Hometown investors, the local group of angels and VCs within a startup community, are an essential part of startup ecosystems. They can be great connectors, providers of advice and most importantly, suppliers of the venture capital to enable startups to grow. I was curious if hometown investment patterns differ across the 10 major cities in the US.
A terrific SaaS VP of Marketing once told me, "If the sales team is focused on hitting this quarter's revenue target, then the marketing team ought to be focused on next quarter and the following quarter." In SaaS companies, one of the marketing department's primary responsibilities is generating sufficient customer interest to enable the company to achieve their revenue targets.
Earlier this week, the Commerce Department announced US GDP in Q1 2014 fell by 3%, the most in a quarter since the recession. I've linked to the WSJ's chart depicting the trend above. The decline was 3x greater than forecasted. Silicon Valley seems unfazed.
Google revealed many novel projects and products at yesterday's Google IO Conference. At the moment, I'm most curious about the development of Android Wear, in part because of the beautiful Motorola 360 watch and in part because I suspect connected watches bring substantial change to the mobile device market.
Last week, the team at Wharton in San Francisco invited me to speak at the Entrepreneurs Workshop. I chose the topic of the "Five Forces Shaping the Fundraising Market" and prepared a Mary Meeker style presentation, with a chart and a bullet point on each slide, to illustrate the forces in tension.
There's a cyclicality to fundraising. Certain sectors rise quickly and become competitive while others decline. I've been wondering about the state of the market. First, which sectors are in vogue now in Seed investing and Series A investing? Second, is there a delay between the sectors attracting seed capital and Series A capital? In other words, do seed investors see trends before VCs do?
Jill LePore's New Yorker polemic "The Disruption Machine" attempts to debunk the incredibly popular Innovator's Dilemma, a theory written by HBS professor Clayton Christensen. I've been reading the debate around it with some interest. It's becoming a really interesting conversation but I think the debate is focused on the wrong thing - whether or not these ideas are absolutely correct, even axiomatic. They aren't always true. But that doesn't mean these concepts are useless. Quite the opposite.
Since it was first written in 1982, the Simple Mail Transfer Protocol, the mechanism for sending emails, has remained largely remained unchanged. Today SMTP delivers 70 trillion emails to 5B inboxes each year. Overwhelmed by tens of thousands of emails, most of us can sympathize with Nick Bilton, who said:There is no escape:Email is probably most invasive form of communication yet devised.
Several weeks ago, I wrote a post about the Optimal Contract Value for a SaaS company. I wondered whether startups serving enterprises might be more or less valuable than those serving small-to-medium businesses (SMBs). Interestingly, the data showed there was no optimal customer value to build a publicly traded SaaS company. Having written that post, I began to wonder about other differences between different types of SaaS companies. In particular, do SaaS startups serving SMBs spend more or less than their counterparts in the mid-market and enterprise? And which type of SaaS startup grows the fastest?