My gut was that 50/50 equity splits among SaaS founders were more common than non-equal splits — but I just looked and I’m wrong.
Of the 25+ investments I’ve made, less than half have 50/50 splits. And it looks like only a minority of the SaaS companies to IPO had 50/50 splits.
And looking at them, most seem “fair”. In some cases, the CEO really started the company first, and the others came later. In others, the relative contributions weren’t quite the same. In still others, one founder invested a lot of cash. Etc. etc. And in many cases, the Founder-CEO is granted a subsequent grant for remaining the CEO. This is pretty common (Slack, Box, etc.). That will change the ratios between founders over time.
The founders of Salesforce, the #1 company in SaaS, were not even close to equal. Marc Benioff had far more
Ep. 237: Parker Conrad is the Founder & CEO @ Rippling, the startup that gives you back your time from payroll to employee computers, Rippling makes it unbelievably easy to manage your company’s HR and IT – in one system. To date Parker has raised over $59m in funding from some of the best in the business including Mamoon @ Kleiner Perkins, Garry Tan @ Initialized, Justin Kan, SV Angel and Y Combinator, just to name a few. As for Parker, prior to founding Rippling, he was the Founder & CEO @ Zenefits, the startup he built from $0 to $60m in ARR in just 3 years. Before that he co-founded Sigfig where he grew assets on the platform to over $35Bn across 500k users.
If job postings were the only way to fill a role, many searches for the ideal fit would never end. In a quest for the perfect candidate, your network is your most valuable asset. However, networks, especially good ones, don’t create themselves. In order for your network to be an effective instrument towards achieving your hiring goals, it needs to be built, maintained and appropriately utilized.
Building Your Network
Your LinkedIn connections may include friends, colleagues, family, people you already know, or occasionally, the somewhat out of context request that you accepted. To build a stronger and more useful network, grow it offline.
“So, what do you do for work?”A simple question with an underlying networking goal. The answer provides context, fulfills curiosity, and most importantly, allows you to categorize this new person appropriately in your network. If this person’s work is relevant to yours or if their
Vendor Viability … if they will stay around once you buy. This remains a large risk with start-ups. But it’s been mitigated to some extent in the minds of customers. With 100+ public Cloud companies, it’s now a bit clearer that at least after a certain point in time, SaaS vendors have a lot of stability.
But vendor viability is still a real issue, of course. And large companies know that. A few thoughts on how customers think about it, and how to approach questions around it:
First, large customers have distinct criteria for evaluating and working with “emerging vendors”. They rarely put a small start-up at the true center of a mission-critical operation. They’ll often limit risk by using the start-up first just in one division, or perhaps across the company but in a less-critical segment of operations.
Big Companies have different risk standards for start-ups Continue reading "“Vendor Viability”: It’s a Risk Big Customers Know How to Take. Just Be Honest."
Several years back, Aaron Ross combined some of the best SaaStr content with great new content and case studies into our book, Impossible to Inevitable. So far it has sold over 70,000 copies.
But some of it did need an update. Some of the case studies need some fresh names, and we needed to add a bit more of the science and technology from the past few years in sales and marketing to the content.
Aaron’s team has updated it and it is great!! It’s up for pre-order for release on June 5, but we just got our first copies today.
Some of the great new sections include:
Case Study: How Twilio Nailed A Billion-Dollar Niche By Walking In Its Customers’ Shoes
Case Study: How Sagemount Triples The Value Of A Company In Three Years
Tom Bogan, CEO of Adaptive Insights, a Workday company, will review the key principles to building a successful SaaS company. From team to vision to metrics to funding and more, these principles provide the framework for high-growth, high performing SaaS companies.
Want to see more content like this? Join us at SaaStr Annual 2020.Tom Bogan, CEO @ Adaptive InsightsFULL TRANSCRIPT BELOW
And, how’s everybody doing this morning? How SaaStr so far? Good? All right. So, let me check the audience. How many founders in the audience? Show of hands. Wow. Awesome. How many CEO’s? About the same. Fantastic. So, I’m going to start with just a little bit about my background and we’re going to talk about some lessons I’ve learned in building SaaS companies to scale. So, I’ve had the opportunity to be part of three SaaS companies that we’ve built to 100 billion plus. I’m
Integrating sales into a product-led company isn’t always easy. And while we’ve developed our own way of doing sales at Wistia, I wasn’t always a believer. In fact, I had almost religious beliefs about sticking to a strict self-serve model. At that time, my perception of sales was very black and white. Today, it’s clear to me that there’s actually quite a bit of gray on that spectrum.
Wistia is a video software service that helps small and medium-sized businesses grow with video. We’re an angel-funded company that’s been in business for a little over twelve years now, and we’re proud to say that we’re profitable. Being independently funded has given us the freedom to be true to who we are and take risks that prioritize the long-term employee and customer experience over short-term revenue growth. This has made a huge difference in the kind of company we’ve become over
Imagine a hypothetical startup with 10 account executives that is growing quickly. This startup has two AEs that outperform meaningfully, six that are at typical quota attainment, and two that are underperforming. Where should your sales enablement team focus their time?
This is the team’s performance last year. They generated 8.6M in bookings on 10M in quota capacity (which is really good). Most teams aim for 70-75% attainment.
If the sales enablement teams had focus on the top quartile AEs and improve their performance by 20%, the company would have booked $9.3M. The distribution looks like this.
The two top reps jump from $3.5m to $4.2m in bookings. Nice result. How does it compare to an alternative of improving the middle two quartiles’ performance by 20%?
In this case, bookings grows to $9.5M, a 10% improvement over the baseline and a more modest 2% improvement Continue reading "As Your Sales Team Scales, Focus on Your Middle"