We’ve rolling out special, unique SaaStr AMAs for SaaStr Pro subscribers. Every 2 weeks or so, we’ll answer all the burning questions from SaaStr Pro members. You can check out the first one above, which was pretty good. Sign up for SaaStrPro.com for access to all of them! We’ll train your team on SaaStr, you can come to the Annual and Europa for free — and More!! The post New: First SaaStr Pro AMA with Jason! appeared first on SaaStr.
Editor’s Note: The following is an excerpt from The Startup Playbook: Founder-to-Founder Advice From Two Startup Veterans available on Amazon here. While figuring out your go-to-market strategy isn’t linear, you do need a place to start. We like to start with the pricing strategy. If you have a sense for your price point and model, that can be fundamental to the specific sales and marketing approaches you take. A significant way you can differentiate your company is by making the pricing strategy (often called pricing model) unique. The place to start with pricing is to get a handle on the general concept. Start by investigating the following:
- Value of your solution. What is your solution worth to your customer? Does it help them save time or money? Is the value emotional? Does it help them generate more income? You’ll need to analyze the benefit of your solution from the customer’s Continue reading "The Startup Playbook: Nailing Pricing Strategy"
There are many great answers on this thread. Let me just summarize my #1 observation here: the top mistake first-time sales managers make is recruiting. In that — they can’t do it. It is incredibly hard to figure out how to replicate the magic of the first 1 or 2 sales reps that work closely with the CEO. And add in a first-time sales manager who may have limited experience recruiting a team, and it gets risky. Generally, I would pass on hiring a sales leader who has never recruited at least a few reps that hit quota. This is very different than managing them, or inheriting a team. Going out and sourcing, closing and managing several reps to exceed quota. If your first head of sales / VP of sales can’t bring in at least 1–2 great reps in her first 60 days … it’s usually close to hopeless. Continue reading "Sales: Which are the common mistakes Sales Managers are making when managing their sales force?"
I’ve invested in founders from France, England, Armenia, Estonia, Sweden, etc. and I should know the answer to this question. But I’m not sure I do. I’m not remotely an expert in immigration law. What I have learned is the best founders find a way to make it work, and make the impacts on investors relatively minor. View original question on quora The post If a startup has a co-founder that is out of status in the U.S can they still pass VC Due Diligence? appeared first on SaaStr.
Yesterday, Salesforce announced it will acquire Mulesoft for $6.5B. A recent addition to the list of public software companies, Mulesoft is a tremendous business. The company generated $297M of revenue in 2017 at a 73% gross margin, and grew by 58%. Salesforce is acquiring the business for an astounding 21x enterprise value to trailing twelve months revenue multiple - nearly 2x the next closest.
|Transaction||Price ($M)||TTM Rev ($M)||Growth Rate||Gross Margin||Year of Acquisition||Enterprise Value||EV/TTM Rev|
Continue reading "The Salesforce/Mulesoft is a Bellwether for the 2018 M&A Market"
With so many digital channels these days, it can be hard to tell where you should be spending your time and marketing budget. SEO, email marketing, PPC, native advertising, podcasts, social media…the list goes on! But that’s exactly why it’s important that you spend your money and energy in the right places. If you spend your time and budget on the wrong channels, not only will you be wasting your marketing dollars, you’ll also be missing out on potentially lucrative opportunities to grow your business on other channels. That means it won’t just cost your company thousands in wasted marketing dollars – it could cost you even more in unrealized revenue! Thankfully, you don’t have to completely guess at what works. ROI is something that can be defined, measured, and analyzed. But first, you need to understand some of the challenges with picking a single top-performing channel.
I’m not sure very many VCs fell for anything. Many investors — yes. But not that many VCs. DFJ led a $500k seed investment. A $500k seed round for a medium-sized fund is just a small bet on a founder. No other traditional VCs invested in the rounds, other than ATA Ventures, who is still a bit non-traditional and has GPs who have taken intentional, aggressive bets on material science and other areas that often never even get to market and lose 100%. They were likely willing to lose all the money as well, which looks initially to have been single-digit millions (total round: $9.1m). That’s a lot more than $500k, but still, a bet. Although it’s a tough loss, even losing $9m won’t destroy most VC firms. If you are trying to turn say a $150m fund into $450m, you can afford a $9m loss. You don’t like
Continue reading "How did the venture capitalists that invested in Theranos fall for Elizabeth Holmes’ scam?"