Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.
Yesterday after the bell, Zoom and CrowdStrike reported earnings. The two technology shops, members of the SaaS cohort of public companies that has performed so well this year, had high expectations to meet.
This column noted on Monday that both companies could help set market sentiment regarding SaaS valuations at firms thought to enjoy a strong updraft from COVID-19 and its related market disruptions; working from home means that many companies needed new, better video conferencing abilities and more security tooling, the two things that Zoom and CrowdStrike provide.
If the pair failed to detail strong recent performance, their share prices, long rising, could have dramatically corrected.
But, in a huge boon to public SaaS companies — and, therefore, late-stage private SaaS valuations and early-stage SaaS investment — Zoom Continue reading "Zoom and CrowdStrike hang onto 2020 gains despite huge earnings expectations"
It’s always interesting to dig into a company’s IPO documents and decks after they’ve debuted, as with the benefit of passed time we can learn quite a lot. This is especially true in the case of Atlassian, a company that has seen its share price multiply since its 2015 public offering; outliers are always more interesting than pedestrian results, and Atlassian’s IPO-era materials are fascinating.
In this companion post we continue our dive into the firm’s IPO deck, this time parsing the document from a financial perspective. Ron got the first-person story and the context; here we’ll dig into the company’s reported financial results, with a focus on how well-prepared to grow and profit the firm appeared at the time of its public Continue reading "Ahead of its 2015 debut, Atlassian’s IPO deck detailed a financial rocketship"
Do startup investors care about how employees are treated where they invest?
The reality is VCs for the most part sort of care.
What I can tell you 100% for sure is one you have even a small team, VCs:
Will all look at your Glassdoor ratings. This is so easy to research / see.
Will all do due diligence at least on how CEO is perceived, internally and externally. After all, this is a big part of the bet. At a minimum, they’ll talk to prior round investors for sure. And anyone in their extended network they know that used to work there.
Do background checks on CEOs and generally all co-founders. This is pretty standard. But sometimes, not much deeper than looking for criminal acts, fines, etc.
Are looking for inspirational leaders, especially in SaaS/B2B. After all, you are always selling as a CEO. To customers.
Sales is tough. It’s a lot of No’s to get to a Yes.
And while sales is pretty similar in SaaS at a given price point / ACV, different products are still different to sell. A rep good at one product can fail at selling another.
Training and support matter. Not all reps can work with the limited support, onboarding and training you get at a start-up.
The best reps “get on the board” fairly quickly. They may not immediately hit quota (few do). But they find a way to close something relatively early. At least, 1 or 2 deals. If you don’t see that in 0.5–1 sales cycles, it rarely works out. They lose their confidence. They haven’t been trained properly. They don’t have the right types of leads and prospects.
Want to know how to connect with influencers and VIPs? Here are two word-for-word email scripts you can use in your outreach. “How did you connect with ____?” It’s a question that I get all the time. Whether it’s a VIP that we published an interview with, a publisher whose blog we guest posted on, […]
The post How to Connect with Influencers and VIPs: The Exact Email Scripts I Use appeared first on Groove Blog.
Streaming is way up … even in SaaS. So what are The Top 10 SaaStr Videos of the Week?
Let’s take a look on what you need to get caught up on!
#1: “The Cadence: How to Turn Your SaaS Startup into an Army” With David Sacks. This was a great session from NewNewVenture.com this week where David walks us through what he learned at Yammer, PayPal and more on how to navigate from 50-500 employees. A classic already. Watch it.
#2: “Decacorns & Unicorns in 2020: Founders Fund Keith Rabois and SaaStr’s Jason Lemkin”. Another terrific New New session, and one of the most insightful and open conversations with Keith I’ve seen. We talk a lot about where things really are today, why and how things are and will bounce back, and more.
#3: “Seed Investing Today: What’s Changed, What Hasn’t with Continue reading "The Top 10 SaaStr Videos of the Week: Flexport, Craft Ventures, Aileen Lee, Homebrew, and More"
Outlined below is a collection of key financial and capital market resources from the week ending 5/29.
“If you bought Workday right after IPO and held through today, you’d be sitting on 18.7% IRR and a 2.7x gross multiple of invested capital—buying SaaS equities after IPO and holding long term is foolproof.”
Permabull investors point to Workday as their overwhelming proof that SaaS is a guaranteed successful long term investment. But “long term” is an undefined phrase. In the age of algorithmic and high frequency trading a week could be considered long term. Conversely, per Michael Burry in the early 2000s, “…[I] recommend that members of this investment vehicle judge my performance over a period of five year or greater…this will prove to be the most fruitful and enjoyable manner in which to participate in the fund.” A 5+ year horizon is idealistic considering that
Ep. 337: Christine Trodella is Head of Americas for Facebook’s Workplace product, the communication tool that connects everyone in your company, through Groups, Chat, Rooms and Live video broadcasting. Prior to Workplace, Christine was Head of America’s for Facebook’s Audience Network and before that spent 5 years as a Group Director across multiple different sales and account teams within Facebook’s mid-market channel. Before Facebook, Christine was an Executive Director @ WebMD and before that spent close to 3 years in media sales at Yahoo.
Pssst 🗣 Loving our podcast content? Listen to the start of the episode for a promo code to our upcoming events!In Today’s Episode We Discuss:
How Christine made her way into the world of SaaS as part of a non-SaaS company and how that led to her leading Americas for Workplace by Facebook.
What have been the biggest benefits of scaling a SaaS company within a non-SaaS company? What are the biggest challenges or misalignments of scaling Workplace within Facebook? What have been some of the core and early mistakes the team made in their strategy to build out the Workplace sales and marketing machine?
What have been Christine’s biggest lessons on what it takes to sell really effectively to some of the largest enterprises in the world? What do CIOs most want in pricing? How does Christine think about the pricing problem of having a variable pricing mechanism without disincentivizing usage? How does Christine think about and approach discounting?
Does Christine believe remote is the new normal? What really interesting data have Christine and the Workplace team seen since the world has move to work from home? How has behavior changed on the platform with the rise of remote work?
Ep. 338: These are unique times. In some ways, we can use our playbooks, make adjustments, and in other ways, things are very different. What isn’t likely to be very different is that recurring revenue … recurs. This is the bedrock of SaaS. Hear how Slack CEO, Stewart Butterfield, is adapting to change and his advice on how to take care of your team and customers.