Benchmarking Netsuite’s S-1 – How 7 Key SaaS Metrics Stack Up


This post is by Tomasz Tunguz from Tomasz Tunguz


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Founded in 1998, Netsuite is worth about $7.7B, making it the sixth largest SaaS compay behind Salesforce, LinkedIn, Workday, ServiceNow and Splunk. Netsuite began developing ERP (enterprise resource planning) tools to help companies manage their finances, expenses and supply chain. Over time, Netsuite has added a few more product lines including ECommerce platform, CRM, business intelligence and a professional services management product. In the last ten years, Netsuite has grown revenue from $18M to $556M.

Benchmarking Netsuite’s S-1 – How 7 Key SaaS Metrics Stack Up


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Founded in 1998, Netsuite is worth about $7.7B, making it the sixth largest SaaS compay behind Salesforce, LinkedIn, Workday, ServiceNow and Splunk. Netsuite began developing ERP (enterprise resource planning) tools to help companies manage their finances, expenses and supply chain. Over time, Netsuite has added a few more product lines including ECommerce platform, CRM, business intelligence and a professional services management product. In the last ten years, Netsuite has grown revenue from $18M to $556M. As the company disclosed in their last annual report, Larry Ellison, the CEO of Oracle, owns 47.4% of Netsuite common stock, implying the company is strategically important to Oracle. Over the past decade, Netsuite has grown 37% per year, starting at about 51% in 2005 and in recent years, consistently sustaining 25% annual growth. In 2006, according to the company’s S-1, the business shifted from longer term contracts to one year contracts.
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Desired Outcome is a Transformative Concept


This post is by Lincoln Murphy from SaaS Growth Strategies


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desired-outcome-transformativeOne of the most powerful concepts I’ve ever come across in business is the idea of the customer’s Desired Outcome.

And if you’re thinking “one of the most powerful concepts in business” seems like a pretty hefty charge, you’re right; this concept has transformational properties.

When I first introduced Desired Outcome, I explained that this idea came about as a simple replacement for “what does Success mean to your customer?”

But it’s SO MUCH MORE than that… let’s dig in.

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What’s Really Happening in the World of Bitcoin Investment


This post is by Tomasz Tunguz from Tomasz Tunguz


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In response last week’s post on The Fastest Growing Areas of Startup Investment in 2015, in which Bitcoin topped the list, I received many questions about the underlying dynamics of this startup segment. Which regions? Which stages? How much is going into Bitcoin companies. Using Crunchbase data, I analyzed BTC investment patterns over the past 4 years. The chart above shows that Bitcoin investment started in earnest in 2013. In 2014, total investment spiked to more than $3.

What’s Really Happening in the World of Bitcoin Investment


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




In response last week’s post on The Fastest Growing Areas of Startup Investment in 2015, in which Bitcoin topped the list, I received many questions about the underlying dynamics of this startup segment. Which regions? Which stages? How much is going into Bitcoin companies. Using Crunchbase data, I analyzed BTC investment patterns over the past 4 years. The chart above shows that Bitcoin investment started in earnest in 2013. In 2014, total investment spiked to more than $3.5B, and through June 2015 Bitcoin startup have raised more than $4B. This data implies 2015 should be the best year ever for Bitcoin investment. As for stage of investment, I’ve decided that Series A and B are too vague to be meaningful to describe the stages of companies when they raise capital. Instead, I created segments of investment based on round size: < $5M, < $30M and so on. Early Continue reading "What’s Really Happening in the World of Bitcoin Investment"

The Seeds of Churn are Planted Early


This post is by Lincoln Murphy from SaaS Growth Strategies


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seeds-of-churn-are-planted-early“The Seeds of Churn are Planted Early” is a phrase I came up with in early 2013, published shortly thereafter, and have said and used many times since.

I wanted to go on record with that – BTW, if you see the term’s use outside of my work or that of Gainsight’s, maybe send them this link – but I also wanted to give the origin story of this powerful Customer Success concept.

It was late December 2012 when the CEO of a startup that had a major churn problem contacted me.

They were losing far more customers than they were bringing in – and they were bringing in a lot of customers – and he knew this was clearly not sustainable; I could tell he was worried.

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If You Chase Two Rabbits…


This post is by Tomasz Tunguz from Tomasz Tunguz


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Founders often ask, when is the right time to expand geographically, add a second product or pursue another customer segment? Most of the time, the answer is not yet, not until the company is quite large, perhaps in the hundreds of employees and the main challenges and questions for the business have been answered well. When a startup pursues a new major initiative, the company divides all its key teams by two.

If You Chase Two Rabbits…


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Founders often ask, when is the right time to expand geographically, add a second product or pursue another customer segment? Most of the time, the answer is not yet, not until the company is quite large, perhaps in the hundreds of employees and the main challenges and questions for the business have been answered well. When a startup pursues a new major initiative, the company divides all its key teams by two. If speed and focus are the advantages of startups, then this startup has halved its focus and doubled execution time. There are now two marketing messages, two sales pitches, two press strategies, two product and engineering teams. Rationalizing two messages can be a challenge for companies to communicate and customers to internalize. For most small companies’ management teams and employees, this doubling of complexity is overwhelming. Second, the company risks slowing its core business. If the company is Continue reading "If You Chase Two Rabbits…"

Why Consumer Startups Dominate the Megaround Market


This post is by Tomasz Tunguz from Tomasz Tunguz


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If there’s one notion that will define the decade early 2010s in startupland, it’s the Megaround, the investments of greater than $40M in private companies. Historically, startups needed to trade on public exchanges to access sums of money from $40M to several billion. But today, the private markets are providing this capital. These billions of dollars, which amount to about half of all venture investment, skew substantially towards consumer investments.