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Most interviews are a waste of time. According to Adam Grant, a professor of Organizational Behavior at Wharton, “standard interviews only accounted for 8% of the differences in performance and productivity.” The typical interview fails to predict performance accurately because it is subject to interviewer biases and candidate biases, and fails to compare the candidates with a consistent rubric.

In a talent market as competitive as today’s, startups who can more accurately assess candidates’ future performance will create a tremendous recruiting efficiency and ultimately execution advantage. Though no interview system will predict future performance flawlessly, structured interviews, work tests, and intelligence tests are three times more predictive than unstructured interviews.

Seed investments are booming. According to Crunchbase data, the number of seed rounds in US companies has grown by 10x in 6 years from 200 per year to more than 2,200 in 2013. This is driven by the expansion of the institutional seed investor and the tripling of seed stage capital available to founders.

Most startups play defense when discussing pricing with customers. They dance between asking for too little, leaving money on the table, and asking for too much, only to lose the customer’s interest. The very best companies lead their customers in that dance. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message.

For many founding teams, pricing is one of the most difficult and complex decisions for the business. Startups operate in newer markets where pricing standards haven’t been set. In addition, these new markets evolve very quickly, and consequently, so must pricing. But throughout this turmoil, startups must adopt a process to craft a good pricing strategy, and re-evaluate prices periodically, but at least once per year.

The median equity stake of US venture-backed post-Series A CEO has increased from 15% to 21%, a 40% increase in five years. This trend is also manifested in Series Bs, but as the chart above shows, post-Series C and D, total founder/CEO equity positions have remained constant.

Meanwhile the equity stakes of founding VP of Engineering and VP of Product have remained relatively constant throughout the same five year period across all stages of company.

What a difference a few quarters make! In the past nine months, Series A valuations have skyrocketed. In fact, 2014 Series A pre-money valuations have surpassed median Series B valuations from 10 years ago, accounting for inflation. The same is true for Series B valuations exceeding Series C valuations. Cooley, a top tier startup law firm, reported this trend in their valuation quarterly report, which tracks these figures where they are counsel to either investors or founders.

It’s Q3 earnings season and about half of the major public tech companies and recent startup IPOs have reported their figures. I keep track of earnings to get a sense for how these companies perceive their markets. Meeting or exceeding earnings indicates companies can forecast their growth and demonstrates how predictable these businesses are. The more predictable, the more stable the business environment and consequently, the fund raising environment for startups.

The real promise of the Internet of Things isn’t simply linking millions of devices together, just like the real innovation of the web wasn’t networking a bunch of computers. Instead, the true and still unrealized potential of IoT is to transform business models; it’s enabling companies to sell products in entirely new and better ways that benefit both the company and the customer.

Around the turn of the millennium, startups began using the web browser to deliver their products to consumers and companies. Soon afterwards, instead of paying a one-time fixed price to use the software, customers subscribed to access the software. You can’t buy Quicken or Quickbooks on a CD for one fixed payment anymore. Now it’s a subscription.

At some point, most startups will begin to measure their customers’ happiness. Customer satisfaction is an important predictor of loyalty and can foster fantastically efficient word-of-mouth growth. Many companies employ Net Promoter Score to quantify customer satisfaction. NPS measures the fraction of a customer base which are promoters and detractors of a company’s product. I’ve been told that NPS scores greater than 50 are impressive, but this is simply a rule of thumb. So what’s the right way to evaluate a company’s NPS report?

When we analyzed the impact of location on a startup’s ability to raise capital, we found no statistically significant difference. Startups in San Francisco, Seattle, Pittsburgh, Austin and many other cities all demonstrated similar ability to raise follow-on rounds. But is the same true for investors of various locations? Do investors across the US invest similarly across Seed, Series A and Series B?

They do not. In fact, there is a statistically significant difference in investment patterns of investors depending on their location. The table below contrasts the mean round sizes across Seed, Series A and Series B, by investor headquarters location across firms in California, Massachusetts and New York¹.

I met a really smart vice president of sales a few weeks ago working in a company with mid-market customer values in the $10-100k per year range. When I asked her about her sales process, she described how her team employs statements of work (SOW), which isn’t something I hear about very frequently in startups, despite the fact they are very powerful sales tools.

Statements of work describe the proposed working relationship between a vendor and customer. These are common in government contracts and in the advertising agency world where they are called creative briefs, among other places. But I don’t run across them very often in SaaS.