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Dear SaaStr: How Do You Evaluate Startups for Seed Investments? Here are our criteria for SaaStrFund.com : Are both the CEO and CTO insanely good? Its a high bar, but if the founders dont meet it, Ive found there is a 0% chance of making enough money for a venture investment to work out. Better than I was as a founder?
I’ve invested almost $200m as part of SaaStr Fund / 2024. Make the cold email so great, you’d want to invest based on just it alone. Make the cold email so great, you’d want to invest based on just it alone. Is this the type of investments they do? VCs don’t expect investments to be perfect. Not having a great CTO.
I try to work with (and invest in) CEOs that are better than me. Or couldn’t stand your CTO. Dear SaaStr: Why did Jason M. Lemkin Change his Point of View on The Value of a COO for Earlier Stage Startups? I found, when I was a SaaS CEO, that the CEOs that complained about needing a COO early, that it was too hard (which it is), etc.
There are really three modes from a VC perspective during a fundraising pitch: You Almost immediately want to do the investment. This is 80%+ of the investments Ive done. Almost all my investments at SaaStr Fund , Ive told the founders before the meetings end that Im in if everything theyve said checks out. The Almosts.
Investments I've made that didn't work out: – Momentum investment – CEO a bit of bulls**t artist – CEO good at sales but weak product team / CTO. Investments I've made that had so-so outcomes: – CEO not better than me – CEO couldn't control burn rate – Not really SaaS.
Q: What was your failed investment experience and where will you never invest funds again? I’ve made about 30 material investments. Most have been successful, but of course not all have and I’ve been reflecting on the ones that didn’t, because they still had attractive elements when I invested. Great CEO But Mediocre CTO.
Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? You can’t keep investing in the same companies, at the exact same stage, same valuations, etc. When I’ve cut a corner here and invested in startups with customers that aren’t super-happy, it hasn’t worked out as well. But the NPS/CSAT has to be there.
Co-founder and CEO of Plato, Quong Hoang, the #1 mentoring platform for engineering leaders , helped moderate a discussion between CTO of Change.org, Elaine Zhou, and Head of Engineering at Notion, Michael Manapat, on this subject. As a company, you need to invest as much in your employee’s personal growth as they do.
Dan Robinson, current Advisor and former CTO at Heap , shares five essential learnings from nearly a decade of building a SaaS business. What Your Job Is (And What It Isn’t) Your Job is to Make the Company Win A CTO may imagine their primary job is to provide technical expertise, lead engineers, and help build the product.
Jenn Knight, Co-founder and CTO of AgentSync, and Daryna Kulya, Co-founder of OpenPhone, discuss how different approaches have helped each brand reach its target audience and accomplish its goals, the potential of product-led growth, and how to scale growth strategies to yield desirable results. tip their toes in new growth strategies.
I’ve come to almost exclusively invest in founder-CEOs that are engineers. Or at least where the co-founder CTO is a true equal partner to the CEO. Unless again, you have a true CTO as well, that is also leading the company. But usually there is an amazing CTO from Day 1. I look at the 25+ seed investments I’ve done.
As a reminder, the SaaStr Fund is investing $170,000,000 in seed and late-seed investments. Algolia and Legacy Investment Talkdesk in BVP Cloud 100! At SaaStr Annual in September , their CTO will present all the hard data on how it actually works. A big week at SaaStr Fund! Some great news this week: #1. We led the U.S.
He joined StubHub as CTO, but didn’t get nearly as much equity as the other CTO — because he “wasn’t committed enough.” They wanted to invest in apps, not APIs. He went to $125,000,000 in value — all stock — for his start-up to … $0 in 18 months. But a few investors got it.
Invest in customers for life. CEO and co-founder Bill Magnuson was CTO until 2017, then took over as CEO from a co-founder, and owns 4.5%. I love to see a CTO become CEO, and founders pass the baton to each other when it works. That’s a challenge to everyone that says customer growth has to slow at scale. more today.
I’ve come to almost exclusively invest in founder-CEOs that are or were engineers. Or at least — where the co-founder CTO is a true equal partner to the CEO. But usually there is an amazing (in terms of cleverness, if not always pure skillset) CTO from Day 1. I look at the 25+ seed investments I’ve done.
David Sacks: SaaS Background and Investments. David Sacks has invested in over 20 unicorn companies, including Airbnb, Bird, ClickUp, Facebook, Slack, and Uber. David considers product to be its own department that should also report directly to the CEO, instead of falling under the CTO. CTO (40 Employees). Team Size: 12.
” — Jason Riedel, founder/CTO of Aspireship. “When customers get back $100k’s in minutes and want to pay us more” — Kanat Bekt, founder/CTO, SupplyPike. Received 6 unsolicited angel investment offers from ordinary people. “When we had 1 in 5 people using our products across cafes.
Including: CEO Snowflake CEO HubSpot CEO DropBox CEO Descript CEO Clio CEO Flock Safety CEO Own CRO ServiceTitan CMO Databricks CMO Infinite Reality CTO Rubrik CCO Canva CCO Bill CCO GitHub VP AI Wiz CEO Calendly and 100s more!! In addition, this year Mayfield is sponsoring our VC AI Pitch Stage and will invest from $500k-$5m in the winner!
It gives stakeholders an opportunity to assess the benefits and challenges before making additional investment on iterative improvements. cto , infotech , innovation , product , project , saas However, you often get a 70% solution pretty quickly through a Proof of Concept - and it’s often already better than the existing search.
But say this to a VC, and that’s not a sign of founders they want to invest in for the next 5–10 years. “We Our CTO is leaving.” We need the money to get sales and marketing going.” While logical, again, this isn’t what VCs want to hear. Not jump start it. Important to know.
Personally, I’ve made about 30 VC investments (see SaaStrFund.com), 6 of them unicorns, and 0 CEOs have been fired. However, perhaps more importantly, the 2 CEOs I’ve invested in that have decided to bring on an outside CEO, in both cases with the encouragement of the board. That’s when they can fire you.
What makes a bad CTO? What types of due diligence are undertaken by VCs before investing in a company? As a CTO in a startup, what should I do when the CEO wants to interfere with making technical decisions? He has met Adam Neumann for only 4 minutes and decided to invest $4.4 What should I do? How much does a VC make?
Your investors and others will learn a lot more hearing about sales from your VP of Sales, your CTO co-founder … and not you. Just assume none of your investors invest again. Professional investors can even write off any given investment if they have to. All-hands meetings, board meetings, whenever. Yes, you are the CEO.
I’ve invested in 5 start-ups that had a $1,000,000,000+ cash exit or IPO. Almost all of them had an amazing CTO or CPO, and hired a simply epic VP or two. Dear SaaStr: What Qualities Make a CEO The Best In Their Industry? The CEOs were all quite different. Some extroverted, some introverted. Some wicked smart, some merely very smart.
My experience across leading 30+ seed investments, including 4 billion+ exits so far, on why startups fail: Not 200% committed to winning no matter what. There are other reasons startups something do “Good But Not Great” or just OK, but that don’t lead to failure IMHE: Great CEO, Merely Good CTO.
Less and you under-invest. At $8m in ARR, if you have $2m of cash in the bank, you get real nervous investing much more than $500k-$750k, $1m max. It’s subtle, but in SaaS I’ve learned you under-invest if you have < 50% of your ARR in the bank. 5/ Moving from CTO-led -> VPE-led dev team. More here.
A few that I’ve seen across the handful of investments I’ve made … that didn’t work out: Not really committed to going long. A great CTO usually can solve this problem just in time to save the customers, but without one, revenue stalls. What are some qualities of a bad startup CEO/founder in Silicon Valley?
But it can blow up on you if the CTO has issues, or your co-founder is leaving, etc. 50% or more of each investment is in the team. Write your own investment memo. Forget the business plan, but instead, write a memo on why if you were a VC, you’d invest in your own company. Sometimes, they really will just invest Later.
Tips: to manage OKRs, and KPIs with ease with Kashinath Kadaba Shrish, Cofounder & CTO at Fitbots Leveraging new age AI technologies(GPT and NLP) to increase Organic Traffic using Scalenut with Saurabh Wadhawan, CoFounder at Scalenut What are the best marketing channels for SaaS B2B businesses?
On Monday, at TC Disrupt Colin Zima CEO of Omni , Jordan Tigani CEO of Motherduck , Daniel Svnova CEO of Superlinked & Toby Mao CTO of Tobiko Data who are leading the evolution of the Post Modern Data Stack discussed the trends they are seeing. Here are some of the themes & predictions from the group.
As the year starts to wind to a close, one exercise I go through with many CEOs I’ve invested in or am close to is this: Did you ship at least 3 truly game-changing features this year? What were they, and how did they truly move the needle? You’d be surprised if CEOs are being honest how many fail this test. Not just at $0.1m
Ciara Peter (Gainsight VP of Product & Design) and Mickey Alon (CTO & Founder of Gainsight PX) share their practical tips for product leaders looking to achieve business growth. The return on marketing investment is much faster. What does it mean to make your product the star in your SaaS growth strategy?
“Our journey with JFrog started back in November 2015 when I first met CEO and co-founder Shlomi Ben Haim and the JFrog team,” said Jai Das, who is the president and managing director at Sapphire Ventures , which participated in the $50 million Series C investment. “One But even more appealing was the product vision the founders outlined.
Reference other great investments they’ve made, and why they are similar. Share up front why your first CTO left. And no one is in a rush today to invest. But hiding both doesn’t help. #3. Cold outreach and email does work but please, please slow it down and make it great. Truly hyper-personalize it. Share lots of details.
At TechEmpower, we’ve done over 50 technical reviews for budding startups, scaling enterprises, discerning investors, and ambitious companies seeking investment or acquisition. cto , infotech , innovation , product , project , saas Do I really know what’s going on under the hood?
Enough to invest, but not enough to go crazy with. No matter how great a hacker your CTO is. IME, rough order to make hires in: VPM: $0.2m ARR VPS: $1-$1.5m ARR VPCS: $2m ARR VPP: $3m-$4m ARR VPE: $5m-$6m ARR CFO: $10m ARR COO: $20m ARR. More here: [link]. — Jason BeKind Lemkin (@jasonlk) July 21, 2019. Wait longer?
What’s your most recent disclosed investment? Jason Warner , who was CTO of GitHub before and during my time as COO there (and a former partner at Redpoint!) What’s your sweet spot for investing — check size, stage, type of deal? We are currently investing out of our 9th Early Stage fund, a $650M vehicle.
The role of a Fractional ChiefTechnologyOfficer (CTO) is to provide technical expertise and leadership to a company on a part-time or temporary basis. This can be a useful option for startups or small businesses that may not have the resources to hire a full-time CTO or may not need one on a permanent basis.
Our new ChiefTechnologyOfficer (CTO) Andra Milender defected from a medical career track before finding her footing on a technology path. What does your role as the CTO entail? You wear all hats as CTO. The definition of CTO is so broad and that’s what I like about this role! Go Yankees!
As a result, much of the evaluation, investment, and rollout of virtual training technology in 2020 was rushed, limited in scope, and poorly planned. Businesses must take a step back, evaluate their software investments, and rework their implementations. How to maximize customer training investment.
Our first introduction to sales tax was dealing with it as a liability,” CTO and Co-founder David Heinemeier Hansson says. “We The discovery of the lack of sales tax compliance can seriously impact your valuation and an investor’s choice to invest in your company (or even pull back funds). .
It can be beneficial to hire a fractional CTO (ChiefTechnologyOfficer) in a variety of situations. They can provide guidance on which technologies to invest in and help you create a roadmap for the future.
” — Echeyde Cubillo, Co-founder and CTO, Acme Ticketing. Customers don’t want to leave after investing so much time in you, no matter how much they gripe. ” — Siva Narayanan, Co-founder/CTO, FyleHQ. If you don’t, the smaller customers never get the attention they deserve. Are we sure?
Investing at a breathtaking pace. In my first start-up as a founder, I had a great CTO and VPE and a pretty darn good VP Ops from the very beginning. Recently, I spent several hours with a new but great friend who has been on a vaguely similar journey to me. This friend is one of the hardest working people in the industry.
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