidated through initiatives like the AI Accelerator. Anthropoc signed an MOU with the government, pledging support for data centre infrastructure and $3 million to medical research. But regulatory clarity remains limited. For sales teams evaluating AI tools: the policy gap continues. No standalone AI Act. No mandatory guardrails. Existing privacy and consumer laws apply, but sector-specific guidance is still being improvised. The Office of AI will coordinate standards across agencies. Headcount and budget details are not yet specified. The office will draw on existing government staff. The bottom line: AI is being treated as infrastructure and economic engine, but the rules for commercial use remain unresolved. Sales leaders using or selling AI tools should track how the framework develops, particularly around data use and copyright.

SmartCompany
about 1 month ago
News

Riverside pricing gap: $24 solo seat jumps to $500 for two accounts

# Riverside pricing gap: $24 solo seat jumps to $500 for two accounts Riverside, the podcasting platform used by Disney, BBC, and Spotify, has a pricing problem that sales leaders should recognise: a 20x gap between self-serve tiers that kills deals before they reach the pipeline. Single seat: $24/month. Two linked seats: $500/month prepaid. That is $6,000 upfront for functionality that customers would pay $100-200/month for. The company lost at least one customer to this gap. They never knew it happened. No CRM entry, no lost deal analysis, no quota impact. Just silent churn from a pricing structure that assumes everyone who needs two seats can write a $6k cheque. ## The sales team created the gap This happens when sales pushes product to price business editions around what they can profitably sell. Minimum deal size is often $5,000-6,000 annually because that is where the unit economics work with human touch. Fair enough. But the customers between $500 and $5,000 in annual spend do not disappear. They just buy from someone else or stay on Zoom. Algolia, the search API company, had the same issue. Free tier, cheap basic usage, then a massive jump to enterprise pricing. When they added a mid-tier plan, revenue increased 15%. Not from upselling existing customers, but from capturing deals that were falling through the gap. ## What this means for your comp If your product has a pricing gap, your quota is harder to hit than it should be. You are losing deals that never show up in Salesforce. Leadership sees conversion rates and assumes the market does not want the product at scale. Actually, the market does not want to 20x their spend overnight. Riverside raised $30 million in Series C in December 2024, led by Zeev Ventures. They rebranded from Riverside.fm to Riverside in May 2026, positioning as an enterprise studio platform. Strong product, major clients, solid funding. But if 5-10% of potential revenue is leaking through a pricing gap, that is real money. For sales teams: ask your pricing team what happens to customers who outgrow self-serve but cannot hit your minimum deal size. If the answer is "they churn" or "we don't track that," you have a gap. For pricing teams: the deals your sales team cannot see are still deals you are losing.

SaaStr
about 1 month ago
News

Feds launch Office of AI: what it means for tech sales hiring

## Federal AI office lands, brings structure to chaos Prime Minister Anthony Albanese announced a federal Office of AI today, housed in the Department of the Prime Minister and Cabinet. The office will coordinate AI policy across government, co-design national standards with Industry Minister Tim Ayres, and work alongside the new AI Safety Institute (launching early 2026 with $29.9 million in funding). This is not another state initiative. South Australia launched its Office for AI with $28 million and 5 staff. NSW has one inside Digital NSW. The federal version consolidates over $460 million in existing AI funding, including $39.9 million for the National Artificial Intelligence Centre and $1 billion under the National Reconstruction Fund. ## What this means for sales teams For tech companies selling into government: you now have a single policy body setting the rules. The Office will run Proof of Value pilots, meaning agencies get funding to test AI tools. That creates enterprise pipeline if your product clears compliance. For sales leaders watching headcount: AI adoption is accelerating, not slowing. The government is backing talent programs (Next Generation AI Graduates) and positioning Australia as a global AI leader. Competitors in the US and EU face fragmented governance. ANZ gets streamlined standards. The hard question: will this create net new sales roles or automate existing ones? Government adoption of AI tools historically drives enterprise demand, which means more AEs selling compliance-ready solutions. But it also means procurement teams using AI to evaluate vendors, shorter sales cycles, and potentially fewer SDRs as inbound gets smarter. Albanese said AI is "a bigger challenge and opportunity than social media." For sales professionals, that translates to: the playbook is changing. Companies that crack government AI procurement early will scale fast. Those waiting for clarity will lose territory. The Office is hiring a Director for Artificial Intelligence now. Recruitment underway. Watch for comp details, because that number will set the benchmark for public-sector AI leadership roles across ANZ. ## What to track National AI standards legislation drops early 2026. That is when compliance requirements get specific and enterprise sales cycles either accelerate or stall. The $29.9 million AI Safety Institute will enforce ethical guardrails, meaning your pitch needs a safety story, not just ROI. Data centre operators now face legal obligations: underwrite power supply, cap household price increases, minimise water usage. If your product relies on compute-heavy AI, factor those costs into your pricing model before prospects ask. Bottom line: federal coordination means faster adoption, clearer rules, and new enterprise pipeline. It also means automation pressure on roles that do not require human judgment. Position accordingly.

Startup Daily
about 1 month ago
News

Gridcog closes $12.5M Series A, expands Perth energy-tech team

## The Deal Gridcog closed a $12.5 million AUD Series A led by ABB Electrification Ventures, with co-investment from Axpo Ventures, DNV Ventures, and Verbund Ventures. Existing investors AlbionVC and Clean Energy Finance Corporation participated. The Perth-founded startup previously raised $6.8M total, including a $6.4M late-seed round in March 2024. ## What They Do Gridcog builds SaaS energy modelling software for renewable projects: solar, battery storage, EV charging, and wind. The platform simulates and optimises project economics, helping firms de-risk investments. Clients include Shell, Origin Energy, and Mitie. The company claims it is the only platform integrating physical and financial optimisation for energy investors. Founders Pete Tickler and Fabian Le Gay Brereton launched the business in 2020. Both are repeat energy-tech founders. ## The Team Gridcog employs 32 people split between Perth and London. The company maintains its corporate office in Perth and established a London headquarters to target UK and European markets. Specific sales team size and executive structure are not disclosed. The business operates B2B, selling into energy sector firms. ## What It Means This is energy-tech infrastructure software, not traditional sales automation. The B2B motion involves longer sales cycles and technical buying committees. If you are an enterprise AE with energy sector experience, this is the type of vertical SaaS that needs quota carriers who understand complex stakeholder management. The Series A signals international expansion: Australia, UK, Europe now, US in approximately 18 months. That timeline suggests they will scale the sales team to support market entry. Worth noting: strategic investors ABB, Axpo, DNV, and Verbund bring distribution potential alongside capital. That can accelerate pipeline, but it also means sales reps need to manage partner channel dynamics. ## The Context Gridcog competes in energy analytics and project simulation software. The company positions itself as specialised techno-economic modelling, differentiating from broader energy management platforms. ANZ energy-tech presence remains anchored in Perth, where the company leverages local expertise. The dual headquarters model (Perth operations, London commercial hub) is common for ANZ startups targeting European enterprise buyers. Funding environment: energy-tech Series A deals remain active despite broader startup slowdown. Corporate venture arms are writing cheques when they see sector-specific infrastructure plays.

Startup Daily
about 1 month ago
News

ANZ startups planning $15M AI spend face token pricing trap

## The subsidy won't last AI token pricing is running the Uber playbook: artificially low costs to lock in dependency, then correct to real economics once you cannot leave. OpenAI is pulling $20B revenue against $600B in infrastructure commitments over four years. That gap closes on your invoice. ANZ businesses are planning a median AI spend of $15M, 20% above the global average of $12.5M. 97% of IT leaders are expanding AI agent use, 91% call it vital for competitiveness. Yet 69% feel they are moving too slowly. That fear is driving overcommitment to tools with unsustainable pricing. Anthropic's recent price increases are not an outlier. They are the correction starting. When token costs rise 2x to 10x, your AI-driven sales stack's unit economics collapse. The SDR automation that penciled at current pricing becomes a loss leader. The account research tool that saved 10 hours per AE now costs more than the salary it replaced. ## Sales teams are exposed Sales orgs are early AI adopters: conversation intelligence, email sequencing, account research, pipeline forecasting. These tools wrap frontier models (OpenAI, Anthropic, Google). When the underlying API cost doubles, your vendor passes it through or folds. Either way, your workflow breaks. Stress-test your AI spend against 10x token costs. If your sales automation collapses at 3x pricing, you are building on subsidy, not strategy. ANZ startups face pressure to move fast, but speed without cost modeling is just expensive lock-in. AWS, Azure, and Google Cloud control 80% of ANZ IaaS. Sovereign options like Macquarie Telecom and NEXTDC exist but lack scale for frontier model training. Your vendor's infrastructure costs are rising, and they will not absorb them. ## What this means for GTM If you are hiring SDRs based on AI-assisted productivity assumptions, model what happens when your tooling costs triple. If you are pitching AI-driven sales efficiency to your board, include a scenario where token pricing corrects to sustainable economics. The bargain is not real. It is customer acquisition spend at scale. Plan accordingly.

Startup Daily
about 1 month ago
News

21% of ANZ workers engaged: your sales team is probably quitting

# 21% of ANZ workers engaged: your sales team is probably quitting Gallup's latest poll puts ANZ employee engagement at 21%. That means 79% of your sales floor is mentally checked out, going through the motions, or actively job hunting. The number dropped from 23% last year, hitting the lowest level since 2020. The damage: $220 billion in lost productivity across Australia alone. Globally, disengagement costs $10 trillion. For sales leaders, the numbers get worse. Nearly half of ANZ workers are actively looking for new roles. Another 67% are quiet quitting, doing the minimum to keep the paycheck coming. Presenteeism alone costs $34 billion annually in Australia. ## AI won't save you The problem isn't your tech stack. Research from EnterpriseWorks found the average Australian organisation now uses 305 systems, with only 16% centrally managed. Sales teams spend 45% of their week in meetings, yet less than half of those meetings actually move deals forward. Another 42% of employees spend significant time on manual reporting. For senior leaders, that jumps to 62%. Adding AI tools to this mess amplifies dysfunction, it doesn't fix it. ## What actually drives engagement Gallup's data is clear: 41% of engaged employees cite strong leadership as the reason. Another 43% point to reward and recognition. Only 23% of ANZ employees feel appreciated at work, down from 38% last year. That recognition gap is brutal for sales teams, where comp and acknowledgment are core retention levers. Meanwhile, just 26% of managers feel adequately trained for their role. Your front-line sales managers are carrying quota, running pipeline reviews, and coaching reps without proper support. No AI dashboard fixes that. ## The sales retention angle ADP Research puts ANZ engagement even lower at 16%, with remote workers at just 7%. If your sales team is hybrid or remote, they're likely disengaged at levels that guarantee turnover. Why reps quit: lack of growth opportunities, toxic team dynamics, burnout, and feeling disconnected from leadership. The symptoms are visible: missed check-ins, declining activity metrics, reps who stop asking questions. By the time they give notice, you've already lost them. ## What works Pulse surveys, stay interviews, and recognition programs beat annual engagement surveys. Manager training beats new CRM features. Psychological safety beats productivity theater. The fix isn't technological. It's structural. Cut the bloated meeting culture. Train your managers. Recognize performance when it happens, not six months later during reviews. Give reps clarity on how their daily work connects to company goals. Gallup found 83% of employees understand strategy, but only 51% believe their work actually connects to it. Sales leaders who worship AI while ignoring these fundamentals will keep bleeding talent. The market's too competitive, and your reps have options.

Startup Daily
about 1 month ago
News

ESGAgent.ai closes $450k seed, total funding $1.7m

Brisbane-based ESGAgent.ai closed a $450k seed round led by Japanese VC DNX Ventures. Total funding now sits at $1.7m including grants. The startup automates ESG compliance for heavy industry: mining, energy, manufacturing. Think mandatory climate disclosure, emissions reporting, workplace safety, modern slavery compliance. The platform replaces spreadsheets and consultants, cutting reporting timelines from months to hours. Founder Shan Vahora says clients include tier one miners, food manufacturers, and global engineering consultancies. No specifics on customer count or ARR disclosed. ## What This Means for Sales ESG software is growing fast in ANZ as regulatory requirements expand. Australia's climate disclosure rules kicked in 2024, creating genuine compliance pain for large organisations. That is real budget, not nice-to-have spending. The challenge: ESG software sales cycles are long. You are selling to risk, compliance, and sustainability teams who move slowly. Enterprise deals in regulated industries mean 9-12 month cycles minimum. ESGAgent.ai brought on Mike Duggan (ex-Ashurst Risk Advisory) as executive general manager and Greg Steele (Arcadis CCO) as investor and director. Those are enterprise relationships, not SMB motion. No hiring announcements yet. At $1.7m total funding, this is early days. Most ESG software startups at this stage run lean: 1-2 AEs maximum, possibly founder-led sales. Worth watching if they start building out a proper sales team post-funding. ## ANZ ESG Software Context Brisbane hosts 136 VC-backed startups with $159.6m total funding. ESGAgent.ai sits in a competitive space alongside firms like Planted (raised €5m) and Plotlogic ($42m Series B). The resources sector drives demand: mining and energy companies face the toughest ESG scrutiny. For sales professionals, ESG software represents a growing category but requires patience. Deals are strategic, not transactional. Comp data for this segment is scarce, but enterprise ESG software AEs typically earn $140k-180k OTE in ANZ markets, with longer ramp periods (6+ months) due to deal complexity.

Startup Daily
about 1 month ago
News

PE firms sitting on 33,000 unsold companies, 9-year exit backlog

## The Numbers Private equity firms are sitting on roughly 33,000 unsold companies worth $3.8 trillion, according to Bain's 2026 Global Private Equity Report. At current exit rates, clearing that backlog will take nine years. The average holding period at exit now sits around seven years, up from five to six years between 2010 and 2021. Almost 40% of all PE-backed companies have been held longer than five years, up from 29% in 2019. About 4,000 US companies have been held six or more years. Around 1,500 have been held nine or more. ## Software Is Frozen Only about 1,200 of the 13,500 PE-owned US companies are software, but they lock up a disproportionate share of capital. Most got bought at peak multiples in 2020 and 2021. Technology buyout deal value fell 70% between Q4 2025 and Q1 2026. Tech deals over $1 billion dropped from 15 to just 4. The trigger: public software valuations fell nearly 30% in February as the market repriced AI risk. Lower public comps drag down private marks. Selling now means booking the loss, so owners hold. ## Why Nobody Sells: The 5% Rule An April 2026 ILPA poll found that most limited partners lose confidence in a general partner once the discount to the last reported mark passes 5% on a full exit. Selling a company for even a modest haircut can cost a GP their next fund. The rational move is to hold and hope the number comes back, even when the market is saying otherwise. Holding has its own cost. Bain's analysis of 15 years of buyout vintages shows IRR starts to stagnate around year seven and falls after that. ## The Venture Side The venture backlog is separate but related. Per the 2026 NVCA Yearbook, 859 US unicorns are waiting for an exit. Globally, the World Economic Forum counts 1,920 privately held unicorns, and 59% were founded more than a decade ago. The median VC IRR for North American vintages since 2019 sits in the single digits. The median DPI for the past decade's vintages is still below 1x. A decade of funds, and the median one has not yet returned the cash it took in. ## What This Means for Sales Teams PE-backed software companies and aging unicorns are not exiting. That means: - Comp structures tied to exit events are not paying out - Territory expansions and headcount growth are frozen - Companies that should be consolidating or getting acquired are staying independent - Enterprise buyers are dealing with vendors whose ownership situation is unclear Bain's line: the industry is at an inflection point. Cheap debt and multiple expansion are gone. The only lever left is real operating growth, which is exactly what a lot of the 2021 cohort does not have. Worth noting: this is US-centric data, but the same holding period and exit challenges are emerging in ANZ venture and PE markets.

SaaStr
about 1 month ago
News

NZ geospatial startup Hyades raises $910k, no sales team yet

Auckland startup Hyades raised NZ$1.1 million ($910k AUD) in pre-seed funding to build a platform that converts messy geospatial data into AI-ready risk models. Icehouse Ventures led the round, with K1W1 and angels Tony Falkenstein and Tim Brown participating. The company also secured a $330k government R&D grant. The platform is in early alpha. It combines satellite imagery, drone footage, and radar data into unified datasets for insurance, agriculture, mining, and climate applications. Example use case: an insurer building flood risk models without manual data wrangling. Founded by University of Auckland graduates Ashin Alex (CEO), Sam Kurian (CTO), and Jimin Seo (COO). Alex previously worked on optical satellite communications. Kurian automated lecture note-taking, which became the technical foundation. ## What it means for sales professionals No sales team exists yet. The funding targets "enterprise co-design partners" and AI engineering hires. Translation: they are building with early customers, not selling at scale. Pre-seed raises this size in NZ typically add 3 to 5 hires over 12 months. Engineering comes first at technical infrastructure plays. Sales hiring likely 6 to 9 months out, if product-market fit lands. The target segments (insurance, agriculture, mining) require enterprise sales motion. Long cycles, technical proof of concepts, procurement committees. Not SMB velocity plays. Worth watching if you are an enterprise AE with geospatial or InsurTech experience in ANZ. Early-stage equity comp, quota TBD, but these technical infrastructure deals can hit $100k to $500k ACV when they close. For now: three founders, alpha platform, enterprise co-design phase. Check back in Q4 2026 for actual sales hiring.

Startup Daily
about 1 month ago
News

ServiceTitan hits $1B ARR growing 25%, fintech revenue up 29%

## The Numbers ServiceTitan posted $268.8M in Q1 FY27 revenue, up 25% year-over-year. That puts the home services software platform at a $1.08B run rate. Net dollar retention sits above 110%. Non-GAAP operating margin hit 15.2%, more than double the 7.5% from a year ago. The company trades around 6x to 7x ARR at $78 per share, down 40% from its $120 high. For a company growing 25% with improving margins, that multiple tells you how the market is pricing vertical B2B right now: competently, not enthusiastically. ## Fintech Is the Real Engine Subscription revenue grew 24% to $202M. Usage revenue (payments, transactions) grew 29% to $58.5M. That usage line now represents 22% of platform revenue and it is outpacing the core subscription business. Gross transaction volume hit $21.7B in the quarter, up 23%. Annualised, that is $87B flowing through the platform. This is the playbook: own the system of record, then monetise the money movement. Once you are the platform a contractor runs their business on, payments attach almost for free. ## Sales Efficiency Drove Margin Expansion Revenue grew $53M. GAAP sales and marketing spend grew $4M, up just 5.6%. When your revenue grows five times faster than your S&M spend, margins expand on their own. The company is not banking those gains. R&D spend grew 27% to $88M, now 33% of revenue. Management is explicit: they are building an "Agentic Operating System for the Trades" and a product called Max. They doubled Max adoption in Q1 and guided to doubling again in Q2. ## What This Means for Sales Teams ServiceTitan is proof that vertical SaaS can scale past $1B ARR without slowing down, but it requires two things: fintech integration and ruthless sales efficiency. The company has over 11,800 trade customers and no meaningful ANZ presence. Operations are concentrated in Greater Los Angeles and Atlanta. For sales professionals watching vertical SaaS companies, the comp structure likely mirrors the product strategy: base salary tied to subscription bookings, accelerators or SPIFs tied to payment attachment rates. The 110% NRR suggests strong account management incentives and likely territory expansion as customers grow. ServiceTitan raised $1.5B across 10 rounds before going public in December 2024 at a $9B valuation. The Series D was $165M, the largest vertical SaaS round globally at that time. The company is led by co-founders Ara Mahdessian (CEO) and Vahe Kuzoyan (President), both sons of tradesmen who built the software to solve their fathers' operational problems. Growing 25% at $1B ARR while expanding margins is rare. The market is pricing it fairly, not generously. That is the reality for most vertical B2B businesses in 2026: show the Rule of 40, show the efficiency, still trade at mid-single-digit revenue multiples.

SaaStr
about 1 month ago
News

Goterra liquidated after $36.5M raised, administrators find no buyer

Goterra is being wound up. The Canberra-based insect agriculture startup raised $36.5M over 10 years, including an $8M Series A from Grok Ventures and Tenacious Ventures, before running out of runway in June 2024. The numbers tell the story. Goterra spent roughly $25M developing its black soldier fly technology and regulatory approvals. Trading revenue grew from $365K in FY23 to $1.43M in the 11 months to May 2024. They also claimed $5.97M in R&D tax offsets in FY25, plus another $4.49M the following year. Revenue growth, sure. But the administrators' report is clear: ongoing losses while attempting to scale killed the business. Worth noting the company scaled processing capacity from 10 tonnes to 45,000 tonnes of food waste weekly by 2021. That is impressive operational scaling. The funding did not keep pace. Founder and CEO Olympia Yarger started Goterra in 2014 as one of the earliest entrants in insect-ag. The technology works: turn organic waste into animal feed and fertiliser in 12 days using modular, autonomous insect farms. The business model did not. Administrators Daniel Walley and Martin Ford from Teneo found no viable proposals to preserve the company as a going concern. They are now serving as liquidators. No public data on headcount, but liquidation means the team is done. This fits the pattern. Deep-tech startups with long development cycles and capital-intensive scaling often hit a wall between early traction and breakeven. Goterra had the technology, the early investor backing, and revenue momentum. They could not close the round needed to bridge the gap. For sales teams in climate tech or ag-tech: if your company is burning cash to scale before unit economics work, ask hard questions about runway and the next funding round. Revenue growth without a clear path to profitability is not a business, it is a timer.

SmartCompany
about 1 month ago
News

Gamma hit $100M ARR with 50 people, zero sales team, now hiring AEs

## The numbers that matter Gamma hit $100M ARR with 50 employees, 50 million users, and 700,000 paying subscribers. Profitable since early 2024. Zero sales headcount. Zero marketing spend. That is not a typo. CEO Grant Lee and two former Optimizely colleagues built an AI-powered presentation platform that grew entirely on word-of-mouth. They just raised $68M Series B at a $2.1B valuation led by Andreessen Horowitz. Now Lee says waiting to hire sales was his biggest mistake. ## How they got there without a sales team Gamma's growth playbook sounds like every founder's fantasy: build a product so good people tell their friends. The execution was harder. After launching on Product Hunt in 2022, signups spiked then plateaed. No organic growth. The team spent three months rebuilding the entire onboarding experience: type a prompt, get a first draft of your presentation, keep editing with AI. Then Lee posted a provocative tweet: "The most valuable skill in business is about to become obsolete." Paul Graham replied with shade. The tweet went viral. Signups jumped from 5,000 to 50,000 per day. Zero paid acquisition. Pure word-of-mouth amplification. ## The mistake: not hiring sales sooner Lee is direct about what he would change: "I wish we'd added sales earlier." Gamma's product-led growth worked for SMB and individual users. But enterprise deals, custom contracts, and multi-seat deployments still need human intervention. The company left revenue on the table by not building that motion sooner. Now they are hiring their first AEs. No comp details public yet, but worth watching how a $100M ARR company structures its first sales org after scaling entirely without one. ## What this means for sales teams If you are interviewing at Gamma, you are building the sales function from scratch at a company that already has product-market fit and $100M in revenue. That is rare. Most AEs join earlier or later, not at this inflection point. The flip side: you are selling into a category with massive incumbents (PowerPoint, Google Slides, Canva) and teaching enterprise buyers to think differently about presentations. That is a long sales cycle with education required. Gamma's pitch is writing-first, AI-generated content with no design expertise needed. It resonates with startups and engineers. Whether that translates to enterprise without heavy customisation is the open question. ## The broader lesson Product-led growth can take you far, but it has a ceiling. Lee proved you can hit $100M ARR without sales, but even he admits you should not wait that long. For sales professionals: companies with strong word-of-mouth and no sales team are not unicorns anymore. They are potential employers who need someone to build the revenue engine for segments the product cannot reach alone. That is a different job than joining a company with an established sales playbook. Higher risk, higher ownership, unclear comp benchmarks. But if they already have $100M ARR and product-market fit, the foundation is there. Just ask about the quota and ramp period first.

SaaStr
about 1 month ago
News

Gridcog raises $12.5M Series A, two other startups add $7M

## The Numbers Three Australian startups raised $19.5 million this week. Gridcog, an energy modelling platform, took $12.5 million in a Series A led by ABB Electrification Ventures. The other two startups accounted for $7 million, though names were not disclosed in available reporting. ## What Gridcog Does Founded by Fabian Le Gay Brereton and Pete Tickler, Gridcog replaces spreadsheet-based energy project modelling with a simulation platform. Target buyers: renewable energy developers, utilities, and businesses planning solar, wind, and battery storage projects. This is enterprise software sales. Complex buying committees, long sales cycles, technical demos required. The kind of deal where an AE needs to speak fluent engineering and finance. Gridcog raised $6.4 million in 2024. Series A usually means the sales playbook is working and now it is time to scale the team. Expect AE and solution engineer hiring in the next six months. ## The Investors ABB Electrification Ventures led, with Axpo Ventures, DNV Ventures, and Verbund Ventures participating. All strategic investors with energy sector networks, which matters for enterprise sales. When your lead investor can open doors at utilities, quota gets easier to hit. ## Market Context Australian startups raised $1.8 billion in Q1 2026, up 63% from Q1 2025. Climate tech and infrastructure software are drawing capital. For sales professionals: that means more funded companies hiring, but also more competition for enterprise deals in the energy transition space. Series A rounds typically fund 6 to 12 months of aggressive hiring. If Gridcog follows the pattern, expect territory expansion and quota increases for existing reps as new AEs ramp. ## What This Means for Sales Teams Energy modelling is not sexy, but it is necessary. Companies that solve spreadsheet problems for engineers tend to have strong retention and expansion revenue. That makes for stable comp plans and predictable attainment, assuming the product delivers. Watch for Gridcog job postings in Melbourne and Sydney over the next quarter. If you have sold technical infrastructure software to energy buyers, this is your market.

SmartCompany
about 1 month ago
News

SaaStr CEO: Ignore your VC's hiring pressure 70% of the time

## When Your VC Pushes Aggressive Hiring, Push Back SaaStr CEO Jason Lemkin has a warning for early-stage founders: when your VC tells you to hire faster and burn harder, that advice is wrong 66-70% of the time. The pressure typically comes from large VC firms. The reason is not complex. They want to deploy more capital to increase their ownership stake. Your burn rate is your problem, not theirs. ## Founders Already Know Their Numbers Lemkin's take: by the time you hit $6-10m ARR and 50-200 customers, you understand how to invest $X to get $Y out. First-time founders might take longer to scale spend comfortably, especially if they bootstrapped before raising. So what. They figure it out. Pushing them to accelerate that learning does not help. It just increases the risk of runaway burn. ## The Real Cost of VC Pressure Even a slightly elevated burn rate compounds fast. Founders need to own their Zero Cash Date and burn multiple (ideally 1-2x). VCs are less worried about your runway than you should be. This matters more in 2026. Traditional B2B SaaS fundraising has slowed outside AI-native products. Capital is concentrated in hypergrowth AI companies. Assume the next round might not happen. ## What Good Advice Looks Like Instead of "spend more," VCs should help identify where to hire: VP of Marketing, Customer Success expansion, AEs for a growing segment. Show the ROI on specific roles. Let founders control the pace. The sales hiring implication: if your leadership is feeling VC pressure to double the team, ask about the math. What is the expected payback period? What does attainment look like in the new territory? Who owns the ramp plan? Good growth comes from strategic hires, not aggressive ones. Know your burn multiple. Protect your runway. The VC gets another shot with their next investment. You do not.

SaaStr
about 1 month ago
News

Notion scaled comp from 80 to 400 reps: here is the playbook

## The Numbers Notion scaled its commissionable headcount from 80 to over 400 employees under Brian Le's compensation framework. Top AEs pull over $1 million per quarter. The company automated commissions through Everstage after running manual calculations across spreadsheets. ## What Changed Le's first priority was not plan design. It was trust. Notion's comp had been managed manually across fragmented data sources. He ran a full RFP, automated the stack, and gave reps visibility into their earnings before touching structure. The framework sits on three pillars: OTE and pay mix, quota and payout curves, and governance (crediting rules, policies, terms). When these stop talking to each other, the plan degrades. ## Early Warning Signs Attainment pacing tells you first. Deals bunching at quarter end signal cycle problems. Attainment distribution comes next: if everyone blows out quota, the quota is wrong. Diagnose by segment and region before adjusting. Le flags the real cost of comp errors: a rep who quits over payout surprises takes their ramp investment with them. You eat that cost twice: once on the exit, again on the backfill. ## First Hire Approach Two schools for early-stage comp. Option one: 100% guarantee while gathering data on what actually closes. Option two: best-estimate quota with downside protection and an upside cap. Either way, respect the precedent. Once you set a threshold, walking it back is hard. ## Usage-Based Shift Notion transitioned from seat-based to usage pricing during this scale period. That changes everything: commission triggers, clawback terms, quota construction. Pay mix signals what reps can influence. If the comp does not match the motion, behavior will not either. ## What It Means Comp is not an HR derivative. It is the operating system for go-to-market. Show me the incentive and I will show you the outcome is not motivational: it is mechanical. Notion's scale proves the point. Automate the basics, earn trust, then design for the business model you are actually running.

Sales Hacker
about 1 month ago
News

LendUs closes $5M Seed, building white-label mortgage platform for partners

## LendUs closes $5M Seed, building white-label mortgage platform for partners Sydney mortgage fintech LendUs closed a $5 million Seed round led by Carthona Capital. The round was oversubscribed, attracting nearly double the committed capital before the company capped it. Founded in 2023 by Dean Mendelowitz (26, former Zip data scientist), LendUs builds embedded finance infrastructure for brands and platforms. Partners white-label the home loan broking tech into their own apps. The platform compares 30+ lenders using AI and Open Banking, then connects users with human advisors to close deals. Mendelowitz is backed by Brad Lindenberg (sold QuadPay to Zip for $403M) and Graham Mendelowitz (founded MKM Capital, acquired by MA Financial Group). That pedigree likely helped the oversubscription. **What this means for sales teams:** LendUs now has 20+ integrated partnerships and 10,000+ users comparing loans through the platform. The Seed capital funds headcount expansion, though the company has not disclosed current team size or hiring plans. Worth watching if they start building an enterprise sales motion to sign more platform partners. The model is B2B2C: sell the white-label platform to organisations (member groups, digital platforms, brands), who then offer mortgage broking to their end users. That typically means a mix of partnership managers and AEs working enterprise deals, plus customer success to retain partners. **ANZ fintech sales context:** Mortgage fintech hiring in Australia has been quiet since rate hikes slowed the market in 2022-23. LendUs is competing against traditional brokers and digital platforms like A2Z Home Loans and Better Finance. The embedded finance angle (plug into existing platforms rather than build your own customer acquisition) is the differentiator here. No comp details disclosed. The company is not currently advertising sales roles, but a $5M Seed at this stage usually means 2-4 early sales hires over the next 6-12 months as they scale partnerships. **Note:** This is the Sydney-based LendUs (fintech). Unrelated to the US retail lender LendUS, which CrossCountry Mortgage acquired in 2024.

Startup Daily
about 1 month ago
News

Marketo loses 20-year customer over pricing, won't discount at renewal

## The Discount That Would Have Worked Adobe Marketo just lost one of its first 10 customers. Jason Lemkin, SaaStr founder, churned after nearly 20 years. The reason: Marketo raised pricing at renewal instead of offering a discount. The product had issues: broken unsubscribe handling, daily API rate limits, six-month history caps. But Lemkin was clear: "If they'd offered us a large discount to stay, we'd probably stay. At least for another year." Instead, Marketo increased pricing for zero new features. The account walked. ## The NRR Trap This is the problem with optimising for Net Revenue Retention at all costs. Median private B2B NRR sits at 101%. Companies above 120% NRR trade at a 63% premium to median. Companies below 100% trade at a 46% discount. That pressure pushes legacy vendors to hold the line on renewal pricing. Discounting a renewal drags NRR down this quarter. Letting the difficult account walk keeps the number clean. But here is what you actually lose: the year that discount would have bought you to fix the product. The account that would have expanded once you did. The signal about where your product is falling behind. You protect the metric by harvesting the base. It looks fine right up until the base is gone and there is nothing left to expand into. ## What Account Managers Should Actually Do The discount is a stall, not a fix. The real answer is a better product. But the discount buys you time to build it. For account managers sitting on at-risk renewals right now: usage trending down, support tickets piling up, logins dropping, the champion who stopped showing up to the QBR. Those customers are telling you they are going to leave. They probably mean it. The question is not whether discounting hurts NRR this quarter. The question is whether keeping the customer at a lower price is better than losing them to protect Average Selling Price. Sometimes the answer is no, and you let them go. But you should be making that call on the signals, not missing it because you were protecting a metric instead of the business. ## The Adobe Marketo Context Adobe acquired Marketo in 2018 for $4.75 billion. The platform hit $400 million revenue in 2024 with approximately 174 quota-carrying sales reps globally. It competes with HubSpot, Salesforce Marketing Cloud, and Eloqua. With a customer base spanning two decades, renewal strategy matters. Protecting NRR and protecting the company are not the same thing. Legacy vendors confuse them constantly.

SaaStr
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