Five Things I’ve Learned about Content Marketing Strategy


This post is by Tomasz Tunguz from Tomasz Tunguz


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Content marketing is one of the most powerful marketing tools startups can employ. Blogs are powerful drivers of awareness and creators of purchasing intent which ultimately lead to new customers, new employees or other new opportunities. This is doubly true as buyers are educating themselves before contacting sales teams to a far greater extent than ever. Below are the five things I wish I would have known when I first started writing this blog.

Five Things I’ve Learned about Content Marketing Strategy


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Content marketing is one of the most powerful marketing tools startups can employ. Blogs are powerful drivers of awareness and creators of purchasing intent which ultimately lead to new customers, new employees or other new opportunities. This is doubly true as buyers are educating themselves before contacting sales teams to a far greater extent than ever. Below are the five things I wish I would have known when I first started writing this blog. I hope they are useful for anyone designing or redesigning a content marketing strategy. Be Very Clear About Your Goal We are all selling something, whether it’s our ideas, ourselves or our company’s products. For a a SaaS company, a blog’s measure of worth is the rate at which it adds email subscribers to its newsletter. In the world of content marketing, emails are the most direct way of translating page views into revenue. Each email Continue reading "Five Things I’ve Learned about Content Marketing Strategy"

Benchmarking Salesforce’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. Salesforce went public more than 10 years ago. This harbinger of subscription, internet delivered software created one of the most exciting waves in software and the single most valuable SaaS company today, worth $37B as of this writing.

Benchmarking Salesforce’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. Salesforce went public more than 10 years ago. This harbinger of subscription, internet delivered software created one of the most exciting waves in software and the single most valuable SaaS company today, worth $37B as of this writing. If I had to choose one chart to describe Salesforce, it would be the one above. Salesforce remains the fastest growing SaaS company on record. More impressively than the growth rates are the scale of the numbers. Seven years after founding, the company generated $500M in revenue. No other SaaS company has come close to the same scale of achievement. Salesforce’s S-1 contains the company’s data all the way back to Salesforce’s second year since founding
Continue reading "Benchmarking Salesforce’s S-1 – How 7 Key SaaS Metrics Stack Up"

The Compression in SaaS Valuations


This post is by Tomasz Tunguz from Tomasz Tunguz


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In 2015, SaaS companies trade at a 30% lower multiple of revenue than last year. In early 2014, the typical SaaS company traded at about 9.2x their next-twelve-months of revenue. Since August 2014, that figure has dropped by about 30% to about 6.0x. Almost every public SaaS company has seen multiple compression. Only RealPage, Qualys, NewRelic, ConstantContact and Hortonworks are at highs in 2015 compared to 2014. The other companies in this basket have have all fallen between 1% and 60%+.

The Compression in SaaS Valuations


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




In 2015, SaaS companies trade at a 30% lower multiple of revenue than last year. In early 2014, the typical SaaS company traded at about 9.2x their next-twelve-months of revenue. Since August 2014, that figure has dropped by about 30% to about 6.0x. Almost every public SaaS company has seen multiple compression. Only RealPage, Qualys, NewRelic, ConstantContact and Hortonworks are at highs in 2015 compared to 2014. The other companies in this basket have have all fallen between 1% and 60%+. Xero, which once traded at a 50x multiple (!) is down to 15x (still the highest multiple of all). Today, there are fewer and fewer outliers, companies trading at heady multiples, compared to 2014. The red dots in the chart above mark outliers, companies trading at multiples greater than 2 standard deviations above the mean. In the last few months, all the outliers have disappeared - Continue reading "The Compression in SaaS Valuations"

The Fundraising Patterns of Unicorn SaaS Companies


This post is by Tomasz Tunguz from Tomasz Tunguz


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Figuring out how much capital your startup may need to raise will inform lots of different strategic decisions. A startup’s growth rate is often highly correlated with the amount of capital it can invest in sales and marketing. More customers means more bookings, which means more capital and so on. The chart above shows the cumulative dollars raised across a basket of more than 50 enterprise software companies. The median company raises $88M before IPO in year six.

The Fundraising Patterns of Unicorn SaaS Companies


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Figuring out how much capital your startup may need to raise will inform lots of different strategic decisions. A startup’s growth rate is often highly correlated with the amount of capital it can invest in sales and marketing. More customers means more bookings, which means more capital and so on. The chart above shows the cumulative dollars raised across a basket of more than 50 enterprise software companies. The median company raises $88M before IPO in year six. These companies typically raised $4-6M in their first and second year of existence. Then raised a Series B of about $15-20M, then a Series C of about $20M and finally a growth round of about $40M. Of course, the medians hide the outliers. Some companies like Veeva raised only $4.5M before IPO and others like Box have raised $571M+, so the distribution has some outliers. As the chart above shows, two
Continue reading "The Fundraising Patterns of Unicorn SaaS Companies"

The Characteristics of the Most Successful Teams


This post is by Tomasz Tunguz from Tomasz Tunguz


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The best teams share two common attributes, according to MIT research: Relatively equal contribution by each member Members with high emotional intelligence. The first characteristic makes sense. A team led by a single dominant person will perform according to the strengths and weaknesses of the (benevolent) dictator. Another team in which the strengths of one member complement the weaknesses of another will certainly be stronger. The second quality, high emotional intelligence, while talked about quite a bit in interviewing training and management training, surprised me.

The Characteristics of the Most Successful Teams


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




The best teams share two common attributes, according to MIT research:
  1. Relatively equal contribution by each member
  2. Members with high emotional intelligence.
The first characteristic makes sense. A team led by a single dominant person will perform according to the strengths and weaknesses of the (benevolent) dictator. Another team in which the strengths of one member complement the weaknesses of another will certainly be stronger. The second quality, high emotional intelligence, while talked about quite a bit in interviewing training and management training, surprised me. But understanding and anticipating others’ feelings seems to the lubricant to help teams achieve greater performance. Amazingly, emotional intelligence impacts team performance as much when working remotely, by email or Skype, as in person. Interviewing for emotional intelligence can be tricky. After all, how can one reliably measure it in a 45 to 60 minute interview? Well, there’s a test for it. A Continue reading "The Characteristics of the Most Successful Teams"