What dilution should the first employee expect after a standard $2 million VC led seed raise (pre-revenue/post product)?


This post is by Jason Lemkin from SaaStr


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Expect, after all the rounds, and the IPO … you are diluted 50%. It could be more, it could be less, and if you are acquired tomorrow, the diution of course would be 0%. But seeing your ownership reduced by 50% is a fair and rough way to think about the dilution you’ll face as a first employee all the way to an exit. A few cap tables on this here:
https://www.saastr.com/the-perni… View original question on quora The post What dilution should the first employee expect after a standard $2 million VC led seed raise (pre-revenue/post product)? appeared first on SaaStr.

Join CROs, CMOs and SVPs of Brex, Flexport, Talkdesk, PatientPop, Intacct, Gusto + More on Aug 29 at SaaStr Scale!!


This post is by Jason Lemkin from SaaStr


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We’re doing a new, very cool, all-day, 1-day event in San Francisco on August 29th just on The Playbook. The Playbook:
  • To Recruiting Your Sales Team, with Brex CSO Sam Blong
  • To Scaling High-Performing Teams, with Gusto COO Lexi Reese
  • To Growth Hacking at Scale, with ex-Drift and Segment VP Growth Guillaume Cabane
  • To Defining the Journey from Prospect to Champion with Kathy Lord, SVP Sales at Intacct
  • To Building a World-Class Customer Reference Program, with Talkdesk SVP CS Gillian Hentai
  • To Building a Thriving Sales Culture, with PatientPop SVP of Sales Justin Welsh
  • To Maximizing Sales Efficiency, with Flexport CRO Ben Braverman (title actually WIP, this is a placeholder)
  • 50+ mentoring sessions and AMAs with top revenue, marketing and success leaders
And a ton more amazing, hands-on, sessions where the top revenue leaders just teach you how.  We’ve hand-picked the very top past SaaStr speakers, so you get
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SaaStr Podcasts for the Week with Matrix Partners, ActiveCampaign, Insight Squared, and Dropbox — June 29, 2019


This post is by Deborah Findling from SaaStr


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Ep 245: David Skok is a serial entrepreneur turned VC at Matrix Partners. He founded four companies: Skok Systems, Corporate Software Europe, Watermark Software, and SilverStream Software and did one turnaround with Xionics. Three of the companies he founded went public and one was acquired.

Jason Lemkin is the Founder @ SaaStr, the world’s largest SaaS community and leading early-stage SaaS fund with investments in Automile, TalkDesk, Algolia and more.

Jason Vandeboom is the Founder of ActiveCampaign, a sales and marketing automation platform that enables small businesses around the world to meaningfully connect and engage with their customers. Since 2013 with their transition to SaaS have grown to more than $50 million in ARR in less than five years, while maintaining profitability.

Dave Kellogg is a leading technology executive, independent board member, advisor and angel investor. In his most recent role, Dave was the CEO @ Continue reading "SaaStr Podcasts for the Week with Matrix Partners, ActiveCampaign, Insight Squared, and Dropbox — June 29, 2019"

Synergy Research finds enterprise SaaS revenue hits $100B run rate, led by Microsoft, Salesforce


This post is by Ron Miller from SaaS – TechCrunch


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In its most recent report, Synergy Research, a company that monitors cloud marketshare, found that enterprise SaaS revenue passed the $100 billion run rate this quarter. The market was led by Microsoft and Salesforce.

It shouldn’t be a surprise at this point that these two enterprise powerhouses come in at the top. Microsoft reported $10.1 billion in Productivity and Business Processes revenue, which includes Office 365, the Dynamics line and LinkedIn, the company it bought in 2016 for $26.2 billion. That $10.1 billion accounted for top spot with 17 percent Salesforce was next with around 12 percent. It announced $3.74 billion in revenue in its most recent earnings statement with Service Cloud alone accounting for $1.02 billion in revenue, crossing that billion dollar mark for the first time. Adobe came in third, good for around 10 percent market share, with $2.74 billion in
SaaS Q119
SaaS revenue numbers by company
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Navigating the (Often Tricky) Offer Process


This post is by Ellie D'Amelio from Openview Labs


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You’ve scoured through resumes, interviewed your top candidates, and finally believe you’ve found the one (a little like dating, right?). Now the only thing between you and your dream candidate is an accepted offer. Though the offer process is often tricky and intimidating, it doesn’t need to be. Come prepared by being competitive, involving the right people and negotiating knowledgeably. By doing so, you’ll successfully navigate the “offer maze” and will have a strong shot at landing your #1.

Pulling together a competitive offer

You’ve likely heard it before, but 2019 is truly a candidate’s market. According to a study by Jobvite, recruiting top-tier talent is more difficult than ever. There are more open jobs than there are qualified candidates, more offers being made, and in turn, more competition in landing the most talented people. In order to stand out in such a competitive market, it’s crucial that
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With SaaS sales, is it better to have an annual price or a monthly price, billed annually?


This post is by Jason Lemkin from SaaStr


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It is better for a very long time to let the customer buy how they are most comfortable buying. This removes friction from the sales process, leading to a higher and faster close rate. Let’s take a look at Zoom. Zoom is growing > 100% at $500m in ARR, in an already well established space. It may be the most successful SMB-focused app of our current generation. Zoom does not play games. Zoom lets small groups pay monthly if they want, and easily. No hiding the monthly option, no pricing confusion: In fact 26% of Zoom’s customers still pay monthly, even at $500m+ in ARR: More here: 5 Interesting Learnings From Zoom. As It IPOs. | SaaStr Small business and individuals often prefer to pay monthly, even at a significantly higher price (e.g., often 20%+ higher). Certainly not always, but often. The money is often literally, or figuratively, Continue reading "With SaaS sales, is it better to have an annual price or a monthly price, billed annually?"

How did Slack win the collaboration wars? What makes Slack unique compared to Microsoft teams or Cisco Jabber?


This post is by Jason Lemkin from SaaStr


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I might be wrong, but back in the day when Slack first exploded in ‘14, the key really seemed to be its integrations and the power that provided to developers and product-building teams. Being free I am sure helped … as did the slick mobile and desktop apps … but many chat services are free, and free alone is rarely enough as a growth strategy unless there are no other free products available. Even at launch, these integrations were broad, and included GitHub and others that could provide real-time notifications of product pushes, product changes, code commits, etc. inside of Slack: Slack, The Newest Enterprise Social Network, Is The Latest Effort From Flickr Co-Founder Stewart Butterfield – TechCrunch Today, Slack has grown far beyond its developer and product roots. But back in the day, the “chat” portion of Slack seemed fairly fungible compared to Hipchat and others (which were also
Continue reading "How did Slack win the collaboration wars? What makes Slack unique compared to Microsoft teams or Cisco Jabber?"

What are the core management roles in a SaaS startup?


This post is by jasontest from SaaStr


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There are plenty of folks to hire, but there’s a basic suite of VPs you’ll need to add on the way from $0.1m to $10m in ARR: Marketing, Sales, Customer Success, Product and Engineering. Here’s my suggestion of the optimimum timing and sequencing: What Order Should You Hire Your Management Team In? | SaaStr Once you have even $1m in ARR, you are really ready for all these VPs if you can find them. Ideally, hire them in the perfect order with the perfect timing. But we aren’t in an ideal world. In the real world, after $1m in ARR, hire any great VP you can find. They all should be accretive. And a great VP of Marketing probably will even be accretive earlier than that, maybe even $0.2m ARR: I Hired My VP of Marketing at $20k MRR. It Wasn’t a Week Too Early. | SaaStr View Continue reading "What are the core management roles in a SaaS startup?"

How to build a killer outbound sales team and avoid some common mistakes along the way with Aaron Ross


This post is by Max Barrera from Predictable Revenue


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Strategy Advice from Up & Coming Sales Leader Nicolas Marchais. Lessons Learned on his Quest to Scale his Sales Team to 25 Reps in just Three Years. The post How to build a killer outbound sales team and avoid some common mistakes along the way with Aaron Ross appeared first on Predictable Revenue.