Tom Tunguz

The Fundraising Market Two Quarters into COVID

Tomasz Tunguz

It’s been two quarters since the coronavirus has hit Startupland. And you can see the impact of the shutdown in the numbers. We reviewed the data in May and compared it to the effects of the financial crisis in 2008 on startup fundraising.

Inside Rounds Have Become a Sign of Strength at the Series B

Tomasz Tunguz

In my recent post about the fundraising market during COVID, I wondered aloud about inside rounds. Inside rounds, new financing rounds led by existing investors, have historically been primarily the territory of companies who cannot raise from outside investors at attractive terms.

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Top 10 Learnings from the Redpoint 2020 GTM Survey

Tomasz Tunguz

Yesterday, we shared the Top 10 Learnings from the 2020 Redpoint GTM Survey at SaaS Office Hours. The presentation is embedded below. It contains data on go to market team structure, performance by sales function, marketing spend benchmarks, and customer success priorities.

What is the Structure of the Typical SaaS Company as it Scales?

Tomasz Tunguz

This post is part of a series leading up to SaaS Office GTM Edition on June 24 in which we’re reviewing the results of the 2020 Redpoint GTM survey. Today, we’re answering the question: how do teams grow as a startup scales?

Why Distributed Tracing is Essential for Performance and Reliability

Speaker: Daniel "spoons" Spoonhower, CTO and Co-Founder at Lightstep

Many engineering organizations have now adopted microservices or other loosely coupled architectures, often alongside DevOps practices. Together these have enabled individual service teams to become more independent and, as a result, have boosted developer velocity. However, this increased velocity often comes at the cost of overall application performance or reliability. Worse, teams often don’t understand what’s affecting performance or reliability – or even who to ask to learn more. Distributed tracing was developed at organizations like Google and Twitter to address these problems and has also come a long way in the decade since then. By the end of this presentation, you’ll understand why distributed tracing is necessary and how it can bring performance and reliability back under control.

The Five Important Trends in Data, and the One Megatrend Powering Them All

Tomasz Tunguz

Yesterday, Dremio hosted the Subsurface Conference , the first conference on cloud data lakes. More than 5000 people registered, and more than 2500 attended. If one had doubts that cloud data lakes are a strategic area for many in the data ecosystem, those figures should quash them.

The Startup Sectors Most Impacted by the Coronavirus

Tomasz Tunguz

Which startup sectors are most affected by coronavirus? Roger Lee is maintaining Layoffs.fyi , which is a table of all the startups who have unfortunately cut staff. On the brighter side, it is a resource for startups looking to hire as they grow.

What Customer Demand and Your Startup Balance Sheets Imply about Your Startup's Strategy

Tomasz Tunguz

Among the most useful frameworks I’ve found to manage a company in this era is the 2×2 matrix above. This matrix answers the question: what should the company’s stance be. It also raises the question: when should it change?

Why is the Stock Market Only Down 15%?

Tomasz Tunguz

Why is the S&P index “only” down about 15%? Given all the economic turmoil, shouldn’t the index collapse? I was wondering this so I went to the source of all truth on the internet, Reddit.

Benchmarking Sales Prospecting Volumes, Deal Terms, and Meetings in the Coronavirus Era

Tomasz Tunguz

How do you benchmark a sales organization in a time like this? This is one of the questions that Jim Benton, CEO of Chorus.ai, answers every day in his Daily Briefings. Using data across 10m telephone calls, Jim highlights how the coronavirus is changing sales team performance.

The Connected Journey: Developing your Empathy to Strengthen Strategies for Customer Relations

Speaker: Esther Kieft, Delivery Manager (Group Technology) at Domino's Pizza Enterprises

It is well known that empathy is a key ingredient in creating lovable products, yet not all products offer the best customer experience. From meeting stringent deadlines to insufficient resources being available to carry out customer research, there is a range of reasons why customer empathy could be missing in product development. Join Esther Kieft, as she breaks down using empathy at a distance to evaluate the problems that customers are experiencing during this global health crisis.

California Dreaming - Is Silicon Valley Still the Best Place to Start a Company?

Tomasz Tunguz

So much has happened in the last decade. We’ve seen the rise of massive startups in Europe, South America, China, Israel. Technology entrepreneurship is a global phenomenon.

What Could the Venture Market Look Like in the Coronavirus Era

Tomasz Tunguz

What could happen to the fundraising market in the coronavirus era where organizers cancel events, the financial markets suffer from a bear market, and there is a lot of uncertainty? The most recent event to use as an analogy is the 2008 financial crisis.

Where are Most Unicorns Headquartered?

Tomasz Tunguz

Earlier this week, I wrote Californian Dreaming - Is Silicon Valley Still the Best Place to Start a Company , where I analyzed the IPO and M&A trends of venture-backed companies by state. Those metrics are lagging indicators of startup distribution. How will the distribution change with time?

How Would You Manage Your Business Differently if Shelter-in-Place Lasted 18 Months or More?

Tomasz Tunguz

If the shelter-in-place order were to remain in place for another 12 months, how would you change the way you run your business? Over the past two months, CEOs and founders have managed the turbulence imposed by the coronavirus onto their companies.

The Best Sales Forecasting Models for Weathering Your Goals

Every sales forecasting model has a different strength and predictability method. It’s recommended to test out which one is best for your team. This way, you’ll be able to further enhance – and optimize – your newly-developed pipeline. Your future sales forecast? Sunny skies (and success) are just ahead!

Two Charts that I've Been Wondering About

Tomasz Tunguz

Lately, I’ve been reading a lot about the stock market, the economy, and geopolitics, always a dangerous combination. I’ve come across two charts that I have been wondering about. The first comes from Bloomberg via the BEA.

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What I Expect in the Next Few Months in Startupland

Tomasz Tunguz

I was on a panel yesterday to speak about the impacts of the coronavirus on financial markets and startups. Later in the afternoon, I read the Sequoia black swan memo. So I figured today, I’ll summarize my outlook on the next few months. Startup Growth Rates.

What is a Best in Class Payback Period for a Software Company in 2020?

Tomasz Tunguz

Payback period is one of the best composite diagnostic metrics of product market fit. I've written before about the benefits of short payback periods. In short, startups with shorter payback periods require less capital and also grow more quickly. In 2020, what is an excellent payback period[1]?

Narrative Economics and the Power of Stories

Tomasz Tunguz

If I start a salacious tweetstorm that our local bank is running out of money, that rumor will circulate quickly. Eventually, the rumor will trigger a bank run. By tomorrow, the bank will face insolvency, even though it was business as usual at the bank this morning.

The North Star Playbook

Every product needs a North Star. In this guide, we will show you the metrics product managers need to tie product improvements to revenue impact. If you are looking for a more-focused, less-reactive way to work, this guide is for you.

What do Google Search Query Trends Reveal about the Changes in How We Work?

Tomasz Tunguz

I was reading an article in the NY Times about how we’re all using much more internet than we have been. Consequently, YouTube is throttling video quality, and some of our services are slower than before.

The Strategic Importance of Competition

Tomasz Tunguz

When I started in venture capital, one of the questions I learned to ask very early on was competition. Founders would often reply that competition validates the opportunity. At the time, I thought it was a canned response, a clever parry, to avoid answering the question directly.

Redpoint 8 - Our Eighth Early Stage Fund

Tomasz Tunguz

Much has changed in the world since we announced our last early stage fund in 2018, especially in the last several months, as so much of our day-to-day lives have been reshaped by the coronavirus pandemic.

The SaaS Marketing Scorecard - How Does Your Marketing Operation Rank?

Tomasz Tunguz

The 9 Disciplines of Great SaaS Companies remains one of the most popular posts on marketing on this blog. It’s a wonderful framework by Bill Macaitis, who was the CMO at Zendesk and Slack.

How to Choose the Best Embedded Analytics Solution to Modernize Your Application

If you are looking to modernize your application to improve competitiveness, then one of the quickest wins you can have is to embed sophisticated analytics that will wow your existing and prospective customers.

How to Recruit a Marketing Team with Great Product Marketing and Demand Generation Abilities

Tomasz Tunguz

Marketing has many disciplines. Bill Macaitis counts nine. Gabe Larsen enumerates more. Howeve you may count and divide marketing skills, marketing is the team with the broadest mandate of different techniques to master. To handle this complexity, some startups have split the role under two leaders: a head of product marketing and a head of demand generation. This organizational pattern isn’t an anomaly. I searched on LinkedIn for VP Demand Generation. 464k results.

Surveying Sales Leaders - How Coronavirus is Impacting Quotas, Bookings, and Budgets

Tomasz Tunguz

Sam Jacobs created the Revenue Collective , a group of more than 1700 sales professionals at some of the fastest-growing companies. With chapters across the US, Revenue Collective has broad reach within the sales community.

Cloud Data Lakes - The Future of Large Scale Data Analysis

Tomasz Tunguz

Cloud Data Lakes are a trend we’ve been excited about for a long time at Redpoint. This modern architecture for data analysis, operational metrics, and machine learning enables companies to process data in new ways.

Observations about Silicon Valley Two Weeks into Quarantine

Tomasz Tunguz

What’s going on in Startupland? Venture rounds are closing. We’ve seen seeds, As, Bs, and growth rounds in the past few weeks. And round announcements continue. Valuations are coming down a bit, but they are all over the map.

The Revenue Leader's Guide to Prospecting

Speaker: Christopher Ryan, Founder and CEO of Fusion Marketing Partners

Sales & Marketing departments that work together guarantee higher acquisition, better nurturing, and more effective sales. Join Christopher Ryan for this insightful webinar, presenting the wide funnel lead nurturing model. Don't miss out on this opportunity to get your teams working together and your revenue performance optimized.

Why is the Stock Market Only Down 15%?

Tomasz Tunguz

Why is the S&P index “only” down about 15%? Given all the economic turmoil, shouldn’t the index collapse? I was wondering this so I went to the source of all truth on the internet, Reddit.

Notes from Office Hours with Lisa Lawson

Tomasz Tunguz

Recently, we welcomed Lisa Lawson to SaaS Office Hours to talk about building a channel go-to-market strategy for SaaS companies. Lisa built the channel at Optimizely, which accounted for a meaningful fraction of new business.

Notes from Office Hours with Hollie Wegman

Tomasz Tunguz

Recently, we welcomed Hollie Wegman to SaaS Office Hours to talk about marketing to developers. It was our first virtual event, and we had hundreds of people attend. Given the success of the format, we are going to continue it.

Why Your Startup's Org Chart is Limiting Your Growth

Tomasz Tunguz

This is the theoretically ideal organizational chart of a startup. There’s a CEO at the top in red, VPs in orange, senior contributors in dark gray, team leads in green, and junior individual contributors in light gray. This is the org chart of the typical startup.

The Rise of Embedded Self-Service Analytics

Speaker: Chris Von Simson & Nat Venkataraman

Can your users get the data and analytics they need without leaving your application? Watch this webinar with Chris von Simson of Dresner Advisory Services as he shares why user enablement has emerged as the theme in today’s embedded analytics landscape.

How Should You Structure Sales Teams for Optimal Performance?

Tomasz Tunguz

This post is part of a series leading up to SaaS Office GTM Edition on June 24 in which we’re reviewing the results of the 2020 Redpoint GTM survey. Today, we’re answering the question: how should you structure your sales teams for maximum performance?

The Unforeseen Benefits of Online Events

Tomasz Tunguz

In this era, virtual events have replaced IRL events. Virtual events have many obvious benefits. No hotels, no event venues, no catering, no ensuring guests are in the right city at the right time. But there are unanticipated benefits that are only now coming to light. Many of our portfolio companies have experimented with virtual events quite successfully. We have done the same with our Office Hours program.

The Great CEO Within

Tomasz Tunguz

If you’re looking for a primer on many of the responsibilities of being a startup CEO, read The Great CEO Within. Matt Mochary wrote the book. He founded a company which he sold to MCI and now coaches startup CEOs, amongst other philanthropic efforts.

Estimating the Impact of the Coronavirus on Growth

Tomasz Tunguz

As we readjust to the impacts of the coronavirus, I’ve been asking myself: what is a basic useful model for estimating the growth impact to a software company? Of course, every business should develop a more conservative model, focused primarily on cash management to provide a longer runway.

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Build or Buy an LMS? How to Pick the Right Solution for Your Budget

BUDGET. When it comes to picking your next LMS that six-letter word is probably the most important part of the decision-making process. So, what are your options to get the best possible eLearning solution without breaking the bank? Build it or buy it. This guide from Lambda’s eLearning experts details absolutely everything you need to consider so you can pick the perfect eLearning solution for your organization and budget.