First there were RSS feeds (Google Reader
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.
I met a seasoned executive recently. He made a bold claim. “Management is an art, and one that is overwhelmingly undervalued in Silicon Valley.” I wondered, are we investing enough in our managers?
Talent is the largest investment of an early stage company. 80%+ of startup operating expense flows to compensation. Retaining these employees is good business. Especially in such an expensive and competitive talent market.
Research shows employees leave their jobs because of poor leadership and poor management. All managers in a company influence employee retention - from the C-level to the line manager. This is why investing in each creates a competitive advantage.
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:
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.
SMB SaaS companies sell to a radically different market than enterprise software companies. See the table below. The average traditional enterprise software company sells to firms with 3300 employees whose average payroll is $160M annually. In the US, there are only 17,500 of these firms. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll. There are about 5.8M of these firms in the US.
One of the main challenges I have faced working in venture capital is to find a consistent structured way of analyzing companies. The main goals in this analysis are comprehensiveness of the analysis, ease of replication across sectors and like startups, developing a minimally viable analysis for a first pass that can also serve as the foundation of a deeper analysis as an opportunity warrants.
Over the past 18 months, I’ve read tens of business books on strategy, business models, and analytical frameworks. And over the weekend, I read one particularly insightful book that put a capstone on my preferred collection of analyses: Business Model Generation. The book is crowdsourced from a collection of over 1,000 authors and provides a flexible framework for brainstorming, analyzing and comparing business models. It’s an invaluable resource to any entrepreneur and VC.