Feld Thoughts Live!: One on One with Brad Feld (Video + Transcript)

We were very fortunate to have Harry Stebbings, Host of The Twenty Minute VC & SaaStr Podcast, take the stage to chat with Brad Feld, Co-Founder and Managing Director of Foundry Group, about his thoughts on a variety of topics, such as venture capital and culture. Brad has a ton of experience as an investor, starting when he sold his first company in the early 90s. He provides eye-opening insights on the relationship between CEOs and investors, the trouble with the term “culture,” the role of the Board of Directors, what your board composition should look like and whether or not people are destined to be successful only at certain stages of scale. Listen on for sage advice from someone with over 30 years of experience. And if you haven’t heard: SaaStr Annual will be back in 2018, bigger and better than ever! Join 10,000 fellow founders, investors and execs
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Intercom: The Unconventional Road to 20K Customers (Video + Transcript)

Every company’s road to 20,000 customers will look different. What did Intercom’s journey look like and what can we learn from it? How did they send up serving 20,000 customers that aren’t just customers but fans of the product and services?  Ilya Fushman, General Partner at Index Ventures, takes the Tactical Stage to interview Eoghan McCabe, CEO of Intercom, on how they did it differently from the competition. Eoghan discusses how Intercom fosters creativity and where it comes from, how they’ve failed and failed again, never cutting corners on customer support, their hiring and talent strategy, and more. And if you haven’t heard: SaaStr Annual will be back in 2018, bigger and better than ever! Join 10,000 fellow founders, investors and execs for 3 days of unparalleled networking and epic learnings from SaaS legends like Eric YuanTomasz TunguzChris O’Neill, and Mikkel Svane. If you don’t
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Small Checks From Large Venture Funds: Maybe One is Enough

Apologies in advance to my friends and colleagues that will disagree and/or dislike this post.  But anyhow … The world of venture fundraising has changed again dramatically the past 24 months.  250+ new seed funds have been raised (wow!) in the past 24 months.  That really is crazy.  And Big Funds have added even more growth capital, bigger core funds, and in many cases, more seed capital themselves.  Competition for the hottest deals is at an all-time high in SaaS (yes, B2B trails B2D by 3-4 years, so now we are catching up there, too). Net net, this means a new explosion of types of funds you can raise capital from in the early-ish days … if you fit the narrow mold of venture fundable startups. This doesn’t mean getting funded is easier.  In fact, even with all these new funds and new Continue reading "Small Checks From Large Venture Funds: Maybe One is Enough"

Over 160 Venture Capitalists already purchased their Unicorn Hunting Licenses for 2018…

Year after year, VCs show up to SaaStr Annual locked and loaded, term sheets in hands, on the hunt for soon-to-be Unicorns to add to their portfolios. From the Founding Partners, Managing Directors and big name SaaS VCs who grace the stage — like 10X unicorn investor Jason Green of EmCap or SaaS legend Tomasz Tunguz, to the firms that send over a dozen of their Partners and Associates — everyone who invests in SaaS has a presence at SaaStr Annual. We also see some private equity firms registering early, and the list of publicly traded companies sending Corporate Development teams is at least 2Xing year over year. Whether you’re in it for the long haul and need cash to scale, or you’re looking for a speedy exit — or even if your dream is to become part of something bigger, where you can watch your product live
SaaStr Annual Silicon Valley VC Term Sheets - fundraising deals get done at SaaStr. Matt Garratt, VP, Salesforce Ventures
Mamoon Hamid, Managing Director, SaaStr Annual Strategy Stage
Tomasz Tunguz, Redpoint Ventures, at SaaStr Annual
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$3 Billion Is the New $1 Billion in SaaS

A funny thing happened as part of the overall bull run the last 2 years: $3 Billion became the New $1 Billion In SaaS.  So maybe it’s time to change the definition of a SaaS Unicorn. Let’s look at Bessemer’s Cloud Index at the last batch of SaaS and SaaS-ish companies to IPO:  Box, Hubspot, Mulesoft, RingCentral, Xero, Zendesk, etc: They are all now $3 Billion+ companies, or close to it. A lot has changed.  I remember in the Series Seed fundraising deck for EchoSign in 2005 (I know, a long time ago), I put on Slide 0 (the cover slide): “Positioned between eFax ($800m) and Salesforce ($2.6b)” to give investors context. Back then, even Salesforce wasn’t at $3b at yet.  Today, the three poster childen for “on prem to SaaS” (Salesforce, Workday, ServiceNow) are worth $130b+ collectively, and Salesforce has grown 40x in value since
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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.

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

Top Hack: Keeping a “Stub” Source of Capital in Your Back Pocket

One of the wonderful things that has changed in the years since I was running my own SaaS company is the rise of “stub” sources of capital.  Investors that, for a variety of reasons, are OK buying fewer shares than the average investor, and often, outside of the timing of traditional venture rounds. The most visceral example is how the top startups out of YCombinator Demo Day raise money.  For the top YC companies, there is always more investors than room to invest, and the startups are often fairly capital efficient.  This combo means they can leverage Demo Days to fine tune the exact amount of capital they want to raise. I wish I had had that luxury.  I didn’t have trouble raising traditional venture rounds.  But the gap in between rounds was tougher. When EchoSign was at about $6m in ARR and growing nicely, and cash flow positive,
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Top Hack: Keeping a “Stub” Source of Capital in Your Back Pocket

One of the wonderful things that has changed in the years since I was running my own SaaS company is the rise of “stub” sources of capital.  Investors that, for a variety of reasons, are OK buying fewer shares than the average investor, and often, outside of the timing of traditional venture rounds. The most visceral example is how the top startups out of YCombinator Demo Day raise money.  For the top YC companies, there is always more investors than room to invest, and the startups are often fairly capital efficient.  This combo means they can leverage Demo Days to fine tune the exact amount of capital they want to raise. I wish I had had that luxury.  I didn’t have trouble raising traditional venture rounds.  But the gap in between rounds was tougher. When EchoSign was at about $6m in ARR and growing nicely, and cash flow positive,
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Continue reading "Top Hack: Keeping a “Stub” Source of Capital in Your Back Pocket"