About a year ago, Dropbox announced that it had reached $1 billion in annual revenue, claiming to be the fastest SaaS company to do so. As Dropbox executives bathed themselves in cash, SaaS investors drooled at the thought of funding the next big SaaS startup. SaaS is great, but it’s not your only option That’s…
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There was a time, not that long ago when we watched in awe as software took over the world. Today it’s not a matter of if an industry has shifted to digital, it’s a question of who embraced the transition in time to avoid being left behind.As software ate the world, eventually the market needed…
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Last month, we covered the 4 steps to generating future cash from customers. We touched on keeping your customers and making them rabid fans. Now, we’ll go into 3 Steps to Delighting Your Customers. Step 1: Put Yourself in Their Shoes How annoying is it when you feel like a customer does not value your…
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It’s easy to say you’re running a SaaS business, but are you really? It’s fine if you’re not pure SaaS, but thinking you are and passing yourself off as such can put you in jeopardy. Here are a few simple financial indicators that you may be stretching the truth on how SaaSy you really are.…
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Fact: No one person or company is great at everything.Sure, we’re all generalists to a degree. But we’re not experts across disciplines.So, as early-stage founders, it’s important to cultivate the skill of efficiently outsourcing projects that you and your team cannot knock down with speed, quality, and repetition. You need to learn how and what…
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Delusions abound when it comes to raising equity capital, aka selling a piece of your company for cash. I was talking with a (non-delusional) founder the other day. He’s building a capital-efficient, verticalized SaaS business targeting to do about $1.5m ARR this year, up ~4x from last year. He has two angels and one accelerator…
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There are a lot of resources out there for financing news. Here are our top 5 go tos: Crunchbase (surface-level funding round data) Frequency: We search CB pretty much every day for a quick and dirty look at companies’ capital profiles. What you get for free: You can see all Form D raises with the…
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The finance world lives on the mantra of “cash is king”. Why, you ask? Well, it’s because it’s a company’s cold, hard cash, not its reported profit, that determines the value of a business. Profit is merely an accounting mechanism. Future cash flows actually pay the bills. And the investors. And, most importantly, the investors’ investors.But,…
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