SaaStr · 2014-03-16
· 4462d
Why the CRM Market Will Produce 10-20 Billion-Dollar Startups
As Salesforce scales to $10B+ ARR, it abandons smaller customer segments and market verticals, creating $1B+ revenue opportunities for specialized competitors. The article argues that SaaS markets are large enough to support multiple unicorns, and that new entrants can win by targeting underserved segments rather than dethroning incumbents.
Metrics in this report
CRM IPO Opportunity Count
10-20companies
predicted
$100M+ ARR CRM companies
CRM Market Opportunity at Bottom Segments
1billion $
estimated
Bottom 10% of $10B CRM market
Enterprise Technology Market Cycle
3-5years
typical
Major theme changes creating disruption opportunities
Minimum Viable ARR for Unicorn Status
100million $
threshold
Path to $1B+ market cap
Salesforce Target ARR
10billion $
projected near-term
Salesforce revenue target
Salesforce Target Deal Size Focus
50-100million $
at scale
High-priority customer segments for Salesforce at $10B ARR