The Importance of Hometown Investors for Startups


This post is by Tomasz Tunguz from Tomasz Tunguz


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I was eight years old and running with a dime in my hand Into the bus stop to pick up a paper for my old man I’d sit on his lap in that big old Buick and steer as we drove through town He’d tousle my hair and say son take a good look around. This is your hometown My Hometown by Bruce Springsteen Hometown investors, the local group of angels and VCs within a startup community, are an essential part of startup ecosystems.

The Importance of Hometown Investors for Startups


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




I was eight years old and running with a dime in my hand
Into the bus stop to pick up a paper for my old man
I’d sit on his lap in that big old Buick and steer as we drove through town
He’d tousle my hair and say son take a good look around. This is your hometown My Hometown by Bruce Springsteen
Hometown investors, the local group of angels and VCs within a startup community, are an essential part of startup ecosystems. They can be great connectors, providers of advice and most importantly, suppliers of the venture capital to enable startups to grow. I was curious if hometown investment patterns differ across the 10 major cities in the US. I’m defining hometown investment is the share of dollars raised by a startup contributed by investors based in the startup’s hometown. For example, a NYC startup that raises a Continue reading "The Importance of Hometown Investors for Startups"

The Marketing Math Behind Scaling a SaaS Salesforce


This post is by Tomasz Tunguz from Tomasz Tunguz


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A terrific SaaS VP of Marketing once told me, “If the sales team is focused on hitting this quarter’s revenue target, then the marketing team ought to be focused on next quarter and the following quarter.” In SaaS companies, one of the marketing department’s primary responsibilities is generating sufficient customer interest to enable the company to achieve their revenue targets. If that’s the case, determining how and when to scale a sales team in a SaaS company is contingent upon the marketing team’s metrics.

The Marketing Math Behind Scaling a SaaS Salesforce


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




A terrific SaaS VP of Marketing once told me, “If the sales team is focused on hitting this quarter’s revenue target, then the marketing team ought to be focused on next quarter and the following quarter.” In SaaS companies, one of the marketing department’s primary responsibilities is generating sufficient customer interest to enable the company to achieve their revenue targets. If that’s the case, determining how and when to scale a sales team in a SaaS company is contingent upon the marketing team’s metrics. It would be a mistake to hire a swath of salespeople, assign them quotas and then fail to provide them with enough inbound lead flow to succeed. In that case, marketing would be the limiting factor in the business. Of course, some startups ask their salesforces to generate their own leads. But after reading Aaron Ross’s Predictable Revenue and seeing the process implemented in several Continue reading "The Marketing Math Behind Scaling a SaaS Salesforce"

The Insularity of Silicon Valley


This post is by Tomasz Tunguz from Tomasz Tunguz


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Earlier this week, the Commerce Department announced US GDP in Q1 2014 fell by 3%, the most in a quarter since the recession. I’ve linked to the WSJ’s chart depicting the trend above. The decline was 3x greater than forecasted. Silicon Valley seems unfazed. As I wrote about earlier this year, we’ve seen a decline in the public markets of about 25% in consumer stocks and 45% in enterprise stocks. But since that time, public tech companies have witnessed a small recovery.

The Insularity of Silicon Valley


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Earlier this week, the Commerce Department announced US GDP in Q1 2014 fell by 3%, the most in a quarter since the recession. I’ve linked to the WSJ’s chart depicting the trend above. The decline was 3x greater than forecasted. Silicon Valley seems unfazed. As I wrote about earlier this year, we’ve seen a decline in the public markets of about 25% in consumer stocks and 45% in enterprise stocks. But since that time, public tech companies have witnessed a small recovery. Both enterprise and consumer companies are up 18% from their 10 month lows. Below are two charts showing the “average” consumer and enterprise tech company’s share price progressing over time, compared to their share price 10 months ago. A value of zero means the stock is at the same price as ten months ago. A value of 10 means the stock is 10% higher than 10 months
Continue reading "The Insularity of Silicon Valley"

Why Smart Watches Could be a Huge Trend in Mobile


This post is by Tomasz Tunguz from Tomasz Tunguz


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Google revealed many novel projects and products at yesterday’s Google IO Conference. At the moment, I’m most curious about the development of Android Wear, in part because of the beautiful Motorola 360 watch and in part because I suspect connected watches bring substantial change to the mobile device market. It’s easy to write off watches as a niche product. But the addressable market of Android users is now large enough that even a single digit market penetration means tens of millions of users and a potentially interesting new platform for startups to build applications upon.

Why Smart Watches Could be a Huge Trend in Mobile


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Google revealed many novel projects and products at yesterday’s Google IO Conference. At the moment, I’m most curious about the development of Android Wear, in part because of the beautiful Motorola 360 watch and in part because I suspect connected watches bring substantial change to the mobile device market. It’s easy to write off watches as a niche product. But the addressable market of Android users is now large enough that even a single digit market penetration means tens of millions of users and a potentially interesting new platform for startups to build applications upon. Android counts 1B monthly active users on the platform. A 5% marketshare implies 50M watch users. The total mobile market is now sufficiently large that even niche segments amass substantial user bases. For example, phablets, phones with 5 inch screens or larger which are frequently scoffed at, now represent 21% of Android sales. Additionally, watches
Continue reading "Why Smart Watches Could be a Huge Trend in Mobile"

The Five Forces Shaping the Fundraising Market


This post is by Tomasz Tunguz from Tomasz Tunguz


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Last week, the team at Wharton in San Francisco invited me to speak at the Entrepreneurs Workshop. I chose the topic of the “Five Forces Shaping the Fundraising Market” and prepared a Mary Meeker style presentation, with a chart and a bullet point on each slide, to illustrate the forces in tension. It was great fun. I’ve embedded the slides from the presentation above and will link to the video once it’s live.

The Five Forces Shaping the Fundraising Market


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Last week, the team at Wharton in San Francisco invited me to speak at the Entrepreneurs Workshop. I chose the topic of the “Five Forces Shaping the Fundraising Market” and prepared a Mary Meeker style presentation, with a chart and a bullet point on each slide, to illustrate the forces in tension. It was great fun. I’ve embedded the slides from the presentation above and will link to the video once it’s live. To help provide some context to charts, I’ve summarized the five forces below. These are the five major forces shaping the fundraising market today:
  1. The Fundraising Market is Stable, Despite Public Market Fluctuations. The dollars in and out of the venture market are relatively constant. LPs are investing into venture capital at a steady, and likely increasing rate. Over the last five years, dollars into the venture industry has remained at or below the 12 year median. Continue reading "The Five Forces Shaping the Fundraising Market"