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394: Where is VentureCapital today? Sunil Dhaliwal: I was at one of the biggest firms around and I think we had a $200 million fund and people were like, I can’t believe we’re running $200 million in venturecapital. The first is: It’s the best proxy for AWS growth in the private markets.
In this post I’m going to share the most important lessons about growing a SaaS business that I learned at Buildium—collectively, these things had an awful lot to do with the company being valued so highly. In light of the sale of Buildium last month I figured now is as good of a time as any to reflect on the most important ones.
If building the infrastructure of a SaaS product seems easy nowadays (with AWS and the myriad of developer APIs available), it was not the case fifteen years ago. From web hosting (AWS) to email (Sendgrid) or search (Algolia), there’s no shortage of infrastructure tools available to build a SaaS. Infrastructure. Integration.
There’s an awful lot of nuance here and the devil is in the details. For example, if the product isn’t up to snuff or if the onboarding process is just a bit rough, even perfect execution by the sales and marketing teams will yield lackluster results. I’d need to learn to raise capital and recruit developers.
I’m a vice president at Bessemer Venture Partners, which is a venturecapital firm, which was very lucky to be a part of SendGrid’s journey. We were signing up hundreds of new paying customers every month with five sales reps. How did you take away from the business and actually spend time recruiting?
And I remember like AWS was growing really quickly. And at the time there was a big debate of, “Will big companies ever really use AWS?” And today, of course, we have a recruiting team. We have a great recruiting team and they partner with the hiring managers. And so those people need managers.
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