June, 2015

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When Should You Allow Exclusivity in Deals?

Both Sides of the Table

I’ve heard many investors and some executives repeat the mantra, “Never offer exclusive deals,” and since this blanket statement is generally bad advice I thought I’d offer the less conventional but I believe more practical version of why exclusive deals can actually be a huge bonus for a startup and why I actively encourage them.

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TEL 246: The Four Steps to the Epiphany with Steve Blank

The Entrepreneurs Library

A summary of things you should know about The Four Steps to the Epiphany according to Steve Blank. Introduction (0:34). I am an eight time serial entrepreneur. I’ve done eight different start ups in a series of ever increasing roles and after I retired I became an educator and started teaching at Berkley in the business school, Stanford in the engineering school, and now at Columbia and NYU as well.

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Doing some good with the people who want your time

This is going to be BIG.

In the last two days, I've had three different conversations with people who were asking me what I do with the people who want to grab coffee when the mutual benefit isn't immediately mutual. Don't get me wrong--these are people who are all extremely generous with their time--and that's probably why more people reach out to them. You have a useful meeting with someone and then they tell someone else it was useful, and so on, and so on.

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The Disruptive Effect of Open Source Startups

Tomasz Tunguz

Open Source Software started the movement in the late 1990s. Since then, open source software has transformed the software industry. Today, many infrastructure software startups employ open source strategies to market their software and win dominant market share. Open source is a disruptive distribution strategy. It allows potential users and buyers of a software to try it, evaluate it, and understand exactly how it works because the source code is freely available.

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Digitalization: 5 Tech Updates That Will Help You Survive The Recession & Thrive

Lack of digitalization decreases business competitiveness. To thrive, embracing modern solutions becomes essential. The approach to digitalization often aligns with a company's business model. This shift not only boosts productivity but also automates processes and improves security. The tech market offers a wealth of technologies tailored for management, planning, and forecasting, replacing outdated pen-and-paper methods.

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Jay Samit: How Startup Founders Can Avoid Getting Disrupted

WSJ - The Accelerators

Whether by design or circumstance, every startup will eventually get disrupted. You have the next big idea and have been tenacious enough to get funded. Your insights and drive have given you a huge lead on competitors who are too slow to realize how much the market is changing and how obsolete their products have become. Your fledgling company hires more employees and becomes a global player.

More Trending

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How Do You Know if You Have the Right CEO to Run Your Business Until the End?

Both Sides of the Table

Many people don’t know that I actually became Chairman of my first company and relinquishing the CEO role before the company was sold. It’s a topic I’m well versed in personally and I understand the difficult emotional decision of whether to hand the reigns to someone else of the baby you’ve struggled so hard to launch into the world.

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TEL 253: How On Earth with DONNIE MACLURCAN

The Entrepreneurs Library

A summary of things you should know about How On Earth according to DONNIE MACLURCAN. Introduction (0:51). I’m an Australian who moved to the west coast of the US a couple of years ago. I have a background that expands over a few different fields. I worked as an exercise physiologist for about 8 years, as a sports coach for about 15 years, and then I went on to get a PhD looking at the impacts of nano technology.

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Do you know what you do and who else knows?

This is going to be BIG.

I was chatting with a friend about going to work for startup companies, and told her that career development really came down to two simple things: 1. Do you know what you do? Do you offer a clear deliverable , best suited for a particular segment of customers or clients, that aligns with their near term goals ? In other words, do you "do marketing" or do you "help seed and Series A backed companies test and optimize their marketing content, deploy it across multiple channels, and analyze the cu

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Benchmarking ServiceNow's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

Worth $11.5B, ServiceNow is the third public SaaS company, after Salesforce and LinkedIn. Based in San Diego, ServiceNow employs roughly 3000 people, and sells a system of record for IT operations teams to manage IT assets, facilities, and human resources. ServiceNow’s software allows clients to develop custom applications for their own needs, often with the help of the company’s professional services team.

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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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Carter Cast: Reflecting Before an Exit

WSJ - The Accelerators

Carter Cast. The strong pace of initial public offerings has many entrepreneurs contemplating if, when and how to look for an exit. The latest deals — including file sharing and cloud management service Box and online marketplace Etsy — may encourage exit-minded founders toward an IPO. Entrepreneurs have to consider a myriad of challenges that come with preparing for a liquidity event.

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Nail it; then scale it.

Berkonomics

So your business has begun to take off. You’ve figured out your channels of distribution, pricing model and how to support your growing list of customers. Don’t be alarmed by this next statement. That’s relatively easy. You can be the one to develop a product or service, promote it, and support it when you are a small operation. But what if you need to repeat the process of positioning, selling, and supporting your product ten thousand or more times as often as you do today?

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Do Less. More.

Both Sides of the Table

We are experiencing a frenetic time. I rarely talk to any startup entrepreneur or VC who doesn’t feel it and somehow long for simpler times despite the benefits we all enjoy from increased enthusiasm for our sector. For entrepreneurs there’s too much money sloshing around. One would think entrepreneurs would never want less available cash – until such time as their competitors ridiculously and unnecessarily all raise $50 million in the name of a “land grab” thus mak

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TEL 251: Rejection Proof with Jia Jiang

The Entrepreneurs Library

A summary of things you should know about Rejection Proof according to Jia Jiang. Introduction (00:37). I am an entrepreneur and what I do is deal with everything that comes with rejection. Help people overcome their fear of rejection, tell stories about rejection, and help businesses turn rejection into opportunities. The Book’s Unique Quality (03:27).

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PE Mastery: CAPTARGET's Playbook for Quality Lead Flow

CAPTARGET presents a masterclass in M&A deal sourcing. Learn to cast a wide net, embracing seller self-identification. Consistency is the linchpin: keep the origination process steady for a reliable flow of opportunities. Diversify your tactics, employing various tools and vendors. Tech matters! Understand DNS settings, domain authority, and brand presence for optimal outreach.

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A Month with No Funding Announcements

This is going to be BIG.

Every other day, some startup is raising some ludicrous amount of money at some outlandish valuation. It feels like the mother of all p **g contests and tech journalists seem all too willing to play along. Is it really going to make or break your career if you're the first to Uber's Series H round, the one between the $60 billion valuation and the $90 billion valuation.

VC 301
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Unpacking the Deep Diagnostic Value of LTV/CAC for SaaS Startups

Tomasz Tunguz

In a recent podcast , Ron Gill, the CFO of Netsuite - a $7B+ market cap company with about $600M in 2014 revenue, which provides ERP software to mid-market companies - articulated the importance of the Lifetime Value / Cost of Customer Acquisition (LTV/CAC) ratio for his company. LTV/CAC is often used to justify marketing and sales investment to acquire customers.

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Christina Bechhold: Is Nice Necessary?

WSJ - The Accelerators

CHRISTINA BECHHOLD: Speech and debate was one of my first and favorite club activities in high school, encompassing interscholastic debate, Model United Nations and Model Congress. Debate requires one to speak in declaratives, poke holes in your opponents reasoning and exude confidence possibly bordering on condescension. You are right and everyone else is wrong.

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The five kinds of risk in building your business

Berkonomics

If you could predict a crisis within your business before its occurrence, wouldn’t you move to prevent or reduce its impact? Making such predictions is a skill that can be developed, and here’s one method of doing so. There are five basic kinds of internal risks than a business faces over time. Of course, there are external risks that cannot be controlled or predicted, but can be planned for as well –. natural disasters, sudden political or economic events that rattle the entire economy, and mo

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How to Stay Competitive in the Evolving State of Martech

Marketing technology is essential for B2B marketers to stay competitive in a rapidly changing digital landscape — and with 53% of marketers experiencing legacy technology issues and limitations, they’re researching innovations to expand and refine their technology stacks. To help practitioners keep up with the rapidly evolving martech landscape, this special report will discuss: How practitioners are integrating technologies and systems to encourage information-sharing between departments and pr

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When the Good Guys in Venture Change Roles

Both Sides of the Table

This morning it was announced that Matt Murphy had left his role as a partner Kleiner Perkins to join as a partner in Menlo Ventures. As much of the coverage in the press this morning acknowledges it’s rare for a partner to leave from one firm to another. It’s even more rare for VCs to talk publicly about other VCs, so I thought it would be fun to break rank and tell you about Matt.

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TEL 248: Simple Rules with Kathleen Eisenhardt

The Entrepreneurs Library

A summary of things you should know about Simple Rules according to Kathleen Eisenhardt. Introduction (00:36). I’m on the faculty at Stanford in the School of Engineering and I’m also the Co-Director of Stanford’s Technology Ventures Program. I’ve been deeply embedded in the Silicon Valley entrepreneur scene but also in entrepreneurship US-wide and even global.

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Six Reasons Not to Invest in a Venture Capital Fund

This is going to be BIG.

I recently met up with an investor who I'm not totally sure is a fit for my second fund , so it was important to me that I was upfront about all the reasons why he shouldn't come in. The last thing you want as either a founder or even a VC is to have an investor get stuck with you when you're not on the same page about expectations. So here's all the reasons I told him he shouldn't be in: 1) Fund investing is boring.

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The Beauty of Bottoms Up SaaS Businesses

Tomasz Tunguz

One smart SaaS entrepreneur told me last week he prefers bottoms up businesses to top-down companies because bottoms up sales and marketing efforts enable startups to pursue hundreds of paths into a company. Unlike top down sales processes which offer a startup one shot at closing an account (a meeting with a CEO or VP), for bottoms up products, each employee is a credit-card-carrying-decision-maker.

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Statement of Cash Flows vs. Cash Flow Statement

Speaker: Wayne Spivak - President and Chief Financial Officer of SBA * Consulting LTD, Industry Writer, and Public Speaker

The old adages that "cash is king" and "you can’t spend profits" still hold true today. But however well-known these sayings might be, it requires a change in mindset to properly implement a cash flow management system that predicts your business's runaway as accurately as possible. Key to this new mindset is understanding the difference between the Statement of Cash Flows, a historical look at the source and uses of cash, and the Cash Flow Statement, which uses transaction history and forward-l

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Matt Maloney: Fueling the Next Generation of Innovation

WSJ - The Accelerators

MATT MALONEY: Companies cannot survive, let alone thrive, without innovation. That is clear to most — if not all — leaders. Something that may be less obvious: the absolute necessity of not only welcoming innovation in your business space, but encouraging — and even helping to fuel — that innovation. GrubHub was founded because I wanted to make it easier for people to find and order great takeout food.

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My story: Fail locally, one customer at a time.

Berkonomics

By Frank Peters. Our guest insight this week is from Frank Peters, well-known in the angel and in the bicycle worlds for his podcasts and passion. His personal story is full of lessons for us all. – Dave. We’ve all heard the modern day mantra: Fail Fast. It’s good advice; the theory being that entrepreneurs can discover the flaws in their business models sooner, make course corrections and move in a more favorable direction.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. The truth is that I’ve been warning about convertible notes since 2010 it was first declared that “convertible notes have won.” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note.

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Hiring Scorecard Example

For Entrepreneurs

The following is an example of a Hiring Scorecard, which was put together as an example for the blog post on recruiting. It shows the scorecard that was used to hire a Matrix Partners Associate. Mission Lead proactive research, investigation, and analysis of specific sectors identified by the partnership. Create a systematic approach to assessing.

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How to Avoid the Pain and Cost of PCI Compliance While Optimizing Payments

Speaker: P. Andrew Sjogren, Sr. Product Marketing Manager at Very Good Security, Matt Doka, Co-Founder and CTO of Fivestars, and Steve Andrews, President & CEO of the Western Bankers Association 

PCI compliance can feel challenging and sometimes the result feels like you are optimizing more for security and compliance than you are for business outcomes. The key is to take the right strategy to PCI compliance that gets you both. In this webinar, we have a great set of panelists who will take you through how Zero Data strategies can be used as part of a well-rounded compliance and security approach, and get you to market much sooner by also allowing for payment optimization.