Recurring Revenue and Week Over Week Growth

Recurring revenue is incredibly powerful for startups. On the Software-as-a-Service (SaaS) front, recurring revenue gets combined with strong gross margins, strong renewal rates (hopefully!), and strong predictability. Only, it’s incredibly difficult to get the engine going. Paul Graham says growth of 5-7% per week is good (see his Growth essay). Let’s look at how a 5% per…

Over-Communicating in a Startup

I’ll be the first to admit it: I’m not the best at communicating. I have a ton of ideas in my head and I know exactly where we’re going, but I have a tendency to overlook the fact that just because I feel confident about things that everyone else feels confident as well. Fortunately, I recognize that communicating…

Founder Equity Shouldn’t be Common Shares

Back in 2006 and 2007 there were a number of articles talking about a new type of founder stock called “FF class”, named after Founders Fund. These class of shares were designed for founders that might want to take money off the table at some point before selling the company (see this VentureBeat article on Series…

Three Shortcuts to Save Time and Help Get Things Done

I always enjoy little time savers that also help get things done in a more consistent manner. As an example, whenever I get a request to meet I like to use a standard response like “Great, let’s get together. Here’s a link to my self-service calendar on Calendly.” Setting these shortcuts up isn’t hard, but it does…

SaaS Valuations Driven By More Complicated Metrics

Andreesen Horowitz has a great new piece up titled Understanding SaaS: Why the Pundits Have It Wrong. The idea is that SaaS valuations are under intense scrutiny due to the recent run up and down in the public markets. In reality, SaaS companies have financial models and metrics that are more difficult to understand when…

Sales Development Team: Most Important Sales Process Innovation in 10 Years

Kyle Porter shared Craig Rosenberg’s great new post The Sales Development Team: A Proven Framework for Success. Sales development became popular after Predictable Revenue hit the startup circuit a couple years ago. Now that I’ve seen sales development teams in action at several companies, I believe it’s the most important sales process innovation in the last 10 years. Here…