April, 2016

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There are Only 3 Pricing Strategies for Your Startup

Tom Tunguz

Pricing. Is there any word that confers some whisper of dark arts than pricing? Or any question that instills less confidence than, “How did you derive your pricing strategy?” Many times, startups replicate and tune competitors’ pricing strategies. If everyone else prices per seat, then so should we… Is this the right thought process?

Pricing 198
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Truffle pig reloaded – Point Nine is looking for an Associate

The Angel VC

About three years ago, we were looking for an Associate to join Point Nine and put up this landing page : We called the position "truffle pig", because just like a truffle pig is digging up the best truffles from the ground, we as an early-stage VC try to find the best startups among a large number of potential investments. I have to give full credit for the truffle pig analogy to Mathias Schilling and Thomas Gieselmann of e.ventures, by the way.

Startup 127
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Why Drive-by Marketing Doesn’t Work

Practical Advice on SaaS marketing

So you’ve just shipped your new software-as-a-service (SaaS) solution, and for sure you’re eager to tell the world: get out a press announcement, roll-out a search engine marketing campaign, sign-up for industry events, and whatever else you can think of. Here’s some advice: Slow down. As tough as it is to resist the urge to do something , hold off a bit before going full blast with all this marketing activity.

Marketing 113
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3 mission-critical sales lessons from heist movies

CloseSaaS

To many, the archetypal salesperson is a deceptive scoundrel who manipulates people into buying something they don’t need. Think used car salesman meets con artist.

Sales 59
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SaaS Essentials: Failed Payment Solution Guide

For SaaS businesses, improving retention is one of the easiest and most effective ways to drive revenue and profits. With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential. Achieving your retention goals starts with the right solution.

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Links for 2016-04-29 [del.icio.us]

Sixteen Ventures

Sponsored: 64% off Code Black Drone with HD Camera. Our #1 Best-Selling Drone--Meet the Dark Night of the Sky!

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A New Way to Calculate a SaaS Company's Efficiency

Tom Tunguz

There many ways of measuring a SaaS company’s efficiency: magic number, payback period on cost of customer acquisition, lifetime value to cost customer acquisition ratio, quick ratio. These metrics primarily focus on measuring efficiency in customer acquisition. But, a software company’s true efficiency also have to include the cost to service contracts.

SaaS 145
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Introducing the French Cloudscape

The Angel VC

For some reason we keep finding great early-stage SaaS startups in France, and it's not because of my command of the French language. In the last few years we've invested in four awesome SaaS companies from France: Algolia , Front , Mention and Critizr. We recently did #5, which hasn't been announced yet, and are in advanced talks with a potential #6.

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Land, Expand, Retain

Tom Tunguz

In ServiceNow’s Q1 Investor presentation are the first semblances of SaaS metrics in public company reporting. If you sift through the 40+ public SaaS businesses, you won’t find mention of annual recurring revenue, churn, account expansion, or cash collection cycles in most of them - even though these are the the metrics the management teams employ to evaluate and steer their businesses.

Education 129
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The Secret of Exceptional Teams

Tom Tunguz

It’s hard to read Boys in the Boat before I sleep. The stories of the 8 rowers awaiting the coxswain’s call at the starting line of a boat race remind me of the races I competed in with so many wonderful friends and oarsmen. Imagining those races - and in particular, placing second at nationals, the adrenaline surges and my heartbeat accelerates, resurfacing all those memories and moments.

Business 115
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An Omnichannel Payment Solution––Without the Complexity

Simplify omnichannel payments with a solution that unifies every channel through your platform. By integrating front-end systems like online, mobile, and in-store payments with robust back-end infrastructure, you can deliver a seamless payments experience without the need for heavy engineering. Omnitoken technology enhances security by tokenizing card transactions for reuse, enabling merchants to drive cross-selling opportunities.

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Five Charts on the State of the Early Stage SaaS Market in 2016

Tom Tunguz

As the overall venture market environment evolves in 2016, so too does the SaaS and Software segment. The number of Series A, B, C, and D investments in software companies stabilized at roughly 170 per quarter from mid-2013 through mid-2015, before falling 17% in Q4 2015 to a two year low. In Q1 2016, SaaS rounds increased a modest 10%. The SaaS fundraising has slowed in parallel to the rest of the market.

Marketing 100
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Just How Far Along Are We In SaaS?

Tom Tunguz

About 15 years since the creation of the first SaaS companies, public SaaS companies account for 14% of total software revenues generated by public companies, a figure growing at about 17% per year. Over the last ten years, the total amount of revenue generated by software companies has tripled from $53B to $169B, meaning SaaS companies are both taking share and growing the market.

SaaS 100
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Have VCs Changed Their Seed Investment Strategies?

Tom Tunguz

Starting in late 2015 through the first quarter of 2016, founders have shifted their seed fundraising strategies toward a single investor. Seeds led by a single investor have increased by 50% in these trailing six months. How much of this trend is due to greater participation of venture capitalists investing in the seed market? The chart above plots the number of seeds rounds by year.

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Party Rounds in Seeds - Just Getting Started or Has the Clock Struck Midnight?

Tom Tunguz

Party rounds symbolized the heyday of the startup seed market just a last year. Called parties because of the number of investors who collaboratively financed seed rounds of startups, the lists became almost comically long as seed sizes ballooned and investor syndicates swelled with them. Recently, I have heard from founders that they are less interested in party rounds, but does the data support the case?

Finance 100
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Usage-Based Monetization Musts: A Roadmap for Sustainable Revenue Growth

Speaker: David Warren and Kevin O'Neill Stoll

Transitioning to a usage-based business model offers powerful growth opportunities but comes with unique challenges. How do you validate strategies, reduce risks, and ensure alignment with customer value? Join us for a deep dive into designing effective pilots that test the waters and drive success in usage-based revenue. Discover how to develop a pilot that captures real customer feedback, aligns internal teams with usage metrics, and rethinks sales incentives to prioritize lasting customer eng

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Five Questions About The Future of Chatbots

Tom Tunguz

Last week, Facebook launched the messenger chatbot platform, which like Slack, Telegram and others, presents a big market opportunity for startups to innovate. In addition, the companies and products that determine how to most efficiently distribute their product on these new platforms will benefit from user curiosity and less competition, both of which result in lower cost-of-customer acquisition.

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All New Ideas are Combinations of Old Ideas

Tom Tunguz

“All new ideas are combinations of old ideas, but not all idea combinations are created equal,” wrote Frans Johannsen. Mick Pearson designed the Eastgate office building in Harare, Zimbabwe based on techniques he observed termites employ to stabilize the internal temperature of their nests. Remarkably, the Eastgate maintains an ambient temperature between 73-78°F despite variances in external temperatures from 58° to 88°.

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Inside-Outside-Bias in Startups

Tom Tunguz

Daniel Kahneman wrote about his experiences with the inside/outside bias. Kahneman, a team of graduate students, and the Dean of the Hebrew University School of Education collaborated on curriculum for judgment and decision-making for high schools. At one point, Kahneman surveyed his team to estimate the amount of time remaining to complete project.

Startup 100
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The Optimal Seed Round Strategy - Timing and Size

Tom Tunguz

About one third of US startups that raise a seed round raise a Series A. The larger the seed investment, the greater the odds the company successfully raises the next round. A $500,000 seed round results in a series A 20% of the time, while $1.5M seed increases the chances to 30%, an increase of half. larger seed rounds enable early-stage companies to experiment more, hire more aggressively, recover from mistakes better and attain more of the milestones necessary to raise a series A.

Strategy 100
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15 Modern Use Cases for Enterprise Business Intelligence

Large enterprises face unique challenges in optimizing their Business Intelligence (BI) output due to the sheer scale and complexity of their operations. Unlike smaller organizations, where basic BI features and simple dashboards might suffice, enterprises must manage vast amounts of data from diverse sources. What are the top modern BI use cases for enterprise businesses to help you get a leg up on the competition?

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The Future of Machine Intelligence

Tom Tunguz

The Future of Machine Intelligence is a free collection of 10 interviews machine learning experts filed by David Beyer. The interviews explain exactly where we are with the state-of-the-art, the challenges to advanced machine learning, and some of the applications. In the last interview, Oriol Vinyals, a research scientist at Google, describes sequence-to-sequence machine learning, a form of artificial intelligence that has been used to create descriptions of images, and could be used to summari

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Inflation and Deflation in the Startup Fundraising Market

Tom Tunguz

Over the last six years, seed rounds have grown in size by 12% annually. Series As have grown by 14%, series Bs by 9%, series Cs by 14% and series Ds by 11%. In that same timeframe, the median series A and series C has doubled. Median seed rounds have more than tripled in size. This tripling of seed round sizes is a recent phenomenon, taking place in the first quarter of 2016.

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Want to kill it in sales? Take our 30-day self-study challenge

CloseSaaS

Sales reps from all industries and walks of life often ask me: “How do I become really great at sales?” I believe that sales is simply results-driven communication, so my answer is always: become a better communicator.

Sales 59
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Even good advice can be bad advice

CloseSaaS

The most common mistake new entrepreneurs make is looking for “right” answers.

Startup 52
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Prepare Now: 2025s Must-Know Trends For Product And Data Leaders

Speaker: Jay Allardyce, Deepak Vittal, Terrence Sheflin, and Mahyar Ghasemali

As we look ahead to 2025, business intelligence and data analytics are set to play pivotal roles in shaping success. Organizations are already starting to face a host of transformative trends as the year comes to a close, including the integration of AI in data analytics, an increased emphasis on real-time data insights, and the growing importance of user experience in BI solutions.

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How to manage a sales team with Close CRM

CloseSaaS

If you are an SDR or AE at a company that uses Close, here’s an earlier post with some tips for you.

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Sales team hiring: How to handle underdogs

CloseSaaS

Ten years ago, I hired a salesperson with incredible drive. He had recently lost everything—his job, his house, all his money. But he was hungry to get back in the game and work his ass off. He was under-qualified, but what he lacked in experience, he made up for in energy.

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Hey product, your salespeople know something you don't

CloseSaaS

On any given day, the sales and product team play by different rules. Little attention is really paid to the separation of the two. It seems only natural. There go the tech people. New features, roadmaps, and so on.

Sales 52
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Sales team management: How to protect your reps from burning out

CloseSaaS

A couple months ago, you hired an ace sales rep named Mike. When he started out, he was out in the field crushing it every day, making 150–160 cold calls a day, setting up demos, and closing new customers.

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Launching LLM-Based Products: From Concept to Cash in 90 Days

Speaker: Christophe Louvion, Chief Product & Technology Officer of NRC Health and Tony Karrer, CTO at Aggregage

Christophe Louvion, Chief Product & Technology Officer of NRC Health, is here to take us through how he guided his company's recent experience of getting from concept to launch and sales of products within 90 days. In this exclusive webinar, Christophe will cover key aspects of his journey, including: LLM Development & Quick Wins 🤖 Understand how LLMs differ from traditional software, identifying opportunities for rapid development and deployment.

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B2B startup traction: Happy vs successful customers

CloseSaaS

Great news: Your startup landed its tenth customer today. You haven’t seen a cancellation yet, and all your clients are amped whenever you talk to them. You're ecstatic about your startup's traction.

Startup 52
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How to hack your public speaking fears

CloseSaaS

I learned public speaking from the worst person ever—my 5th-grade teacher, Mr. Gramarchek. He was the kind of dude who terrorized little kids, and made them cry almost daily. One day in class, our assignment was to memorize a poem and recite it in front of the class. I was terrified—mostly of Mr.

Sales 52
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Impostor syndrome: How to stop feeling like a fraud

CloseSaaS

Ever get the feeling you have no idea what you’re doing? That everyone else has it all figured out? That you are the only person who doesn’t have all the answers? Ever find yourself saying,“If only I was more like them, everything wouldn’t be so hard”? Bull.

Sales 52