February, 2014

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The Optimal Average Customer Value for SaaS Startups

Tom Tunguz

What should the optimal revenue per customer be for a SaaS company? I could say million dollar contracts typical of enterprise sales provide more long-term stability and total revenue opportunity. On the other hand I might contend larger customer bases paying smaller license fees enable more predictable growth. Which is the correct argument? First, lets examine the relationship between average customer value and total revenues, to see if smaller customers create a glass ceiling for total revenue

Startup 111
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Measuring your SaaS success

The Angel VC

I recently participated in Marco Montemagno's SuperSummit and gave a webinar about the topic "Measuring your SaaS success". Thanks, Marco, for inviting me! Below are the slides of my talk. Since some of the slides aren't self-explanatory I've added some notes, see the yellow bubbles. If you want to dive in deeper, check out this post , which the talk was based on.

SaaS 108
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Listen to your SaaS customers

Practical Advice on SaaS marketing

Companies get more from software-as-a-service (SaaS) solutions than just lower cost. So says a recent study conducted by IBM. It reveals that companies find that the greatest benefits from SaaS solutions are more collaboration, a better customer experience, and faster time-to-market. For anyone that’s been marketing SaaS solutions for any amount of time, those finding aren’t terribly surprising.

SaaS 100
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Successful Sales Call Structure: A 5-Step Process Plan

CloseSaaS

When selling on the phone, oftentimes sales reps don't understand how to structure a call. If you don’t have the right plan going into a sales call, it’s going to be much harder to close the deal.

Sales 52
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Navigating the Future: Generative AI, Application Analytics, and Data

Generative AI is upending the way product developers & end-users alike are interacting with data. Despite the potential of AI, many are left with questions about the future of product development: How will AI impact my business and contribute to its success? What can product managers and developers expect in the future with the widespread adoption of AI?

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A Brief Outline of Privacy Issues for App Developers.

Aber Law Firm

Every software app developer needs to know about the latest software app privacy issues, so I thought I would provide a brief summary of some of the best published privacy guidelines for app developers. You may have missed it, but the Federal Trade Commission (aka FTC), the Attorney General for the State of California, and the Future of Privacy Forum and Center for Democracy & Technology (aka FPF and CDT), have each created a great privacy guideline document for app developers.

More Trending

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The Things You Do Often Create the Things You Believe

Tom Tunguz

The process of creating the right culture in a startup has always been mysterious to me. Each company’s culture evolves in its own way. I’ve wondered whether the culture is set by the personalities of the founders, or prominently displayed value statements and mission, or biases purposely imposed in the hiring processes like Google’s googliness filter.

Startup 100
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Why the WhatsApp Acquisition Changes Everything

Tom Tunguz

From zero to $19B of business value in five years; WhatsApp’s sale to Facebook is an important moment in the history of the consumer web. The deal proves distribution, reach and large user bases aren’t the competitive moats they once were. Apple’s App Store and Google Play have leveled the playing field to such an extent that a startup can command 10% of the market cap from a $200B company.

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What to Look for When Hiring a Head of Marketing for Your Startup

Tom Tunguz

When a startup is confronted with the prospect of hiring a head of marketing, founders heads often spin. What should be the day-to-day tasks for this person? What skill sets are important? Because of the seeming abstract nature of marketing, founders sometimes delay finding a head of marketing until they feel acute pain, at which point they can clearly identify the attributes of the right candidate.

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The Impact of a Startup's Location on Its Ability to Raise Capital

Tom Tunguz

Great entrepreneurs can come from anywhere. But do the locations of startups affect their ability to raise follow on capital? Do seed stage companies in the Bay Area face lower likelihoods of raising a Series A because of more competition? Or is it that New York based startups, because of a smaller ecosystem, face more difficulty? Using Crunchbase data , I charted the financing follow-on rates across the 12 US cities in which at least 10 seeds, 3 Series As and 3 Series Bs have occured in the Cru

Startup 100
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SaaS: How They’re Turning Payments Into Profit Centers

Discover how top SaaS companies are earning up to $700k + and zero upfront cost with Usio Integrated Payments.

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How to Combat Inaccurate Data and Faulty Statistics When Making Decisions

Tom Tunguz

When presented with figures and numbers and statistics, it’s easy to take the conclusions as fact. Numbers in a spreadsheet carry a finality, a exactitude that belies how inaccurate they can be. In 2005, Stanford professor Johannes Ioannidis turned the world of research and statistics on its head. He published “ Why Most Published Research Findings Are False.

Data 100
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Why Startups Face Increasing Competition in Raising Series As and Bs

Tom Tunguz

Has it become harder to raise money? is a question I hear all the time. On one hand, the total dollars invested by VCs is relatively flat at just under $30B per year, according to the NVCA. On the other hand, the stories of difficulty raising series As and Bs have become a steady drumbeat. To get some sense of the patterns, I analyzed 917 companies from seed through Series B over the past 14 years, using Crunchbase data.

Startup 100
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How Your Startup's Sector Affects Your Ability to Raise a Series A

Tom Tunguz

The average seed stage startup has a 20% chance of raising a Series A according to Crunchbase data for IT startups who raised seed and Series A rounds between 2006 and 2013. But this figure varies significantly sector by sector. Below is a chart of the different startups’ sectors and their rates of raising Series A capital net of the mean of 20%.

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Using Data to Pick the Optimal Name for Your Startup

Tom Tunguz

Naming your startup can be one of the hardest things to do when starting a company. Each founder must agree. The domain must be available to buy. Last and perhaps most importantly, investors need to like it because the first letter of startup’s name has meaningful impact on how easily the company will be able to raise money. Whatever you do, don’t pick a name that starts with the letter J.

Startup 100
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Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You Need to Know

Speaker: Timothy Chan, PhD., Head of Data Science

Are you ready to move beyond the basics and take a deep dive into the cutting-edge techniques that are reshaping the landscape of experimentation? 🌐 From Sequential Testing to Multi-Armed Bandits, Switchback Experiments to Stratified Sampling, Timothy Chan, Data Science Lead, is here to unravel the mysteries of these powerful methodologies that are revolutionizing how we approach testing.

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The Minimum Size Seed Round to Maximize Series A Follow On Investment

Tom Tunguz

How large of a seed round should founders raise to maximize their chances of raising a Series A? Smaller seed rounds are simpler and faster to raise because they typically require fewer investors. They may also require less dilution because of the smaller investment size. On the other hand, to raise a Series A, the startup needs enough runway to hire a team and prove certain milestones to Series A investors.

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Do Larger Seed Rounds Lead to Bigger Series As?

Tom Tunguz

In What’s Up with the Series A , Nikhil Basu Trivedi documents the bifurcation in the Series A market. While there are a handful of startups that raise blockbuster Series As of greater than $10M, the average Series A investment size remains relatively constant over the past 6 years just around $5.3M for US technology companies according to Crunchbase data[1].

Finance 100
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A Brief Outline of Privacy Issues for App Developers.

Aber Law Firm

Every software app developer needs to know about the latest software app privacy issues, so I thought I would provide a brief summary of some of the best published privacy guidelines for app developers. You may have missed it, but the Federal Trade Commission (aka FTC), the Attorney General for the State of California, and the Future of Privacy Forum and Center for Democracy & Technology (aka FPF and CDT), have each created a great privacy guideline document for app developers.

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Bulk Email now available in our "Pro" plan!

CloseSaaS

When we launched Bulk Email a little over 2 months ago, we initially launched it on our highest tier (Business) plan. We wanted to first test the new feature with a smaller audience and to gather feedback and work out any kinks. The feedback has been clear: it's a game changer!

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How Investors & Strategic Buyers Evaluate Integrated Payment Strategies

Explore how integrated payment strategies impact investor and buyer evaluations. Payments are more than a feature — they’re a key to long-term success and market differentiation. They help SaaS companies offer seamless user experiences and efficient operations. Investors and strategic buyers assess these integrated payment strategies as a measure of a company's growth potential and sustainability.

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6 simple steps to getting started with cold sales emails

CloseSaaS

One of the biggest challenges in B2B sales is reaching the right person, the person who can (a) understand the value your software can provide for their company and (b) make a buying decision.

Sales 52
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SaaS pricing: You're too cheap if you never lose customers because of pricing

CloseSaaS

Dare to charge more and then live up to the challenge. It’s not about becoming so affordable that everybody can get some value out of you. It’s about creating so much value that the right customers are happy to pay you a fair price in exchange.

Pricing 52
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Customer case study: colorPlan

CloseSaaS

How does Close save you time or increase your sales? The streamlined interface allows for clearer thinking and entering of key data and info while on a call. More time = more calls, and better data.

Data 52
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Launched: Customizable columns on leads page

CloseSaaS

We're happy to announce we've just launched one of the many changes we're working on to allow you to better see your sales data in more meaningful ways.

Data 52
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Driving Growth, Customer Satisfaction, and Retention through Usage-Based Pricing

As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing.

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How to deal with conflicting advice from investors

CloseSaaS

Just recently, I had a sales office hour with a bright founder, and it was not about how to sell to customers, but how to sell to investors.

Sales 52
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What are your alternatives as a Highrise CRM customer?

CloseSaaS

37signals recently announced that they will change their name to Basecamp and focus the entire company on that one product.

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A Brief Outline of Privacy Issues for App Developers.

Aber Law Firm

Every software app developer needs to know about the latest software app privacy issues, so I thought I would provide a brief summary of some of the best published privacy guidelines for app developers. You may have missed it, but the Federal Trade Commission (aka FTC), the Attorney General for the State of California, and the Future of Privacy Forum and Center for Democracy & Technology (aka FPF and CDT), have each created a great privacy guideline document for app developers.

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A Brief Outline of Privacy Issues for App Developers.

Aber Law Firm

Every software app developer needs to know about the latest software app privacy issues, so I thought I would provide a brief summary of some of the best published privacy guidelines for app developers. You may have missed it, but the Federal Trade Commission (aka FTC), the Attorney General for the State of California, and the Future of Privacy Forum and Center for Democracy & Technology (aka FPF and CDT), have each created a great privacy guideline document for app developers.

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Addressing Top Enterprise Challenges in Generative AI with DataRobot

The buzz around generative AI shows no sign of abating in the foreseeable future. Enterprise interest in the technology is high, and the market is expected to gain momentum as organizations move from prototypes to actual project deployments. Ultimately, the market will demand an extensive ecosystem, and tools will need to streamline data and model utilization and management across multiple environments.

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A Brief Outline of Privacy Issues for App Developers.

Aber Law Firm

Every software app developer needs to know about the latest software app privacy issues, so I thought I would provide a brief summary of some of the best published privacy guidelines for app developers. You may have missed it, but the Federal Trade Commission (aka FTC), the Attorney General for the State of California, and the Future of Privacy Forum and Center for Democracy & Technology (aka FPF and CDT), have each created a great privacy guideline document for app developers.

article thumbnail

A Brief Outline of Privacy Issues for App Developers.

Aber Law Firm

Every software app developer needs to know about the latest software app privacy issues, so I thought I would provide a brief summary of some of the best published privacy guidelines for app developers. You may have missed it, but the Federal Trade Commission (aka FTC), the Attorney General for the State of California, and the Future of Privacy Forum and Center for Democracy & Technology (aka FPF and CDT), have each created a great privacy guideline document for app developers.

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Startup sales: The pair negotiation tactic

CloseSaaS

When you're negotiating a deal, there's always an invisible force working against you: time.

Startup 52