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 16,000 others receiving these blog posts by email. Subscribe.

The Typical Billion Dollar Startup Acquisition

When startups are acquired, there are many considerations in accepting an offer. Does the vision of the acquirer fit the startup? Will the startup operate independently or be integrated? What is the price and structure of the transaction? Most of these questions have to be answered through extensive conversations with suitors. As for the structure of the acquisition, there's data that can be used for benchmarking. I've assembled about 2400 M&A events of venture-backed technology companies since 2000 to compare the fraction of the total consideration which is stock and cash.

Read More...


What Bitcoin and Internet of Things Startups Have in Common

Bitcoin has captivated the imaginations of many with its quasi-anonymous, hyper cost-efficient payment network. The potential for Bitcoin to change foreign exchange is hard to overstate. In the same vein, the technologies that enable the internet of things (IoT) like Bluetooth Low Energy and Apple's Beacons and Electric Imp's infrastructure will transform the way we interact with the physical world to something akin to the mall in Minority Report.

Read More...


How to Hire a Head of Customer Success for Your Startup

I was lucky enough to spend some time with Monica Adractas, a former McKinsey partner who is now Churn Czar at Box. She and I chatted about the challenges in managing churn and her view on how to handle it. I thought she had some terrific insights and a clear understanding of the methods to reduce churn from her experiences. These are my notes from that conversation.

Read More...


How to Grow Huge: Proprietary Distribution Channels

Sam Altman argues in How to Grow Huge] that the only way for a startup to grow really large is to create products that people love and promote. As the user base grows, users attract ever larger numbers of users to the product, producing compounding growth. The point is a terrific one and I think it can be generalized. To grow really large, startups have to create proprietary distribution channels.

Read More...


Startup Management Best Practices #3 : How to Structure a Sales and Marketing Team

A key component in a startup's formula for success is educating customers about the product and driving sales. The sales and marketing teams of a startup are responsible for this. There are many ways to structure sales and marketing teams.

Read More...


The Tablet-First Retail Startup

For retailers of any size from startup to Fortune 50, the tablet application has become more important than the mobile application. IBM's annual Black Friday ecommerce report, which tracks 800 internet retailers proves the point.

Read More...


The Most Effective Way of Visualizing Funnels

I first learned about Sankey diagrams in my thermodynamics class and they've since become one of my favorite data visualizations and analysis tools. Sankey diagrams, like the one above of visitors to this blog, show the flow of things. Originally created for measuring the flow of energy through powerplants, they are incredibly useful for content marketing analysis, visitor analysis or any other kind of funnel analysis.

Read More...


The Next Big Opportunity in Mobile Advertising

The typical mobile phone's home screen is occupied by more than 30 applications. A digital tragedy of the commons, each additional mobile application a user downloads decreases the odds of an average application re-engaging a user. After all, the time spent on mobile isn't increasing fast enough to cover the marginal application.

Read More...


Startup Best Practices 2 - Startup Team Sizes

At its core, a startup's advantage in the market is the speed created by focus. When a team is well orchestrated, they can accomplish amazing things. Creating an environment that fosters communication best is therefore an essential part of startup management. But how best to do it? Founders have to balance span-of-control with span-of-managerial-responsibility. In an article this week's New Yorker, Amazon's founder/CEO Jeff Bezos is quoted on the subject with a contrarian point of view:

Read More...


The Language of the Web

When I first started programming at a startup, I was proud even snobbish about the language we used:Java. I derided JavaScript. I couldn't have been more wrong. JavaScript has become the dominant language of the web. Every browser, PC and mobile, understands Javascript. It is a lingua franca among computers. Some hardware even speaks Javascript.

Read More...


Index