Tomasz Tunguz is partner at Redpoint. I write daily, data-driven blog posts about key questions facing startups. I co-authored the book, Winning with Data. Join more than 20,000 others receiving these blog posts by email.

Entrepreneurship growth: perception vs reality

The flurry of media activity in entrepreneurship including the spate of new TV shows like X-Factor for tech and Shark Tank, the refocus of the NYTimes and WSJ on technology, and the number of entrepreneurs on mainstream magazine covers gave me the impression that entrepreneurship is on the rise.

While this may be true in pockets like New York or California, entrepreneurship in the US is shrinking - at least according to the Bureau of Labor Statistics and a report from the NYTimes: When Job Creation Engines Stop ...

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Understanding payments

The payments ecosystem is complicated. But FastCompany constructed an illuminating diagram walking through a typical payments flow that I’ve copied here. Just look at all those steps!

Simplifying this complexity is the opportunity for many startups like Stripe, Dwolla and others.

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Founders, teach your employees statistics

Everyone is learning statistics because making sense of data is the difference between success and failure. R, the open source statistics language, is about a third as popular as Ruby and growing fast.

Statistics are essential because data is ubiquitous and volumes are growing exponentially, even in startups. CEOs measure key company metrics. Engineers measure application performance and build machine learning models. Marketers measure campaign performance and reach. PMs measure engagement. And so on.

A basic knowledge of statistics has become essential for most roles in business and ...

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My approach to building a hiring pipeline

Over the last few months, I’ve been helping a few companies build hiring pipelines to recruit at nearly every experience level and for technical, sales and business development roles. Below are the lessons I’ve learned.

Identify your ideal candidate
If you don’t know where you’re going, any road will take you there. Narrow your search focus to find the right candidate. The easiest way to start is by building look-alike candidate lists. I start with either a particular person or a list of companies that would provide someone with ...

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Sushi, passion, and entrepreneurship

Passion is not something you follow. It’s something that will follow you as you put in the hard work to become valuable to the world. Follow a Career Passion? Let It Follow You

In his book “So Good They Can’t Ignore You”, Cal Newport, a college classmate, champions the idea that passion lags work, instead of passion inspiring work. It’s the same philosophy embraced by sushi master Jiro, in the documentary “Jiro Dreams of Sushi.” Jiro should focusses on mastering a practice, making sushi.

Passion ...

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A six-step framework to make strategic decisions

Any number of challenges can arise during a startup’s initial years. Some of these changes could be major and may require rethinking strategy. Competitors enter your target market. New products are released into your market which undercut yours. Customer acquisition costs rise dramatically.

If faced with these questions, it’s hard to know where to begin or how to structure an analysis to reach an answer.

McKinsey uses a 6 step process to frame the process of answering these strategic questions which is profiled in this month’s Harvard ...

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Should founders join incubators?

Yesterday, I spoke at Columbia Business School. We had a conversation about the role of incubators and accelerators (or the moniker of your choice) within the startup ecosystem.

Given the volume of first time entrepreneurs and the broad growth of interest in entrepreneurship, I think these programs are invaluable. To entrepreneurs, these programs offer up to seven value propositions, listed in order of importance, as I see it.

  1. Education - Examples include General Assembly runs a substantial education program and YCombinator operates Startup School ...

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The startup love affair

Every investment requires a leap of faith, an emotional act that’s not pure reason, and that’s got to carry you through in the inevitable many months, sometimes years, of horrific bad stuff that comes with the company. And you’ve got to have that energy, that sustaining belief to carry you through, because if you don’t, then you regret having done it. So when I have regret, it’s when I didn’t have that, and I’d logically talked myself into [the investment] and checked the boxes. So it was really helpful ...

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The Heyday of SaaS - quick observations from Dreamforce

  1. We are in the heyday of SaaS. The conference spanned 20+ buildings, served 60,000+ attendees and was sponsored by more than 300 vendors. Free food everywhere. Skullcandy wireless headphone giveaways. DJs in every corner. Four square play areas on fake grass outside. It is one huge party.
  2. Benioff delivered a tremendous keynote. I wish I could speak in public with his confidence, control and passion.
  3. Dreamforce created the perception that Salesforce is at the center of a huge ecosystem of their own creation, which inspires confidence in ...

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A startup’s transition from product development to growth

At a recent meeting, David Barrett, one of the founders of Expensify, drew this diagram when explaining his company’s structure. He has overlaid the core teams of a company with a conversion funnel. It’s brilliantly simple.

Screen Shot 2012-09-20 at 7.08.30 AM.png

As every SaaS startup transitions from development to growth, the company must supplement the engineering and product capability with sales, marketing and account management. This diagram is the simplest way to show how they work together harmoniously at a strategic level.

Marketing builds a ...

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