Hi, I'm a partner at Redpoint. I invest in Series A and B SaaS companies. I write daily, data-driven blog posts about key questions facing startups. I co-authored the book, Winning with Data. Join more than 18,000 others receiving these blog posts by email.

What to Look for When Hiring a Head of Marketing for Your Startup

When a startup is confronted with the prospect of hiring a head of marketing, founders heads often spin. What should be the day-to-day tasks for this person? What skill sets are important? Because of the seeming abstract nature of marketing, founders sometimes delay finding a head of marketing until they feel acute pain, at which point they can clearly identify the attributes of the right candidate. But underinvestment in marketing, like underinvestment in infrastructure or software or product, isn’t a good idea

Read More...


The Impact of a Startup's Location on Its Ability to Raise Capital

Great entrepreneurs can come from anywhere. But do the locations of startups affect their ability to raise follow on capital? Do seed stage companies in the Bay Area face lower likelihoods of raising a Series A because of more competition? Or is it that New York based startups, because of a smaller ecosystem, face more difficulty?

Read More...


How to Combat Inaccurate Data and Faulty Statistics When Making Decisions

When presented with figures and numbers and statistics, it's easy to take the conclusions as fact. Numbers in a spreadsheet carry a finality, a exactitude that bely how inaccurate they can be.

"

Read More...


Why Startups Face Increasing Competition in Raising Series As and Bs

Has it become harder to raise money? is a question I hear all the time. On one hand, the total dollars invested by VCs is relatively flat at just under $30B per year, according to the NVCA. On the other hand, the stories of difficulty raising series As and Bs have become a steady drumbeat.

"

Read More...


How Your Startup's Sector Affects Your Ability to Raise a Series A

The average seed stage startup has a 20% chance of raising a Series A according to Crunchbase data for IT startups who raised seed and Series A rounds between 2006 and 2013. But this figure varies significantly sector by sector.

"

Read More...


Using Data to Pick the Optimal Name for Your Startup

Naming your startup can be one of the hardest things to do when starting a company. First, the name has to resonate with each founder. Then, the domain must be available to buy. Last and perhaps most importantly, investors need to like it because the first letter of startup's name has meaningful impact on how easily the company will be able to raise money. Whatever you do, don't pick a name that starts with the letter J. Or K. Or Q. Instead, favor names beginning with T, O and A.

Read More...


The Minimum Size Seed Round to Maximize Series A Follow On Investment

How large of a seed round should founders raise to maximize their chances of raising a Series A? Smaller seed rounds are simpler and faster to raise because they typically require fewer investors. They may also require less dilution because of the smaller investment size. On the other hand, to raise a Series A, the startup needs enough runway to hire a team and prove certain milestones to Series A investors.

"

Read More...


Do Larger Seed Rounds Lead to Bigger Series As?

In What's Up with the Series A, Nikhil Basu Trivedi documents the bifurcation in the Series A market. While there are a handful of startups that raise blockbuster Series As of greater than $10M, the average Series A investment size remains relatively constant over the past 6 years just around $5.3M for US technology companies according to Crunchbase data. After reading his post, I wondered if a big seed round is a leading indicator of a big series A. In other words, would larger seed rounds provide enough negotiating leverage in fundraising conversations to bolster average check sizes and increase pre-money valuations?

"

Read More...


The Optimal Average Customer Value for SaaS Startups

What should the optimal revenue per customer be for a SaaS company? One could assert million dollar contracts typical of enterprise sales provide more long-term stability and total revenue opportunity. Others may contend, larger customer bases paying smaller license fees enable more predictable growth. Which is the correct argument?

"

Read More...


Military Strategy Applied to Startups

OODA was a technique coined by John Boyd, one of the leading military thinkers of the last 100 years, based on the German’s Blitzkrieg-style warfare which prioritized speed and surprise over the traditional win, hold and grind attrition techniques of trench warfare. After @pmarca tweeted about the concept, I read one of the books on the topic called Certain to Win.

"

Read More...


Index