As an investor, how do you feel about startups that aren’t necessarily aiming to become 1B+, but have incredible traction and trajectory?

I think it’s OK — in the early-ish days. If you have incredible traction and trajectory, say growing > 15% MoM at $1m in ARR or growing > 25%-30% MoM after $100k in ARR … you are onto something great. If you can’t quite see $1b at that phase, it’s OK. Most of us, if we are honest, can’t, especially in B2B/SaaS where we lack network effects and a pool of free users to draw on. You can figure out what you look like as a Unicorn a little later. You’ll know by $4m-$5m in ARR. But if by then you can’t see it … then I don’t think you’ll achieve it. There are too many people to hire, too many VPs to convince to join, too many jets to get on, too many competitors that will see your progress. And want to take you down. View original question on Continue reading "As an investor, how do you feel about startups that aren’t necessarily aiming to become 1B+, but have incredible traction and trajectory?"

Bring the SaaStr Annual Learnings Back to Your Company — With SaaStr Pro!

Wondering how to bring SaaStr learnings into your company? We’ve got the answer! We’ve curated 100+ of the top SaaStr lessons, along with easy-to-learn-more 3 minute videos from our top speakers, all into one product — SaaStr Pro! SaaStr Pro automatically pushes these weekly lessons to your team in simple, bite-sized chunks; gets them to engage around the learnings; and gets everyone to talk about how to improve your start-up.  The effect?  Magical.  You get us everyone’s emails.  We do the rest.  We train your team! And we’ll send reports back to you so you now everyone is doing their SaaStr homework. Sign up now and you can come to the 2019 SaaStr Annual and, if you want, the first SaaStr Europe in Paris on June 15 for free! Sign up here.   The post Bring the SaaStr Annual Learnings Back to Your Company — Continue reading "Bring the SaaStr Annual Learnings Back to Your Company — With SaaStr Pro!"

How Even Small Teams Can Build Powerful Content Marketing Engines

An Inside Look at OpenView’s Content Strategy

At OpenView, we produce and publish a great deal of content, something you’ve probably realized if you’re a regular Labs reader. But, what many people don’t know is that we’re only able to produce as much as we do (five posts every single week) thanks to a strong, dedicated and expert pool of regular content contributors. This approach to content marketing can work really well for new and even later-stage startups, especially those that might be bootstrapping things in the marketing department. In addition to ensuring that you’re able to consistently deliver intrinsically valuable content, this strategy also helps you attract prospects to the top of your sales funnel and has the added benefit of strengthening your professional relationships within the community you serve. Getting started with your own content network might seem daunting, but it really breaks down into two sides of
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What is uncalled capital?

This is worth understanding as a founder. In any venture fund of a material size (even $50m+), the vast majority of the fund is not used for initial checks into startups. Here’s how it breaks down:
  • First, fees will consume ~20% of most funds. Fees are 2%-2.5% annually in most funds. This declines in later years, but over the 10 year lifetime of a fund, fees typically eat up 20%-25% of the fund. “Recycling” can be used to recapture some of this, in essence (i.e., reinvesting some gains), but let’s put that important nuance aside. Recycling is optional and often doesn’t happen.
  • And Second, often $2 is “reserved” for each $1 initially invested. Most mid-sized and larger firms keep $2 for second and third checks for each $1 they invest in initial checks. It often is a bit lower ($1:$1) for smaller funds, but usually is $2:$1 Continue reading "What is uncalled capital?"

How do you price a SaaS product in a new B2B market?

I’ve lived it. The simplest answer is usually to copy the pricing from the closest public company you can find that is vaguely similar. It’s OK you are doing something different. But someone else out there is selling a product to at least similar buyers. Or at least, that is providing a similar amount of value. Copying that pricing. Salesforce, Hubspot, Box, Evernote, Twilio, Slack, Atlassian, etc. etc. … these folks have figured out good pricing models. Don’t reinvent the wheel on pricing. Even if you are actually reinventing the wheel. View original question on quora The post How do you price a SaaS product in a new B2B market? appeared first on SaaStr.

Who should approve startup CEO expenses?

I would have the board approve CEO salary, all material expenses (>$5k-$10k), and an overall CEO expense policy. In a startup, the reality is a CEO can probably do almost anything she wants. It’s hard for the investors to really police most activity or even be aware of a lot of it. But transparency builds trust. Get everything approved by the Board. View original question on quora The post Who should approve startup CEO expenses? appeared first on SaaStr.