Shopify S-1 Analysis – Smiling All the Way to $10B

Shopify is an exceptional business. There are not many software companies who can nearly quadruple their enterprise value in two years. But Shopify has grown from $2.7B in enterprise value to more than $10B. What are the metrics behind this behemoth?

First, let’s describe the company a bit. Shopify provides e-commerce infrastructure to merchants. They generate revenue in two ways: subscriptions and merchant services. Merchants pay subscription to rent the software. They pay merchant services for payment fees and other costs that increases the function of the amount of stuff they sell, or Gross Merchandise Value (GMV).

Since 2013, Shopify GMV has 10xed from $1.6B to $15.4B. The merchant population has nearly doubled to 201,000 from 120,000. In that time, revenue has increased from $40M to $389M.

Shopify has been able to sustain a greater than 90% growth rate for each of the last four years. This

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Building a Series A SaaS valuation estimator (2017 edition)

 I have financed nearly 50 early-stage companies and the question of proper valuation comes up in every financing. There is the obvious tension: Generally speaking, the existing shareholders would like the highest valuation possible, while the new investors would prefer the lowest. For founders, understanding how VCs look at valuation is critical for a successful fundraising process. Read More

Time Is Money: How Demandbase’s David Mordzynski Structures His Workday To Get The Most Out Of His Time…And His Quota

Sadly, it’s a story we all know much too well: you get in the office bright and early with a long list of things to get accomplished, only to have your planned productive day derailed by surprise task after surprise task.
And no matter how “small” the unexpected job is, it takes time to complete. Add that all up and before you know it, the day is done and you’re staring at the same list you were in the morning. There’s always tomorrow, right? The post Time Is Money: How Demandbase’s David Mordzynski Structures His Workday To Get The Most Out Of His Time…And His Quota appeared first on Predictable Revenue.

Decision-Making Auditing

How do you help someone when that person knows substantially more about the question than you do? This is one of the most fundamental and frequent questions in management. I came across it first as a product manager. Then as a manager of teams. And last as a board member. In each of these situations, have interacted with people who knew substantially more about their area of expertise.

There are lots of pitfalls when answering the question, “what do you think?” I know, because I’ve suffered through all of them. Whether it’s arguing by analogy, talking about a bike rack, or arguing with a false sense of confidence based purely on opinion/instinct, each of these reponses has a critical flaw.

Ultimately, I’ve landed on a strategy I call decision making auditing. I’ll never know as much about a company’s operations or strategy or a sector as a founder/management Continue reading "Decision-Making Auditing"

Conference Success on a Shoestring Budget: How VanHack Booked 60 Meetings at a Recent Conference Without Springing for a Booth or Sponsorship

Attending a conference (or two or three) is one of the highlights of a salesperson’s year. You get out of the office, often to a cool city, and get some face time with with customers and other sales professionals. What’s not to love? The post Conference Success on a Shoestring Budget: How VanHack Booked 60 Meetings at a Recent Conference Without Springing for a Booth or Sponsorship appeared first on Predictable Revenue.

Salesforce Einstein celebrates its first birthday with several new features

 Salesforce launched Einstein, its artificial intelligence platform just one year ago this week. As it celebrates its first birthday, it’s worth taking a look back at the first year and looking at a couple of enhancements they’re adding as a birthday surprise. It’s easy to lose sight of the fact that Einstein isn’t actually a product at all, even though Salesforce markets… Read More

Bridging the SDR-to-AE Promotion Gap (Two Leaders’ Perspectives)

A few weeks ago, I shared my research on the failure rate of SDR-to-AE promotions. (Executive Summary: 26% of SDRs who take on an AE role fail. The shorter the SDR tenure, the higher the failure rate. The post-promotion failure rate for SDRs with 11 or fewer months experience was 55%.  The failure rate for SDRs with 16+ months experience was just 6%.)

A few dozen InMails and 1.5K+ social shares later, I’ve concluded that this topic hits a nerve.

The most common feedback I heard was “Yes! I’ve seen this too. What can we do to address it?” I wanted real practitioners to share advice so I reached out to Kevin Dorsey, Head of Sales Development and Enablement at ServiceTitan, and Natasha Miller Sekkat, VP of Demand Generation at ClickSoftware. Rather than post the full transcript, I’ve grouped their

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