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.

Segmenting the SaaS Market for Sales

Developing a sales strategy is critical for software-as-a-service (SaaS) startups. The first step in developing a sales strategy is to build a robust market segmentation. I’ve used data from the US Census to develop a segmentation that reveals some surprising facts about the SMB market and may help inform your startup’s sales strategy.

Chart 1: 98% of businesses in the US employ fewer than 100 people.

98% of businesses in the US employ between 1 to 4 people. This large segment of businesses provides ample testing ground for ...

Read More...


All great managers are alike

Hollywood and Silicon Valley often seems worlds apart. While movie making and startup building may always be very different endeavors, great managers use the same techniques in every discipline to empower their teams, hire the right people, and change the world.

Over the weekend, I watched Woody Allen: A Documentary which profiles the great director through the words of his actors, editors and producers. Allen’s management ability shone through every interview.

Work in every role within your team. Woody has performed every major key ...

Read More...


The Path to Exponential Growth

For years, a product can grow linearly before suddenly seeing compounding growth. Facebook is a great example. From 2004 to 2007, the company grew at a fairly linear rate. And then, the magic happened! The network effects kicked in and exponential growth ensued.

'"Facebook

Linear growth always precedes exponential growth. For market places, in social networks or in advertising exchanges, the story is always the same. Linear, linear, linear. BOOM, exponential. One day, the magic happens. '"How

Read More...


Loyalty with a tinge of betrayal

Did you hear ‘em talkin’ ‘bout it on the radio

Did you try to read the writing on the wall

Did that voice inside you say I’ve heard it all before

It’s like Deja Vu all over again

- John Fogerty

I am emotionally attached to Android’s success. It’s the same loyalty I displayed when I campaigned for Apple in the mid-90s. But with a tinge of betrayal.

I reminisce about spending hours sifting through Zapf dingbats to transform PC Word files into usable Mac documents; choosing from a ...

Read More...


Facebook’s new feature: your top 7 friends

Facebook is asking me to redefine my closest 7 friends.

I logged into Facebook today to see this new feature, starring your friends. Below this text is a Google circles like UI that asks me to star friends whose updates are particularly important to me.

'"facebooktop7"'

With hundreds of friends, the average Facebook user logs in to see wall of updates that aren’t quite relevant. Some of us have reduced our friend graphs and unfriended contacts in order to return the feed to relevance, which isn’t ...

Read More...


Why did Apple’s unwillingness to compromise finally succeed?

Apple has built the most successful tech ecosystem of the past ten years. And they have done it, surprisingly, by dictating the rules of that ecosystem.

Compare iOS and Android. To win, both needed to develop initially 2 but eventually 3 things:

  1. A mobile OS
  2. Mobile hardware to run the OS
  3. And later, the content ecosystem

Apple controls nearly every aspect of this stack, from the prices of books and movies, to the place where apps are downloaded, to the payment mechanisms, down to the advertising and ...

Read More...


Stories, not sentences

Although today’s society is said to be in a state of information overload, in fact it may not be in excess. It’s just an overflow of odd and fragmented information in the media. The amount of information in each fragment is in fact quite small. In this slew of half baked information, isn’t the brain oppressed? The stress on the brain isn’t because of quantity, but because of limited quality.

Kenya Hara, Designing Design

Design is philosophy for the modern age. I can think of ...

Read More...


Defining a Personal API

The UK is just starting to enforce EU’s cookie consent law. Visit the FT for the first time in a while and you’ll see:

In effect, this law requires consumers to define a Personal API. Consumers carry a trove of data: browsing data, ad click data, friend network data and social sharing data. Web businesses have realized the value of that data ($12B in 2011). This EU law encourages consumers to become aware of the value of this data and ...

Read More...


Successful SMB SaaS Companies Have a 2 Step Value Proposition

On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. But they are quite a different breed. It’s not just the sales process that differs from traditional software. The entire business has be built differently. So must the product. And typically these products have a 2 step value proposition.

Read More...


%!s()

Read More...


Index