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!"
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?"
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.
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.
The team at PlatoHQ is putting on a great event at the SaaStr CoSelling space next week around engineering growth and career paths. It’s not an official SaaStr event — it’s their gig — but these events they do are of extremely high quality, and very well attended. They are great for folks in engineering leadership, folks that need mentorship in engineering … and also a great chance for CEOs and founders to meet truly great engineering leaders! Sign up here:
Why should you come?Whether you’re an engineering manager wondering what next step you should take in your career, or an executive looking to improve the engineering career ladder in your company, this event is for you! Top managers from Netflix, Stripe, Medium, Checkr and Zoosk will give you insights on the career ladder in their companies and answer any question you may have about stepping Continue reading "Great Event Next Tuesday at CSS: “Rethinking the Engineering Career Path” with Stripe, Checkr, Netflix, More"
You move her/him into an individual contributor role. Or just move her/him out. This is one of the most frustrating outcomes, when a very talented co-founder becomes “unrealiable”. What that really usually means is they just aren’t as committed as you are. And oftentimes, that’s completely logical. Startups are so hard, and it’s so hard to see success in the early days. It’s logical one co-founder may be less committed, and become “unreliable”. Especially if you are working for $0 or a very low salary. It’s almost un-fixable, however. You can try to transition them out. Or you should at least not have them manage anything. That lack of reliability will translate into a toxic culture of folks who are less than 100% committed. View original question on quora The post How would you deal with an unreliable co-founder? appeared first on SaaStr.
It’s getting more and more common these days and it’s not that complicated. The real question is where do you get the money to buy them out. With more and more money into venture, and more and more rounds being oversubscribed, it’s more and more common for there to be options even relatively early (Series A round) to buy out early noteholders and equityholders. I’ve done this myself (buy out earlier shareholders) at the Seed, A and B stages 4 times in the past 12 months. View original question on quora The post Can a company buy back an investor note if the investor wants out of the investment? appeared first on SaaStr.