Scott Dorsey (ExactTarget, High Alpha): The Journey to a Unicorn – And How We’re Doing It Even Better This Time (Video + Transcript)

In anticipation of the upcoming SaaStr Annual 2017, we’ll be releasing the full series of transcripts and videos from all the awesome 2016 sessions. Not many successful SaaS companies have (yet) been built and headquartered in Indianapolis. Scott Dorsey, co-founder and former CEO of ExactTarget, remained true to his roots and turned his Midwestern manners and values in a $1B+ exit – two, to be exact. Whether it’s as CEO of ExactTarget (which he took public in 2012, then sold to Salesforce for $2.5 billion just 15 months later) or Managing Partner at High Alpha, building a strong leadership culture known in the SaaS community for inspiring and empowering employees has always been a key factor to his success as a founder. Gordon Ritter, Founder and General Partner at Emergence Capital and an investor in Scott’s most recent venture High Alpha, joins Scott in this session as he shares his
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7 Things We’ve Learned in Hybrid Revenue SaaS

unnamed-3 By Tony Knopp, CEO & Co-Founder of InviteManager, which makes planning your client entertainment easy. Building an enterprise SaaS is a challenging proposition. Doing so with a services business attached can be even more interesting. Here are seven things we’ve learned about building, raising money for, and growing an enterprise SaaS with a hybrid services revenue model.
  1. There are no absolutes: Despite what you’ll hear out “in the market” services are not dead, they don’t kill your valuation, and they are not an albatross around your companies neck.
We have three revenue streams: Recurring software license fees (~98% gross margin (GM), affiliate fees (96% GM), and fulfillment services fees (~11% GM). In raising our Series A and B, we saw every kind of valuation you can imagine:

Serverless is the new multitenancy

Dataplace, Alblasserdam Multitenancy was the single-biggest technology breakthrough in SaaS. It not only allowed for higher gross margins, it made it viable to serve small and medium businesses with world-class software  —  at a profit. Similarly, serverless compute is both a new way of building apps and a new way of consuming and paying for it. Serverless takes the promise of multitenancy to a whole new level. Read More

Customer Segmentation: A Guide to the Best B2B Practices

To scale efficiently and effectively, expansion stage companies need to focus their efforts not on a broad universe of potential customers, but rather on a specific subset of customers who are most similar to their best current customers. The key to doing so is through customer segmentation.

Customer Segmentation & Why it Matters

At its most basic, customer segmentation (also known as market segmentation) is the division of potential customers in a given market into discrete groups. That division is based on customers having similar enough:
  1. Needs, i.e., so that a single whole product can satisfy them.
  1. Buying characteristics, i.e., responses to messaging, marketing channels, and sales channels, that a single go-to-market approach can be used to sell to them competitively and economically.
There are three main approaches to market segmentation: