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One Simple Rule On How Much To Pay Yourself Once You Raise Venture Capital

SaaStr

Q: How do Venture Capital Firms really feel about founder salaries? Let me add just one thought to the discussion on founder salaries, once you are venture-backed. If the founders are the highest compensated people in the start-up, at least pre-Scale (e.g., 10k a year. 10k a month. Incentives are not aligned here.

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Do I Need To Raise Venture Capital At All? No. But It Takes Longer If You Don’t.

SaaStr

Q: Is venture capital really necessary to do a start-up? Atlassian never raised any primary capital and waited many years until raising money at all for secondary liquidity. Atlassian took years longer to get to scale. But most leading SaaS companies raised money, at least as soon as things took off.

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Lessons on Scaling Customer Success from $1M to $300M in ARR with Success Venture Partners

SaaStr

If you’ve raised venture capital, you know net revenue retention is important. PST — Former VP of Customer Success and current founder and Managing Partner at Success Venture Partners, John Gleeson, shares his lessons learned scaling customer success from $1M to $300M in ARR. Customer success is all about outcomes.

Scale 173
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The Broken State of SaaS Sales Rep Comp

SaaStr

Back in the day, premium comp for some software sales execs made simple and easy sense. Traditional software had 90% gross margins, and the classic enterprise sales reps, the best ones, could close a million or more dollars a year. Either higher quotas, lower attainment, or for a while, even more venture capital.

Scale 312
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Unveiling the Data Behind Effective Scaling with ICONIQ Growth Partner Doug Pepper and Partner & Head of Analytics Christine Edmonds (Pod 637 + Video)

SaaStr

The venture capital firm’s mission is to be “entrepreneurs backing entrepreneurs.” They initially double their ARR each year in scaling post $10M. The revenue per FTE surpasses the spending around the $100M mark in ARR, and the trend continues to IPO where revenue growth doesn’t lead to an inflation of per-employee spend.

Scale 202
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A Lot of You Are Doing a “Strategic Retreat” in Sales & Marketing. That’s Flawed.

SaaStr

Later stage venture capital has evaporated, and budgets are at least under more scrutiny. Well at a practical level, many SaaS companies are doing a Strategic Sales & Marketing Retreat. What’s a Strategic Sales & Marketing Retreat? Second, you slow or stop sales hiring. Not for all of us, but most.

Scale 277
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Dear SaaStr: How Can You Grow a SaaS Startup Without Spending a Ton on Sales and Marketing?

SaaStr

Dear SaaStr: How Can You Grow a SaaS Startup Without Spending a Ton on Sales and Marketing? A few examples: Mailchimp was bootstrapped to $1,000,000,000 in ARR Qualtrics was bootstrapped to a $6B acquisition Atlassian was bootstrapped all the way to … today $30B+ Veeva is very enterprise but only spent ~$3m in true venture capital.

Scale 217