The Valuable Startup Equity That’s Not Captured in Your Cap Table


This post is by Tomasz Tunguz from Tomasz Tunguz


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I met a founder a few days ago who captured the idea of building brand equity really well. He said something along the lines of, “Every time we provide a magical experience to a customer, we invest in our brand equity. Each time we do something that disappoints them or overtly extracts value from our users, we expend brand equity.” This founder prided himself on continuously investing in and increasing his business’s brand equity over long periods of time.

The Valuable Startup Equity That’s Not Captured in Your Cap Table


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




I met a founder a few days ago who captured the idea of building brand equity really well. He said something along the lines of, “Every time we provide a magical experience to a customer, we invest in our brand equity. Each time we do something that disappoints them or overtly extracts value from our users, we expend brand equity.” This founder prided himself on continuously investing in and increasing his business’s brand equity over long periods of time. Brand equity is important because it can become a significant part of a company’s value. I copied the image above from an annual Interbrand report on the most valuable brands in the world. In many cases, the brand equity of these businesses are a material fraction of their market caps. The brand recognition and goodwill customers feel towards these brands is an enormously powerful marketing force and hugely-defensible competitive advantage. Continue reading "The Valuable Startup Equity That’s Not Captured in Your Cap Table"

Benchmarking MobileIron’s S-1 – How 7 Key SaaS Metrics Stack Up


This post is by Tomasz Tunguz from Tomasz Tunguz


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This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Founded in 2007, MobileIron is a leader in the Mobile Device Management sector. MDM provides enterprises software to manage the mobile phones and tablets of their employees. MobileIron provides three different products: a server product called Core to define and deploy security policies, a client product named Client that enforces these policies on each device and a gateway called Sentry that secures traffic from the device to the enterprise’s servers.

Benchmarking MobileIron’s S-1 – How 7 Key SaaS Metrics Stack Up


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Founded in 2007, MobileIron is a leader in the Mobile Device Management sector. MDM provides enterprises software to manage the mobile phones and tablets of their employees. MobileIron provides three different products: a server product called Core to define and deploy security policies, a client product named Client that enforces these policies on each device and a gateway called Sentry that secures traffic from the device to the enterprise’s servers. MobileIron employs a hybrid delivery model. The company delivers its product both as perpetual license software and as-a-Service. We will explore the differences in these delivery models and the implications for the business. MobileIron went public on Jun 12, 2014 with $100M in revenue
Continue reading "Benchmarking MobileIron’s S-1 – How 7 Key SaaS Metrics Stack Up"

How Much Cash Should Your Startup Burn?


This post is by Tomasz Tunguz from Tomasz Tunguz


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Bill Gurley and Fred Wilson have focused on burn rates as an important topic for startups. The immediate question that follows this commentary is: How much does the typical startup burn throughout its life? And what is a “risky” burn rate for a company? I use a rule of thumb to evaluate the burn rate of a Series A startup. I multiply the number of employees by about $10-12k, depending on the location of the company.

How Much Cash Should Your Startup Burn?


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Bill Gurley and Fred Wilson have focused on burn rates as an important topic for startups. The immediate question that follows this commentary is: How much does the typical startup burn throughout its life? And what is a “risky” burn rate for a company? I use a rule of thumb to evaluate the burn rate of a Series A startup. I multiply the number of employees by about $10-12k, depending on the location of the company. For example, Bay Area salaries are higher than most other places. If a startup’s current burn rate substantially exceeds the this heuristic, I ask why. But like many others, this shortcut isn’t rooted in analysis. Using a basket of about 60 publicly traded consumer and SaaS companies, I aggregated the net income patterns by years-since-founding. I eliminated outliers to concentrate on the patterns of the “typical” public startup. The bar chart above shows the
Continue reading "How Much Cash Should Your Startup Burn?"

Startup Best Practices 9 – Structuring One on Ones to Maximize Your Team’s Success


This post is by Tomasz Tunguz from Tomasz Tunguz


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The startups that build and retain the best teams develop a huge competitive advantage. It’s no surprise that managers are the most important influencers of team development and retention. The most frequent and consequently most powerful tool for managers to coach, develop and lead their teams are one-on-ones, weekly meetings between a manager and his or her individual reports. Most one-on-ones are ad-hoc, loosely structured 15-30 minute meetings. While extemporaneous meetings can work, leaders who manage their teams this way forgo an important opportunity to further their team’s success.

Startup Best Practices 9 – Structuring One on Ones to Maximize Your Team’s Success


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




The startups that build and retain the best teams develop a huge competitive advantage. It’s no surprise that managers are the most important influencers of team development and retention. The most frequent and consequently most powerful tool for managers to coach, develop and lead their teams are one-on-ones, weekly meetings between a manager and his or her individual reports. Most one-on-ones are ad-hoc, loosely structured 15-30 minute meetings. While extemporaneous meetings can work, leaders who manage their teams this way forgo an important opportunity to further their team’s success. So, how does a manager run excellent one-on-ones? In How Google Works, Eric Schmidt and Jonathan Rosenberg, former-CEO and SVP of Products at Google, articulate the structure for one-on-one meetings prescribed to Google by the legendary mentor Bill Campbell, who has advised Steve Jobs, Scott Cook and many other pioneers, including a few Redpoint founding teams. There are two parts Continue reading "Startup Best Practices 9 – Structuring One on Ones to Maximize Your Team’s Success"

Conducting an effective sales discovery call


This post is by Subraya Mallya from PrudentCloud


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Sales discovery call is an important event in the sales process. Assessing and gaining an in-depth understanding of the prospect’s real need will have a big bearing on how (if at all) you close the deal. While everybody involved in the sales process knows the importance of the discovery call, how it gets conducted leaves a lot to be desired. Having said that, everybody is busy and they will only give you one (maybe two) sittings to discuss the needs. So it is important that you do a thorough job of discovery so you don’t miss out on the opportunity. The key goal of a discovery call should be to understand their current state and what they don’t like about it and the future state and what they would like to see a product do to help.

NOTE: As much as it is a discovery call for you to gauge the prospects interest

Ditch the Pitch
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The Three Frameworks You Need to Create Powerful Presentations and Tell Compelling Stories


This post is by Tomasz Tunguz from Tomasz Tunguz


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I remember many the great TED talks I’ve watched. Sir Ken Robinson’s ,“How Schools Kill Creativity” and the story of a little girl whose genius was unrecognized in school until she was allow do dance, and ultimately became a prima-ballerina, is simply unforgettable. In most of my meetings, I remember Amy Cuddy’s “Body Language” talk for a split-second. Commanding her body language changed her career. And who can forget Steve Jobs announcement of the iPhone?