I’ve watched many bridge rounds over time from a far, and took $500k in bridge capital at EchoSign myself when our seed round didn’t end up being quite enough to get us to the Series A.
But I haven’t really seen bridge rounds from the other side, as an investor, until recently. That’s mainly because over the past 2 years I’ve invested in more early-ish seed companies (vs later seed companies), that often end up needing a second seed, or bridge. And once you start seeing them in action, you see all the many, many mistakes founders make here.
What is a “bridge financing”? Simply put, it’s another round of venture financing from the same investors as the last round. VCs do not like to do this. VCs like to see each round priced 2x-3x the last round, or higher. And generally, they prefer Continue reading "How Bridge Rounds Work in Venture Capital: Messy, Full of Drama, and Not Without High Risk"
Join Algolia CEO Nicolas Dessaigne and Segment VP of Marketing Hollie Wegman for a session discussing best practices for growing your ARR in your SaaS.
Want to see more content like this? Join us at SaaStr Annual 2020.Nicolas Dessaigne, CEO @ AlgoliaHollie Wegman, VP of Marketing @SegmentFULL TRANSCRIPT BELOW
Hollie: So, Nicolas.
Hollie: It’s nice to see you here today.
Hollie: We’re here to talk about why customer centricity is so important to growing multi-digital ARR. I think a lot of times it’s easy to focus on growth tactics: “How do I?”, the demand engine, the sales team, and I think that one of the things that we think a lot about, is how to make the company customer centric, and how important that is as a principle for growth.
Hollie: We had a great coffee-
Nicolas: Yeah. We Continue reading "Building a Customer-Centric Company: Five Best Practices for Growing to Multi-Digit ARR with Segment and Aloglia (Video + Transcript)"
A ways back on SaaStr, we wrote an important post on your customer success leaders — The 5+2 Rule.
That every member of your CS team needs to visit 5 customers in person a month — and be issued 2 customer badges a year (because they visit in-person so often). At least the ones that manage slightly larger accounts ($20k+).
It’s an even better rule to follow today, now that we know the best customers in SaaS literally last decades:
In my first start-up, I had some rough experiences with VC collusion.
I remember I went to one top VC’s Monday partner meeting (which went well) in the morning, and then in the afternoon, visited another. The two firms had not only talked between the meetings, but shared feedback and notes!! I didn’t even know they knew each other, let alone “authorized” them sharing notes between partner pitches. Both ended up passing. I’m not sure they would have without the collusion.
Later, when we finally got two term sheets (from different firms), each lead VC talked to the other without telling us to dictate and manage terms. It was kind of rough. Those 2 term sheets became 1 worst term sheet. Not cool.
At EchoSign, I had a different, but equally painful experience in our seed round. We received 4 offers to Continue reading "It is Better, All Things Being Equal, If Your VCs are Friends"
We’ve talked quite a bit about the pros and many cons of raising prices on existing customers on SaaStr. Our general view, and experience, is that until you are fairly mature, raising prices on existing customer isn’t worth it. It impacts your NPS and relationships. And importantly, it will burn up a lot of internal discussion and brain cycles and won’t really matter. Raising prices on a small group of customers today won’t move the long-term needle. Focus that energy instead on bringing in new customers, and building new editions for your existing customers. Find a way for them to organically buy more from you instead.
A price increase on the existing base can move the needle when you are at say SurveyMonkey’s size and growth profile … but you aren’t there today:
SaaS as we know it probably started in 1999. Salesforce was founded then, NetSuite just before that. SurveyMonkey was founded in 1999, one of the few SMB survivors of that era. There were apps before that (e.g., WebEx was founded in 1995), but Salesforce kicked off the current era, and is the biggest player in SaaS.
That means, especially if you are HQ’d in the Bay Area or have or are opening an office there … the market is flooded with folks with up to 20 years of SaaS experience now. That’s a lot of experience, especially if you are a first-time founder.
We’re quickly approaching our second ever SaaStr Europa, and this time we’ll have 2 full days, with double networking, a stellar lineup of SaaS all-star speakers and of course, the best Happy Hours. With only 100 tickets left, there’s limited space to join the best of the best on 12-13 June in the heart of Paris, so if you’ve been considering attending SaaStr Europa, now’s your chance to snag one of the very last tickets.
In true SaaStr fashion, we’re scaling up the mentoring this time and making it easier for you to find your tribe. We’ve held Braindates, peer-to-peer mentoring sessions, at two consecutive Annuals, and last year’s inaugural Europa, and every single time it’s been a smash hit with our community. So guess what? Not only are we bringing them back, but we’re making them better than ever!
Now there are three ways you can Continue reading "Meet a Mentor or VC with Braindates at SaaSt Europa"
How to turn existing customers into engaged brand advocates New relationships are always exciting—and the business kind are no exception. Your new customers are thrilled to have found a great solution, and you’re excited about your business growth. The issue is that many companies (especially the ones in their early stages) think they have more […]
The post What Is Relationship Marketing And How You Can Use It To Grow Your Business appeared first on Groove Blog.
We’ve written a lot on SaaStr on how to find a great VP of Sales, what the risks are, what risks to take, etc.
We’ve also summarized a few critical factors that will tell you, within 30 days, if your VP of Sales won’t work out. This post was pretty controversial originally, but I think most folks now agree with its conclusions:
But given how often folks still don’t pull the plug on a bad VP of Sales hire for up to a year … I wanted to bullet out a longer, 10 point checklist of Warning Signs. That she or he just isn’t going to work out … at your start-up. Maybe at a different one, at a different time, or stage, or subject matter they might be successful. But