The Top 10 Cloud Stories Of The Week: Tech Flees SF, Carta, Dell, TI Calculators and More


This post is by Jason Lemkin from SaaStr


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We crossed 350,000 (!) followers for Cloud Daily! from SaaStr on Quora this week. What were the most popular stories of the week? Let’s take a look: #1. “A study found that tech workers could flee dense San Francisco for suburban-like San Jose in the heart of Silicon Valley amid remote working boom”.  What will San Francisco Silicon Valley look like after this?  We don’t know.  We do know it has flattened. #2: “$3 billion Carta slashed its revenue goal but kept hiring anyway, leading to massive layoffs in April. Insiders describe whiplash and organizational chaos as the company attempts an ambitious new pivot.”  So much change, so quickly, the past 100 days. #3: “Where Are Most Tech Layoffs? Not Silicon Valley”.  The layoffs are happening at many tech companies.  But they are laying off folks based elsewhere more. #4. “Dell Halts Continue reading "The Top 10 Cloud Stories Of The Week: Tech Flees SF, Carta, Dell, TI Calculators and More"

The Top 10 SaaStr Videos of the Week: Flexport, Craft Ventures, Aileen Lee, Homebrew, and More


This post is by Jason Lemkin from SaaStr


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Streaming is way up … even in SaaS.  So what are The Top 10 SaaStr Videos of the Week? Let’s take a look on what you need to get caught up on! #1: “The Cadence: How to Turn Your SaaS Startup into an Army” With David Sacks.  This was a great session from NewNewVenture.com this week where David walks us through what he learned at Yammer, PayPal and more on how to navigate from 50-500 employees.  A classic already.  Watch it. #2: “Decacorns & Unicorns in 2020: Founders Fund Keith Rabois and SaaStr’s Jason Lemkin”.  Another terrific New New session, and one of the most insightful and open conversations with Keith I’ve seen.  We talk a lot about where things really are today, why and how things are and will bounce back, and more. #3: “Seed Investing Today: What’s Changed, What Hasn’t with Continue reading "The Top 10 SaaStr Videos of the Week: Flexport, Craft Ventures, Aileen Lee, Homebrew, and More"

The X’s and O’s of SaaS: Capital Markets Roundup for 5/29/2020


This post is by Sean Fanning from Openview Labs


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Outlined below is a collection of key financial and capital market resources from the week ending 5/29.  “If you bought Workday right after IPO and held through today, you’d be sitting on 18.7% IRR and a 2.7x gross multiple of invested capital—buying SaaS equities after IPO and holding long term is foolproof.” Permabull investors point to Workday as their overwhelming proof that SaaS is a guaranteed successful long term investment. But “long term” is an undefined phrase. In the age of algorithmic and high frequency trading a week could be considered long term. Conversely, per Michael Burry in the early 2000s, “…[I] recommend that members of this investment vehicle judge my performance over a period of five year or greater…this will prove to be the most fruitful and enjoyable manner in which to participate in the fund.” A 5+ year horizon is idealistic considering that
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Salesforce and Workday: “Covid-19 is Slowing Us Down”


This post is by Jason Lemkin from SaaStr


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It can be hard to know what to make of the world today.  On the one hand, unemployment is at close at an all-time high, and many businesses are either shut down or crippled.  On the other hand, as a group, SaaS stocks and companies are at an all-time high: The root cause may be as simple as most of the decacrorns in SaaS seems to be getting a “Covid boost”.  Zoom, Atlassian, Slack, RingCentral, Five9, etc. all support work-from-home.  Some security vendors have become even more important as we’ve moved from having a few offices to, e.g. Zscaler, in essence, 1000s (for each employee in WFH).  eCommerce has been pulled forward by years, e.g. Shopify.  Even companies like VMware are getting a Covid Boost. But most SaaS companies aren’t exactly like these Covid Beneficiaries.  I think most are more Continue reading "Salesforce and Workday: “Covid-19 is Slowing Us Down”"

21 Ways to Market for Growth in This Recession


This post is by Louis Gudema from Openview Labs


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In all recessions there’s a range of responses from companies in the same industry: some thrive and come out with increased market share, while others falter or even go out of business. The natural inclination of many executives is to cut, cut, cut, with marketing in the “first fired/last hired” position. But companies that take that path may be hurting their short-term, and certainly their long-term, growth. As Henry Ford said, “Stopping advertising to save money is like stopping your watch to save time.” The current recession devastated a few industries, like hospitality and travel, virtually overnight. Other industries are feeling modest to major effects, and a few are even thriving. Related: These Cost-Reduction Strategies Aren’t Easy, But They Could Save Your Business Here are 21 ways that companies can use marketing to not just maintain but grow market share over the next 12–18 months. And when I say
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How Much Equity Should a CEO Have? Answer: 6%-15% On Average At IPO


This post is by Jason Lemkin from SaaStr


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Q: How much equity should a CEO get in a startup?

There’s no magical answer, but for venture-backed start-ups, for years VCs have aligned on around 6%-8% equity for a non-founder / outside CEO. As you approach IPO and very late stage, that often goes down.

A few examples.

Dev Ittycheria joined MongoDB as CEO after the Series B, and had 6.3% at IPO:

Jennifer Tejada joined PagerDuty as outside CEO, similarly had 6.4% at IPO as well:

Gregg Schott joined Mulesoft as CEO after founder Ross Mason, and going into the IPO had about 3%:

For founders, there’s no formula. It’s more a function of how much dilution a start-up takes, and that can vary wildly based on # rounds, valuation, etc.

Based on an analysis I did a little while back here, the average Founder-CEO ends up owning about 14% at IPO:

A bit more here: At Continue reading "How Much Equity Should a CEO Have? Answer: 6%-15% On Average At IPO"

I Went on 100 Walks with 100 Leaders. Here’s What I Learned.


This post is by Casey Renner from Openview Labs


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If you asked me in May of 2018 if I thought my (selfie) recorded walk down the Fort Point boardwalk with Manjit Singh would lead to anything more than a one-time post, I would have told you no. Turns out I was wrong. Two years, ~18 miles walked, 17 cities, two continents and 99 episodes later, the #WeeklyWalk is celebrating its centennial! And to help mark the occasion, I wanted to share the 10 biggest things I’ve learned from these walks:
  1. My arm gets really tired after five minutes of holding up my iPhone. I need to either work out more or keep the videos under five minutes.
  2. When it comes to selling—especially to CXOs—most vendors don’t do their research. They try to sell to them without understanding their organization, their pain points or whether they’re even the right person to even be selling to. Know your target!
  3. Informal is
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