The Damaging Psychology of Down Rounds
Yesterday I wrote a post about proprietary dealflow for VCs. In the article I discussed the downside of raising capital at a too high of a price and referred people to a previous article I had written encouraging founders to raise “At the Top end of Normal” as opposed to stratospheric prices. In the comments [...]
Why Early-Stage VCs Should Be Careful About Intros from Bankers
When I was new at Venture Capital I was trying to figure out the business. It was a fun period for me because everything was new and I was curious. What kind of deals should I be doing? What stage? What price? With which other investors? Should I focus on geographies or industries? Should I [...]
If You Sell Your Company, Use a Banker
When I sold my first company, I used a banker, an M&A advisor. When I sold my second, I did not. Not using a banker the second time was a mistake. The benefits are nonobvious, somewhat counterintuitive — and large. You don’t get THAT much from a banker for their seemingly huge fees: They don’t [...]
Xeround, and a tale of evolving business models
Cloud database company Xeround announced that they’re shutting down the version of their service hosted in public clouds such as Amazon, Rackspace, GreenQloud, and others. Users of the free service have until 8 May to move elsewhere, whilst paying customers have until 15 May. The company describes this as an attempt to “re-focus,” with the [...]
The SaaS Year of Hell. And Then – Reignition.
I was recently at an event with a SaaS-ish CEO who was, clearly, miserable. His business was doing $30m+ and growing nicely. He was about to introduce a new product that he thought could be game-changing. And, he had a strong team (according to him) that he truly enjoyed working with. What was so bad? [...]
Announcing The Future of Work Survey; Take it and Share it!
Today Chess Media Group is launching a new survey; The Future of Work: Collaboration and Flexible Work Solutions for Today and Tomorrow. The goal of the survey to is to uncover a few things around: the usage of social and collaborative tools within the enterprise the state of flexible work arrangements BYOD policies and approaches [...]
How to Raise Money When You’re Not in a Major VC Market
I travel the country a lot. And I am often approached by entrepreneurs in cities which don’t have a vibrant VC community. They often ask whether they have to move to SF, NY or LA to get financed. I have the same response always, “Where do you want to live? Where do you want to [...]
Investing in Enterprise Collaboration Can Help You Attract and Retain Top Talent
According to a Forbes article by Jeanne Meister: “The average worker today stays at each of his or her jobs for 4.4 years, according to the most recent available data from the Bureau of Labor Statistics, but the expected tenure of the workforce’s youngest employees is about half that. Ninety-one percent of Millennials (born between [...]
Two Amazing Women Setting Out on Their Startup Journey
Note: if you’re a parent please check out their website. Kara called me on a Tuesday. She was leaving IAC to start a company. “Tasha, clear some space on my calendar tomorrow. OK?” “I want you in my offices tomorrow, Kara. Does that work for you?” Kara came. She didn’t tell me she was bringing [...]
Why Hiring From Your Direct Competitors Usually Doesn’t Work Out
The time will come when you are first tempted to hire someone from your competitor. They must know so many things we don’t. Have so many skills. It’s pretty tempting. People will tell you about the risks in litigation, trade secrets, etc. I don’t think any of those are necessarily a big deal or a [...]
SaaS Business Model Competitive Advantage Revisited
What is SaaS? We seem to need to ask this question every couple of years, because the answer is a bit of a moving target. It was simple enough when SaaS was merely software applications pushed through a Web browser, but now we have to contend with the cloud, mobile and even social. Recently, Scott [...]
5 Non-Obvious Things To Know About VCs
I was catching up with a VC friend the other day and asked him about a company I’d referred to him. They’d passed on the investment (which is of course fine), despite the company meeting basically every investment criteria I knew about the firm. I asked the partner why. His answer was simply — timing [...]
My Favorite Entrepreneur Story in a Long Time
If you don’t like it hot, use less,” he said. “We don’t make mayonnaise here.” This morning I was reading my social media and came across an article that Christine Tsai had posted on Facebook. It was about the founder of Sriracha sauce, David Tran, displaced from Vietnam when the North’s communists took power. As the son [...]
Stop Trying to Catch Lightning in a Bottle
I’m sure you’ve all heard saying derived from Voltaire, “don’t let perfect be the enemy of the good” which in a way is encapsulated in the lean startup movement and the ideology of shipping a “minimum viable product” (MVP) and then learning from your customer base. Or to borrow a simple life lesson from Gretchen [...]
In SaaS, You Have to Love the One You’re With
Recurring revenue businesses are hard. You need so many different types of people (sales, support, client success, demand gen, product, engagement, dev). The customers complain, especially your most loyal ones. You have to get on planes. You have to grovel. It’s tough. And for a lot of us … well … it just turns out [...]
