The Angel VC

SEPTEMBER 16, 2013

The last post in my series on DOs and DON'Ts for early-stage startups was about lead generation. The next logical step is sales, and so I want to write about what you can do to convert as many of those leads into paying customers. 7th DO for SaaS startups Build a repeatable, profitable sales process Sales is a very different animal depending on the stage of your company, the market segment you're going after and on whether we're talking about inbound sales or outbound sales.

Scale 153

Scale Sales Hiring Startup Sales 153

Tom Tunguz

SEPTEMBER 4, 2013

I have never worked for a company that was dogmatic about project postmortems but I have always wished I had. After all, project postmortems teach us so much. Learning from the mistakes and experiences of others constitutes the better part of our business education. It’s why we ask successful entrepreneurs to coffee and hang on every word when they speak at conferences.

Enterprise 148

Enterprise Education Startup Communication 148

Chaotic Flow

SEPTEMBER 17, 2013

It’s the dream of every Internet entrepreneur to build a business that goes viral. Yet the sad truth is that most do not. It’s hard to think of any other industry with such a winner-take-all mentality as Internet software. The volatile combination of small market entry costs and big network effects creates wave after wave of disruption and consolidation, and quite a few millionaires along the way.

SaaS 122

SaaS Marketplace as a Service Customer Lifetime Value Acquisition 122

Practical Advice on SaaS marketing

SEPTEMBER 6, 2013

If you subscribe to a software-as-a-service (SaaS) solution, in most cases you can quit whenever you want.* That's great for SaaS customers, but not so great for SaaS providers. It puts a special burden on providers: They need to be sure that the folks buying their solution are actually using their solution. If buyers don't become satisfied users, they'll eventually leave.

SaaS 100

SaaS Acquisition Software Strategy 100

Advertisement

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.

Payment Solutions

Aber Law Firm

SEPTEMBER 23, 2013

Yea I know the $ and the functionality of the SaaS offering are important in any SaaS contract negotiations, but there is a lot more going in the mind of your buyers. I think the best metaphor for this, is from the book “Switch. How to Change Things, When Things are Hard.” Imagine a rider on an elephant. How do you get the elephant to go where you want it to go?

Software Review 52

Software Review Software SaaS Education 52

Tom Tunguz

SEPTEMBER 10, 2013

One of the most frequent questions entrepreneurs ask me is how does their business compare to others? Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. The entire report is well worth reading. Below is my list of the six most important benchmarks and observations from that report.

Benchmarks 110

Benchmarks Startup Sales Hiring Compensation 110

Tom Tunguz

SEPTEMBER 30, 2013

A technology advantage isn’t enough to build an enduring enterprise SaaS company because at the core, all SaaS software share the same architecture. A relational database stores data and a web site presents the data. This is true for CRM (Salesforce), marketing automation (Marketo), email (Exchange), content management systems (Sharepoint) and so on.

Sales Recruiting 100

Sales Recruiting SaaS Machine Learning Artificial Intelligence 100

Tom Tunguz

SEPTEMBER 29, 2013

The single best content marketing channel is email subscriptions powered by Twitter/social media distribution. Thirty days ago, I began an experiment with this blog to determine whether email, Twitter or RSS would be the better content marketing channel. My goals with RSS, Twitter and email are two: first to maintain a relationship with a reader longer than a single website visit by creating a communication channel and second to use that marketing channel to drive re-engagement.

Content Marketing 100

Content Marketing Marketing Startup Social Media 100

Tom Tunguz

SEPTEMBER 26, 2013

The three words roll off the tongue: monthly recurring revenue (MRR). What’s not to love about subscription models? Negative working capital, predictable revenue growth and an average of 13x market cap to annual revenue in the public markets, with some darlings reaching 50x multiples. The list goes on. But the words recurring revenue belies one small detail.

Churn 100

Churn Trends Payment Features Subscription 100

Advertisement

ClinicSense is a SaaS platform that supports over 7,000 massage therapists who use it for appointment management, payments, scheduling, marketing activities and more. Despite having a relatively low payment failure rate, the company discovered that the failures disrupted the customer experience. This often led to churn as customers decided to cancel or abandon their account, preventing ClinicSense from realizing the full lifetime value (LTV) of its users.

Payments

Tom Tunguz

SEPTEMBER 25, 2013

During the past week, I’ve been tapping out letters on a 1921 Underwood portable typewriter that my wife gave me as a present. Sitting in front of it and watching the letter hammers pound ink onto paper reminded me that computer programming is still a very new field. Not 50 years ago, prehistoric programmers punched FORTRAN code on punch cards in this way.

Development 100

Development Web Developers Web Development Mobile 100

Tom Tunguz

SEPTEMBER 24, 2013

On the day of Android’s five year launch anniversary and my fifth consecutive year of using exclusively Android devices, I switched to a yellow iPhone 5c. Like a well worn pair of jeans, it’s easy to grow accustomed to a mobile phone OS. Changing into a new pair is always a little uncomfortable at first. In that same way, migrating from Android to I iOS, I discovered the quirks and kinks of each OS: The iOS keyboard always shows uppercase letters, no matter if the letter being typed is upper or

Mobile 100

Mobile Revenue 100

Tom Tunguz

SEPTEMBER 23, 2013

I’ll never forget the first large tech conference I attended after joining Redpoint. Held in the movie theater in downtown Redwood City, the TechCrunch conference attracted several hundred entrepreneurs, investors and journalists. Not one of whom I knew. After a handful of conferences and a few awkward quick-name-badge-glance-then-say-hello conversations, I started to recognize faces and became friendly with the conference regulars.

Venture Capital 100

Venture Capital Startup Entrepreneurship Scaling 100

Tom Tunguz

SEPTEMBER 19, 2013

We know by heart that half of our marketing dollars are spent improperly. But what’s worse is most products waste half of their chances to deepen a relationship with their customers. There are two different kinds of email within products: product marketing emails and transactional emails. The first of these marketers optimize continuously and the other is oft forgotten.

Engineering 100

Engineering Content Marketing Acquisition Retention 100

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

Revenue

Tom Tunguz

SEPTEMBER 17, 2013

As a PM at Google, I carried a laptop to every meeting I went to. I typed notes, jotted down action items, and distributed the minutes of almost each one of my meetings. I stayed organized and tracked my teams’ progress this way. But, as I learned when I starting working at Redpoint, outside the rainbow bubble of the Googleplex very few people take notes on laptops during meetings.

Management 100

Management 100

Tom Tunguz

SEPTEMBER 16, 2013

After I wrote a post on six important cohort reports , I received a handful of questions about how to interpret cohort charts effectively. When I review cohort data from companies I work with, I look into three different trends to evaluate a product’s performance. This is a cohort chart of hypothetical product indicating percentage of monthly active users each week for 12 weeks.

Data 100

Data Trends Engagement Metrics 100

Tom Tunguz

SEPTEMBER 15, 2013

I’ve been reading Scott Berkun’s book The Year Without Pants which details his working life at Wordpress. The book reveals a thought-provoking collection of lore behind Wordpress and in particular, the day-to-day operations of a distributed volunteer team who built a technology that powers about 20% of the internet. Scott embeds insightful gems about daily startup work life into his stories.

Technology 100

Technology Startup Communication Management 100

Tom Tunguz

SEPTEMBER 12, 2013

The NoSQL movement launched officially in 1999 but rose to prominence much later perhaps closer to 2008 when Hadoop and other key value pair technologies became en vogue. Today, it’s hard to argue with the success of the movement. Large banks, insurance companies, biotech companies and dotcoms rely on NoSQL to power their services and inform their most important decisions.

Innovation 100

Innovation Machine Learning Artificial Intelligence Banking 100

Advertisement

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?

Enterprise

Tom Tunguz

SEPTEMBER 11, 2013

One of the hardest but least spoken about transitions in a startup’s life is crossing people management chasm. At the outset of the startup, there might be three people, then eight, then fifteen. As they grow, startups often create ad hoc managers I call team leads. Team leads manage 3 to 5 people. They work alongside their team, whether engineering, sales or marketing and contribute actively to achieving the goals of that team team.

Sales Recruiting 100

Sales Recruiting Startup Sales Hiring Scale 100

Tom Tunguz

SEPTEMBER 9, 2013

The venture capital fund of the future will perform the same tasks as the venture funds of today: help portfolio companies, evaluate new investment opportunities and build networks of other investors, potential hires, and founders. But to succeed over the next 25 years, venture capital firms must increase the scale and sophistication of each of these duties by order of magnitude through technology.

Venture Capital 100

Venture Capital Finance Technology Startup 100

Tom Tunguz

SEPTEMBER 8, 2013

It’s not engagement. Engagement, (time-on-site, page views, number of sessions per day) is the wrong concept because it doesn’t apply to most products. The best metric is share of habit. Engagement fails the majority of products as the best metric to optimize because maximizing engagement/time-on-site contradicts the product’s purpose. Google relentlessly whittles down the time it takes for users to complete a search.

Metrics 100

Metrics Startup Travel Engagement 100

Tom Tunguz

SEPTEMBER 6, 2013

In a very kind gesture, Ivan Kirigin submitted this blog (and Intercom.io’s blog) to answer the question posed by Disqus, What is the best content marketing campaign you have seen and why? I’m honored by his comment. In response, David Fleck, head of revenue at Disqus asked whether the blog has ever led to an investment and whether that’s the right KPI for it.

Content Marketing 100

Content Marketing Investment Marketing Startup 100

Speaker: Jay Allardyce, Deepak Vittal, and Terrence Sheflin

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.

Trends

Tom Tunguz

SEPTEMBER 5, 2013

It is easy to think the sales process ends once a customer has signed a contract or downloaded an app or created an account. But it’s a huge mistake. Great products have a point of view on the way things ought to work. GMail chose labels over folders for email categorization. Pandora chose recommendations over libraries for music libraries. Looker chose spreadsheets over an SQL prompts for data exploration.

Payment Features 100

Payment Features Education Software Sales 100

Tom Tunguz

SEPTEMBER 3, 2013

Mobile apps are like packaged software, a friend who is a head of product at a successful mobile first company told me over breakfast. On the web, you can launch a product that’s 80% functional to hit a promised launch date. Around 1 am that night, when most users are asleep, you can surreptitiously push an update with bug fixes and new features, reboot the servers, and no one is the wiser. iOS apps don’t work this way.

Web Developers 100

Web Developers Web Development Mobile Development 100

Aber Law Firm

SEPTEMBER 23, 2013

Yea I know the $ and the functionality of the SaaS offering are important in any SaaS contract negotiations, but there is a lot more going in the mind of your buyers. I think the best metaphor for this, is from the book “Switch. How to Change Things, When Things are Hard.” Imagine a rider on an elephant. How do you get the elephant to go where you want it to go?

Software Review 52

Software Review Software SaaS Education 52

Aber Law Firm

SEPTEMBER 23, 2013

Yea I know the $ and the functionality of the SaaS offering are important in any SaaS contract negotiations, but there is a lot more going in the mind of your buyers. I think the best metaphor for this, is from the book “Switch. How to Change Things, When Things are Hard.” Imagine a rider on an elephant. How do you get the elephant to go where you want it to go?

Software Review 40

Software Review Software SaaS Education 40

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.

Artificial Intelligence

Aber Law Firm

SEPTEMBER 23, 2013

Yea I know the $ and the functionality of the SaaS offering are important in any SaaS contract negotiations, but there is a lot more going in the mind of your buyers. I think the best metaphor for this, is from the book “Switch. How to Change Things, When Things are Hard.” Imagine a rider on an elephant. How do you get the elephant to go where you want it to go?

Software Review 40

Software Review Software SaaS Education 40

Aber Law Firm

SEPTEMBER 23, 2013

Yea I know the $ and the functionality of the SaaS offering are important in any SaaS contract negotiations, but there is a lot more going in the mind of your buyers. I think the best metaphor for this, is from the book “Switch. How to Change Things, When Things are Hard.” Imagine a rider on an elephant. How do you get the elephant to go where you want it to go?

Software Review 40

Software Review Software SaaS Education 40

Aber Law Firm

SEPTEMBER 23, 2013

Yea I know the $ and the functionality of the SaaS offering are important in any SaaS contract negotiations, but there is a lot more going in the mind of your buyers. I think the best metaphor for this, is from the book “Switch. How to Change Things, When Things are Hard.” Imagine a rider on an elephant. How do you get the elephant to go where you want it to go?

Software Review 40

Software Review Software SaaS Education 40