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I started a software company in college to make it easy to update websites called Content Management Software Now, and I had this idea for Pardot, I wanted to make it easy for marketers to run campaigns online and measure their results. We raised $0 of venturecapital. We started the business in 2007. We sold Pardot.
You have to understand how venturecapital works. 2 “Give the VP of Sales more time.” You can’t always expect a great VP of Sales to double sales in 30-60-90 days. But you have to see progress in one sales cycle. If, in one sales cycle, things aren’t improving on several core metrics, they never will.
We’re over 600 employees, and we’re currently privately backed, and you could see the list of a lot of our venturecapital backers who have some common Silicon Valley names. They are like Kleiner Perkins, Google Ventures. So what is our target market? First off, the land, this is your typical initial sale.
While this is generally true for most companies, it’s particularly true for SaaS businesses, which invest heavily in product development, sales, and marketing upfront and get payments from customers over a delayed period of time, usually several years. The main reason is that your customer acquisition costs are highly front-loaded.
And the very first thing that I did, like any neurotic person is I Googled corporate venturecapital. They might be sales operations challenges. Can we put our product on your paper and your sales team of 4,000, 5,000 people sell a product? To get that distribution all over the world in different marketsegments.
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. Focus on a marketsegment until you dominate it When I arrived at Buildium, we were selling our product only to residential property managers located in the United States. You read that right—two!
While this is generally true for most companies, it’s particularly true for SaaS businesses, which invest heavily in product development, sales, and marketing upfront and get payments from customers over a delayed period of time, usually several years. The main reason is that your customer acquisition costs are highly front-loaded.
There are a number of funding types that serve the SaaS business model, including: VentureCapital: The glamour means of procuring funds for your startup, venturecapital is provided by firms or funds that see high growth potential or a strong track record of recent growth in a SaaS company, enough to merit substantial financial assistance.
New waves of technology come and go in the blink of an eye, each with its own wave of new founders trying to flip their start-up in a newly hot marketsegment. I’d need to learn to raise capital and recruit developers. I needed a disruptive idea. I needed to be on conference stages sharing best practices.
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