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Entrepreneurship & Startups vocabulary · Ideas & Business Models

SaaS

Meaning in entrepreneurship & startups, with examples

/sæs/abbreviationCore term

In entrepreneurship & startups, SaaS means: Software as a service: software that customers use online through a browser or app and pay for with a regular subscription instead of buying it once.

In Turkish: hizmet olarak yazılım, SaaS

How it is used

One of the most common startup models. People talk about SaaS companies, B2B SaaS, SaaS metrics (MRR, ARR, churn, net revenue retention) and vertical SaaS, meaning software for one industry. It is usually pronounced like the word sass.

Example sentences

  1. We're a B2B SaaS company selling scheduling software to clinics.

  2. Investors valued the company like a SaaS business because most of its revenue is recurring.

Common collocations

  • B2B SaaS
  • SaaS company
  • SaaS metrics
  • vertical SaaS
  • SaaS platform
  • subscription modelA business model in which customers pay a regular fee, usually monthly or yearly, to keep using a product or service.
  • MRRMonthly recurring revenue: the predictable income a subscription business earns every month from active customers, not counting one-off fees.
  • churnThe loss of customers or subscribers who stop using or paying for a product in a given period, usually measured as a monthly or yearly percentage.
  • B2BBusiness to business: describes companies that sell products or services to other businesses rather than to individual consumers.
  • freemiumA business model in which the basic version of a product is free and customers pay for extra features, more usage or a premium plan.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Ideas & Business Models

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