I'm a partner at Redpoint and write daily, data-driven blog posts about key questions facing startups including how to fund raise, startup benchmarks, management best practices and team building. I co-authored book, Winning with Data. Join more than ten thousand others receiving these blog posts daily by email.


Trends In Startup Acquisition Market in 2015

This time last year, I analyzed the state of the startup acquisition market. Two key trends surfaced. First, the larger acquisitions were becoming larger. Second, that the total number of acquisitions in 2014 would achieve a 5 year high. As of mid-2015, the first trend continues while the second seems to have faltered.

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Three Data Points on Email List Unsubscribe Patterns

Ultimately, the goal of most content marketing campaigns is email address capture. When a reader decides to receive content consistently via email, a content marketer knows they're developing a deeper relationship with that person. Whether the marketers selling software or venture capital, retaining an email address is a victory.

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Startup Best Practices 14 - Slash and Burn Your Calendar

When startups achieve hyper-growth, many of the key internal processes begin to fail under the strain of a newer, larger organization. So they must be reinvented. One of the most important internal processes, but least considered, is scheduling meetings.

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The Beauty of Bottoms Up SaaS Businesses

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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The Impact of Interest Rates on Startup Fundraising

In the last 35 years, the federal funds rate has varied from as high as 16% in 1981 to as low as 0.09%. throughout those cycles, venture capital has flourished from a cottage industry into $100B per year asset class. VCs are on track to invest as much capital this year as during the height of the dot com era. But, is there any observable relationship between the federal funds rate and the startup ecosystem?

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Which Open Source License Should Your Project Use if You Want to Raise Venture Capital?

When deciding to open source software, one of the key questions teams must answer is the license under which they will distribute their software. There are a wide variety of different alternatives. But, the three most common are GPL, Apache and MIT. I was curious if there was any relationship between type of license used by startup commercializing open source software, and their ability to raise capital, and exit.

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The Early Winners in the Consumer Hardware Wave

There's a "new" $4B startup today. A consumer hardware company called FitBit started trading on the Nasdaq this morning and it's an impressive success story. We've examined the tremendous revenue growth GoPro experienced in a previous post. Impressively, FitBit is growing faster.

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The Disruptive Effect of Open Source Startups

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.

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Startup Best Practices 13 - Patience with Unit Economics

Financial discipline is a hallmark of great companies. It's what enables businesses to build exceptional go to market models, weather difficult times, and ultimately succeed. Sometimes, financial discipline in startups is imposed by financial markets, like in 2008 when the total amount of venture capital investment plummeted after Lehman imploded. Other times, financial discipline is imposed by founders and management teams. The tweet above is from Lew Cirne, founder and CEO of New Relic, a $1.5B market cap company serving developers, who deliberately raised small arounds at the outset of the company to impose financial discipline on his business. In other words, Lew valued patience with unit economics.

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Startup Best Practices 12 - Customer Success Compensation

Compensation structures are one of the most interesting questions facing customer success organizations in software startups. How should customer success leaders structure their team's compensation in order to align the objectives of individual customer success managers with those of the larger business?

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