Venture Capital Investment in WorkTech is Booming
Last year, I wrote about “Going from HRTech to WorkTech”. It was my attempt at defining this emerging theme (“WorkTech”) and prognosticating the future. Modeled after Mary Meeker’s annual Internet Trends Report, my goal was to share historical data and insights defining the past, present and future of work and combine it with understanding where […]
Rule of 40 Glideslope Planning
Enterprise SaaS companies need a lot of money to grow. The median company spends $1.32 to acquire $1.00 in annual recurring revenue (ARR) [1]. They need to make that investment for 14 years before getting to an IPO. It all adds up to a median of $300M in capital raised prior to an IPO. With such vast amounts […]
SaaStr 2019 Presentation Preview: Five Questions SaaS CEO Wrestle With
I’m super excited for the upcoming SaaStr Annual 2019 conference in San Jose from February 5th through the 7th at the San Jose Convention Center. I hope to see you there — particularly for my session from 10:00 to 10:30 on Tuesday, February 5th. Last year they ended up repeating my session but that won’t be […]
Highlights from the Fenwick & West 3Q18 Venture Capital Survey
It’s been a few years since I wrote about this survey, which I post about less to communicate recent highlights and more to generate awareness of its existence. The Fenwick & West Venture Capital Survey is must-read material for any entrepreneur or startup CEO because it not only makes you aware of trends in financing, […]
Lost and Founder: A Painful Yet Valuable Read
Some books are almost too honest. Some books give you too much information (TMI). Some books can be hard to read at times. Lost and Founder is all three. But it’s one of the best looks I’ve seen when it comes to giving the reader a realistic look at the inside of Silicon Valley startups. […]
Video of my SaaStr 2018 Presentation: Ten Non-Obvious Things About Scaling SaaS
While I’ve blogged about this presentation before, I only recently stumbled into this full-length video of this very popular session — a 30-minute blaze through some subtle SaaS basics. Enjoy! I look forward to seeing everyone again at SaaStr Annual 2019. (Cross-posted @ Kellblog)
The Big Mistake You Might Be Making In Calculating Churn: Failing to Annualize Multi-Year ATR Churn Rates
Most of thinking, definitions, and formulas regarding SaaS unit economics is based on assumptions that no longer reflect the reality of the enterprise SaaS environment. For example, thinking in terms of MRR (monthly recurring revenue) is outdated because most enterprise SaaS companies run on annual contracts and thus we should think in terms of ARR […]
Bookings vs. Billings in a SaaS Company
Financial analysts speak a lot about “billings” in a public SaaS companies, but in private VC-backed SaaS companies, you rarely hear discussion of this metric. In this post, we’ll use a model of a private SaaS company (where we know all the internal metrics), to show how financial analysts use rules of thumb to estimate […]
The Question that CEOs Too Often Don’t Discuss with the Board
Startup boards are complex. While all board members own stock in the company their interests are not necessarily aligned. Founders may be motivated by a vision to change the world, to hit a certain net worth target, to see their name in an S-1, to make the Forbes 500, or — and I’ve seen crazier […]
The Strong Shall Inherit the Nasdaq
I wrote this post on Feb 3, 2016 — and like clockwork two years later, its timely again. The Dow Jones and Nasdaq are tanking and people are out with stories of imminent end. This too shall pass The unicorn, the billion dollar startup, is finally dead. The same columnists and magazines that turned every startup funding […]
