VCs Outside the Valley Play a Different Game

Andy Rachleff, the founder of Benchmark Capital and Wealthfront, has a new article up titled Demystifying Venture Capital Economics, Part 3. The main point of the post, which isn’t well understood, is that many technology markets are winner-take-all such that most of the venture capital returns flow to the firms that invest in the market winners…

3 SaaS Market Types to Consider

When analyzing Software-as-a-Service (SaaS) market types, it’s helpful to have different frameworks or patterns to compare against. While people like to talk about SaaS in general, the type of market a particular SaaS product is targeting greatly affects things like sales cycle, potential investor enthusiasm, and overall opportunity. Here are three SaaS market types to think…

Comparing Two Strategic Directions

Recently I was talking to an entrepreneur that was making good progress in his startup. After signing a couple dozen customers it became clear that there were two strategic directions to take the business, each with their own pros and cons. We got to talking more about the strategic directions, and even after drilling in, both…

Consulting Services Revenue in SaaS

Several years ago I was biased against Software-as-a-Service (SaaS) startups offering consulting services. The previous thinking was that it was better for the startups to focus exclusively on recurring revenue and to hand off any consulting revenue to partners. Now, I believe the top priority is to deliver an amazing solution and make customers happy. While…

Do More Good Stuff in 2015

2015 is almost here and it’s a great time to make positive changes and do more of the good stuff. Whenever you’re getting ready for bed and reflect on the day, the good stuff becomes readily apparent. Here are a few things that come to mind: Spend more time with family Read more books and blogs…

The Product Manager

In the tech startup world there’s a consistent theme that software engineers and sales reps are two of the hardest positions to fill as the company scales. Well, there’s an even harder position to fill and that’s the role of the product manager (thankfully, a larger number of them aren’t required for each startup). Here’s…