The Most Important Feature In KitKat No One is Talking About


This post is by Tomasz Tunguz from Tomasz Tunguz


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Quietly mentioned in yesterday’s press conference about Google’s Android update is a new feature that will change the way people use their mobile phones, search deep-linking. With KitKat, Google is applying its world-class crawling and search technology to the content and data within mobile applications. Quoting from the Verge, >A search for a restaurant will offer a link directly to that restaurant page in the OpenTable app if you have it installed, allowing you to set up a reservation.

The Most Important Feature In KitKat No One is Talking About


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Quietly mentioned in yesterday’s press conference about Google’s Android update is a new feature that will change the way people use their mobile phones, search deep-linking. With KitKat, Google is applying its world-class crawling and search technology to the content and data within mobile applications. Quoting from the Verge,
A search for a restaurant will offer a link directly to that restaurant page in the OpenTable app if you have it installed, allowing you to set up a reservation. Or a recipe search will bring you to the result directly inside of the AllRecipes app — rather than the mediocre mobile website.
This seemingly small feature, called deep-linking, will change the way users interact with their mobile phones. To date, mobile app content has been siloed behind rectangular chiclets. Looking for a document? Can’t remember if it’s stored in Evernote, Box, Gmail or Dropbox? Today, finding it means loading each Continue reading "The Most Important Feature In KitKat No One is Talking About"

The Three Churn Mitigation Strategies of SaaS Startups


This post is by Tomasz Tunguz from Tomasz Tunguz


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Every SaaS business suffers from churn. If churn isn’t managed properly, the lost revenue from churned customers offsets new revenue and the business flat-lines or suffers negative revenue growth. I’ve seen startups employ three patterns for offsetting churn: acquiring new customers faster, upselling existing customers to buy more software, or structuring pricing to grow with customers. Each strategy requires different levels of investment but achieves similar results. These strategies are often deployed in addition to a customer success team, which require their own investment.

The Three Churn Mitigation Strategies of SaaS Startups


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Every SaaS business suffers from churn. If churn isn’t managed properly, the lost revenue from churned customers offsets new revenue and the business flat-lines or suffers negative revenue growth. I’ve seen startups employ three patterns for offsetting churn: acquiring new customers faster, upselling existing customers to buy more software, or structuring pricing to grow with customers. Each strategy requires different levels of investment but achieves similar results. These strategies are often deployed in addition to a customer success team, which require their own investment. Below, I’ve modeled a hypothetical company which grows from 100 to 50,000 customers. The business charges an average of $20k per year (ACV) and loses 20% of their revenue to churn annually, net of customer success efforts. For each strategy, I show the investment required to offset revenue churn.
Customers 100 1,000 10,000 50,000
ACV 20,000 20,000 20,000 20,000
Revenue in $M 2 20 200 Continue reading "The Three Churn Mitigation Strategies of SaaS Startups"

Quick and Dirty Product/Market Fit Validation: Can You Hit Your Quota?


This post is by Tomasz Tunguz from Tomasz Tunguz


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How do you validate an idea for a software startup before the product is built? Last week, a founder of a SaaS business and I were wrestling with this problem. It’s a question without a universal answer. After a while, we came up with quick and dirty rule of thumb for his business. Can he hit his quota? Suppose this founder wasn’t the founder, but the first inside sales hire for the startup.

Quick and Dirty Product/Market Fit Validation: Can You Hit Your Quota?


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




How do you validate an idea for a software startup before the product is built? Last week, a founder of a SaaS business and I were wrestling with this problem. It’s a question without a universal answer. After a while, we came up with quick and dirty rule of thumb for his business. Can he hit his quota? Suppose this founder wasn’t the founder, but the first inside sales hire for the startup. His annual quota would be around $300k or about $25k per month. He would likely commit to a four month quota ramp, needing to reach of 25% of quota ($6k) in the first month, 50% in the second ($12k) and so on. With his mockups/demo in hand and given 30 days, could he sell $6k worth of vaporware and become confident of achieving his second month’s quota? Would customers agree to buy the product at the target Continue reading "Quick and Dirty Product/Market Fit Validation: Can You Hit Your Quota?"

SaaS Growth Strategy | A Customer Lifecycle Approach


This post is by Joel York from Chaotic Flow by Joel York


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Driving sustainable growth is a challenge for every SaaS business from startups to public companies. In the beginning, the SaaS recurring revenue model seems like a dream compared to the revenue fits and starts of licensed enterprise software. But within one short customer lifetime, every SaaS CEO startles awake to the fact that the churn monster is always looking over your shoulder.

In the short run, SaaS growth scales with customer acquisition, but in the long run churn kicks in and dominates even the most aggressive SaaS growth strategy, creating a SaaS growth ceiling that can be incredibly difficult to break through. SaaS churn naturally scales with the size of your customer base making it negatively viral. Overcoming churn and breaking through the SaaS growth ceiling requires a relentless focus on growth that pushes every available SaaS growth lever.


saas growth strategy

Click the image or link to download the complete Continue reading "SaaS Growth Strategy | A Customer Lifecycle Approach"

The Unexpected Compensation Trends of Post-Series A Startup Founder/CEOs


This post is by Tomasz Tunguz from Tomasz Tunguz


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There’s an interesting phenomemon occurring in founder compensation for post-Series A companies: founding CEOs are swapping cash for larger equity stakes in their companies. Founding CEO salaries, post Series A, have fallen by about 24% while founder equity has increased by 32%. This trend is broad. Each year, Redpoint portfolio companies participate in a compensation survey along with the portfolio companies of about 50 other firms, totaling about 800 startups. A third party pools the data to benchmark compensation trends across the executive functions in startups (CEO, VP of Product, VP of Marketing, VP of Sales, and so on) across the different financing series, locations, development stages and founders vs non-founders.

The Unexpected Compensation Trends of Post-Series A Startup Founder/CEOs


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




There’s an interesting phenomemon occurring in founder compensation for post-Series A companies: founding CEOs are swapping cash for larger equity stakes in their companies. Founding CEO salaries, post Series A, have fallen by about 24% while founder equity has increased by 32%. This trend is broad. Each year, Redpoint portfolio companies participate in a compensation survey along with the portfolio companies of about 50 other firms, totaling about 800 startups. A third party pools the data to benchmark compensation trends across the executive functions in startups (CEO, VP of Product, VP of Marketing, VP of Sales, and so on) across the different financing series, locations, development stages and founders vs non-founders. While I can’t be certain why the trend towards equity is occurring, I suspect that many startups are founded by younger entrepreneurs who don’t demand larger salaries and prefer equity. In any case, this patterns startups in two ways: Continue reading "The Unexpected Compensation Trends of Post-Series A Startup Founder/CEOs"

Dream Teams: The Characteristics of Billion-Dollar Startup Founders


This post is by Tomasz Tunguz from Tomasz Tunguz


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There’s a perpetual and roaring debate in Startupland about the ideal founding team. Should the ideal team be entirely computer scientists? How important to success is having an MBA/business person? What about the stories of billionaire dropouts? To answer that question, I’ve aggregated the academic backgrounds of 30 of the top startups of the past few years and analyzed the make up of each of those founding teams. Above is a chart comparing the number of “billion” dollar startups by the total number of founders and the share of technical founders.