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.

The 10 Most Important Metrics in a Startup's Financial Statements

Financial statements are a Rosetta Stone for startups. They reveal the strategies and the tactics of how to bring a product to market. These are the ten metrics I look at when sifting through a startup's operational model, whether when considering an investment or in a board meeting.

Read More...


A 47 Year Old Prediction Comes True

On January 8, 1966, the New Yorker profiled Buckminster Fuller for the first time. During a trip to a Maine island with the journalist Calvin Tomkins, Fuller said something tremendously prescient:

Read More...


Using Price & Demand Curves to Inform Startup Product Roadmaps

The initial phases of a startup revolves around discovering product market fit (PMF). One way of declaring PMF is to have enough data to sketch a reasonably accurate price/demand curve for a product. Tactically, these means identifying customer segments, estimating the the demand of each segment, quantifying the investment required to build the right product, and uncovering the costs of acquiring and servicing customers within that segment.

"

Read More...


How Much Does It Cost to Take Your Startup Public?

Raising money for a startup is expensive. The typical legal fees for a Series A are about 1% of the total money raised: roughly $40k on $4M. Of course, this doesn't factor in the time for the process and the dilution of the investment. But if your startup is considering an IPO be prepared to pay eight times as much in fees. Across 360 venture backed technology IPOs in the last 10+ years, 8.8% of the dollars the startup raises in the initial public offering is paid to investment banks, accountants and attorneys.

Read More...


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...


Index