Recruiters and Startups

For the first seven years as an entrepreneur I stayed as far away from recruiters as I could. My thinking was that I could find the talent I needed on the open market via word of mouth referrals, Craigslist, etc. More importantly, I thought that people that used recruiters to find jobs were only focused…

The Economic Value of Annual Contracts Relative to Month-to-Month for SaaS Startups

Most enterprise Software-as-a-Service (SaaS) startups require an annual contract with their service. A minority of SaaS startups offer a month-to-month option either as the norm or for a premium over their annual contract price. What’s the economic value of an annual contract relative to a month-to-month offering for SaaS startups? How much more do vendors…

Total Financing at Time of Venture-Backed IPO

Continuing with yesterday’s post on Founder Equity at Time of IPO, it’s also important to look at how much money each company raised to get to their S-1 filing for an IPO. As expected, the amount raised and the amount of equity the founders own are correlated, with higher amounts of money raised related to…

Founder Equity Ownership at Time of IPO

In light of the flurry of VC-backed technology company IPO filings this year, one of the more interesting data points was the beneficial equity ownership of the co-founder(s) (e.g. what percentage of the business did they own). Here are a few data points on founder equity ownership at time of IPO: ExactTarget co-founder – 3.8% Yelp co-founder…

Giving Thanks in a Startup

In light of the Thanksgiving holiday here in the United States the topic of giving thanks in a startup is very apropos. Giving thanks is an important part of startup culture and should be incorporated into the standard rhythm. Here are some ways we give thanks by helping others and by enjoying each others’ company :…

Notes from the ExactTarget S-1 IPO Filing

ExactTarget, one of the premier email marketing firms, just filed their S-1 for an IPO. Even as one of the largest SaaS companies in the world, ExactTarget has maintained an exceptional growth rate due in part of the execution of the management team, the continued overall market growth, and the power of the SaaS model.…

What outcome do you want from this meeting?

When meeting with an entrepreneur one of the questions I like to ask early in the conversation is “What outcome do you want from this meeting?” With so many different topics covered in a typical startup-oriented conversation, there’s a tendency to share useful information but not necessarily spend enough time on the most pressing items.…