November, 2012

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Yummy, dog food! Or: Running a VC fund in the Cloud

The Angel VC

Point Nine not only loves animals , we also love dog food. After all, some months ago we invested in ePetWorld , which runs hundeland.de , a fast-growing online shop for dog food and supplies. Today I'm going to talk about a different type of dog food though. If you know us a bit you'll know that we talk a lot about the Cloud. In our opinion, the move of software from the desktop or local servers to the Cloud, along with the consumerization of enterprise software and other developments that go h

Cloud 140
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SaaS companies can't afford to sell

Practical Advice on SaaS marketing

Most companies offering a software-as-a-service (SaaS) solution can't afford to sell it. I'm talking here about "selling" in the traditional sense: finding prospects and convincing them to buy a product or service. In some cases that's done with experienced sales executives working their Rolodex (or its electronic equivalent). Or it might be sold by a team of inside sales reps making cold calls from a purchased list.

SaaS 124
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Segmenting customer pipelines

Tom Tunguz

When building a freemium SaaS company or an ecommerce company or any product that requires users to move through a funnel towards an objective, it’s important to track this funnel to understand where the funnel can be improved. But tracking one funnel may not be enough. The aggregated funnel may be masking conversion differences across customers segments.

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The 3rd DO for SaaS startups – Create an awesome product

The Angel VC

With some delay I'd like to continue my little series: 3rd DO for SaaS startups Create an awesome product This one is a little tricky. Firstly because it feels like I'm just stating the obvious – who doesn't want to create an awesome product? Secondly because it's hard to offer a lot of useful advice in a blog post on a topic which shelves of books have been written about.

Startup 136
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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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Data on the “seedpocalypse”

Tom Tunguz

Call it what you like. The Series A Crunch or Silicon Valley’s Financial Cliff, there’s a lot of talk about the challenge seed stage companies facing insurmountable odds raising Series A investment - PandoDaily’s analysis pegs the odds at 20% based on anecdotal data. The three horsemen of the seedpocalypse. In the past 3 years, the three major trends influencing the seed market are: The decreasing cost of starting a company is balanced by growing labor costs.

Data 100

More Trending

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VC investment trends in the consumer web

Tom Tunguz

Fred Wilson’s perspectives on trends in consumer web investment created a big brouhaha over the weekend. Commenting on a WSJ article , Wilson offered his confirmatory observations that follow-on investments in the consumer web have become more challenging as momentum investors have shifted toward enterprise. Over the past 18 months, valuations of later stage consumer internet companies have ballooned into the hundreds of millions propelled by enormous user growth.

Trends 100
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The cognitive burden of unbundling

Tom Tunguz

Department stores. Computer software. And even education. Products and services are being broken into their atomic units and optimized for price, selection, features and, most importantly, customer satisfaction. This is an inexorable trend that cannot and should not be stopped. Roger Ehrenberg in a post called “The Great Unbundling”. This unbundling is happening.

Education 100
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A Startup’s Two Financial Plans: the Board Plan and the Stretch Plan

Tom Tunguz

Last week I wrote about the importance of a financial plan for startups at every stage. It’s a challenge to balance the predictability the board requests and the ambition the company wants. Often, as startups grow, they adopt two plans: a board plan and a company plan. By creating two plans and presenting each to the right audience, founders can communicate and motivate their teams effectively.

Startup 100
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Financial planning for startups

Tom Tunguz

Over lunch last week, I asked a Redpoint entrepreneur, who had recently sold his company, how his board could have been more helpful to him. His answer surprised me. He wished the company had built a financial/operational plan sooner. Building an financial plan is challenging and it is often perceived as a waste of time because the plan can be so inaccurate.

Startup 100
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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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Great products are like ducks

Tom Tunguz

Great products are like ducks. They are calm above the water but paddling furiously below the water. An entrepreneur told me this quip last week and I think it had great wisdom in it. In other words great products are graceful. They make something complex look effortless. Great athletes are the same. So are great dancers. And even great entrepreneurs.

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The stewards of vision and culture

Tom Tunguz

Vinod Khosla penned a great overview of the three phases of a company this weekend. He identifies the hub and spoke phase, the organized chaos phase, the functional management phase. Once a founder has experienced each of these phases, it’s easy to identify the them in retrospect. But companies don’t transition from one phase to another in discrete steps.

Startup 100
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Partnerships for startups: key deal terms

Tom Tunguz

Yesterday’s post on distribution partnerships for startups elicited a few comments and questions about other important elements startups should consider when contemplating partnerships. I’ve listed a few other major partnership elements below. Qualifying the Partnership. Quality of inbound traffic - As part of measuring the cost/benefit of a partnership, it’s critical to understand quality of traffic/customers from a distribution partnership, as @jamesreinhart pointed out.

Startup 100
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Distribution partnerships for startups

Tom Tunguz

When a startup is approached by an established company about partnership, it can be a very exciting time. Sometimes partnerships change the trajectory of a startup. Other times, the weight of partnerships can crush startups. Servicing a much larger partner’s needs with a small team can be a full time job and deprive the startup of any time to advance their independent projects.

Startup 100
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The Big Payoff of Application Analytics

Outdated or absent analytics won’t cut it in today’s data-driven applications – not for your end users, your development team, or your business. That’s what drove the five companies in this e-book to change their approach to analytics. Download this e-book to learn about the unique problems each company faced and how they achieved huge returns beyond expectation by embedding analytics into applications.

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Honest cultures in startups

Tom Tunguz

This morning NPR profiled an education researcher comparing and contrasting the way different cultures approach intelligence and learning in schools. Though the debate about education methodologies is fascinating, I found the one of the stories in the report reminded me of the importance of transparent cultures in startups. In 1979, Jim Stigler, a researcher from UMich went to study education in Japan.

Startup 100
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Honest cultures in startups

Tom Tunguz

This morning NPR profiled an education researcher comparing and contrasting the way different cultures approach intelligence and learning in schools. Though the debate about education methodologies is fascinating, I found the one of the stories in the report reminded me of the importance of transparent cultures in startups. In 1979, Jim Stigler, a researcher from UMich went to study education in Japan.

Startup 100
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The trinity of product design

Tom Tunguz

Yesterday, I watched as a friend of mine created an Expensify account for his startup. He was trying the product for the first time. I took notes without saying much. The experience reminded me of the hours I spent in Google’s usability labs watching people use our AdSense Demographic Targeting beta product. In those sessions, I remember feeling a sense of excitement followed by frustration - even disillusionment.

Education 100
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The culture of data science

Tom Tunguz

In a triumph of statistics, Nate Silver predicted the outcome of every state in the Presidential election correctly. What makes this story so noteworthy isn’t that it proves data enables superior decision-making to human intuition. We know the math works. Instead, Silver’s success highlights and challenges the prevailing culture, present in politics and in the workplace, that overvalues intuition and undervalues data.

Data 100
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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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Radio Ga Ga

Tom Tunguz

Must content platforms be reinvented every few years? Left to its own devices, the mob will augment, accessorize, spam, degrade and noisify whatever they have access to, until it loses beauty and function and becomes something else. Seth Godin. Given the noise and misinformation disseminated on Twitter both during the election and the Sandy disaster , I’ve been wondering how Godin’s thoughts apply to new information networks: blogs and feeds.

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Mobile OS trends in five charts

Tom Tunguz

In May 2010, I bet a good friend of mine that Android would overtake iOS in total devices shipments in 12 months' time. My prediction was completely off the mark. In May 2011, iOS led cumulative shipments by more than 100%: 191M to 95M. It would take another 10 months for Android to equal Apple in March 2011 at about 325M each. Race to one billion devices.

Mobile 100
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A great entrepreneur can come from anywhere

Tom Tunguz

There’s a Pixar movie that captures the ethos of Silicon Valley’s entrepreneurship culture which it summarizes this way: While not everyone can be a great chef, a great chef can come from anywhere. The magic of the valley is that there is no path, no formula, no stencil for how to be successful. There is no university one must attend, no incubator one must join, no technology one must master to be successful.

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The idea factory

Tom Tunguz

This morning, I listened to an interview of Jon Gertner who has published. a chronicle of Bell Labs called the Idea Factory. In his book and the interview, Gertner highlighted points about the Bell Labs that relate to Clay Christensen’s recent New York Times editorial, the Capitalist’s Dilemma. Bell Labs was a house of magic - a place of prodigious invention and innovation.

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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.