Fresh Insights

Analyses, Musings & Observations

The story of Clario’s exit

We recently had the chance to catch up with Chris Wood, one of the founders of Clario Medical Imaging, about his successful exit to Intelerad.  Clario Medical Imaging is workflow management software for radiologists.  Learnings from Chris’ story are below.   At first, Clario was unsuccessful.  Clario started in 2005.  The company had the license…
Read More

What to do with VC emails

If you’re a startup on angelist, crunchbase, or have had publicity, chances are good that VC are emailing you about raising money.  Here are some tips to maximize the benefit of these inquiries:   Emails from decision makers are good.  Knowing principals, managing directors, and original founders at venture funds is a good thing.   These…
Read More

The SaaS M&A Report for 2019

We recently got Software Equity Group’s SaaS M&A report for 2019. SEG is an investment bank focused SaaS companies and they put out fantastic data on what they’re seeing in the market. Key observations from their latest report are as follows: Deal volume was a record. SaaS M&A saw 1,248 deals, up 27% compared to…
Read More

Bad advice from VC

Below are some of the things investors say to early stage companies that is just wrong.   “Don’t take the first offer you get.” While true, this is a very misleading statement to make to a crowd of early stage founders.  It’s wrong to make early stage founders believe they will get all kinds of…
Read More

Relationship building with VC is over-rated

Building a relationship with VC and speaking to VC when you’re not fundraising isn’t a good use of your time.  Here is why:   You have better things to do.  We love founders that are so busy building the business, they’d prefer to stay heads down and grind as opposed to talking to us outside…
Read More

What a CEO should and shouldnt do

We’ve invested in 21 companies since our founding and we’ve seen some CEO’s use their time much better than others.  In our view, below are the tasks a CEO should prioritize.   Partnering.  One of your priorities should be to build partnerships with bigger companies.  The reasons: i) larger partners ultimately become strategic acquirers that…
Read More

1 in 3 founders will be replaced as CEO

When you finally exit or IPO, will you be the CEO or will someone else be running the company? It’s a great question so we dug into 129 tech IPO’s to figure it out. Specifically, we looked at the CEO at the time of IPO/exit and compared it to the list of key founders to…
Read More

Dev spend at tech companies

We looked at the R&D spend of tech companies at IPO and in years prior to answer the question ‘what is the right level of spend on R&D’. The data is below and varies by industry. SaaS spend is consistently a quarter of revenue. Leading up to the IPO, SaaS companies spent on median 24% of…
Read More

The demise of Blackberry

I recently read Losing the Signal by Jacquie Mcnish. If you were addicted to your Blackberry, it’s a must ready. It’s also a fantastic read if you want to learn how to avoid mismanaging your market position. Below are some of the passages we learned from.   Blackberry had no security equal. “No other phone…
Read More

Learnings from Snapchat

I recently read How to Turn Down a Billion Dollars, The Snapchat Story by Billy Gallagher. The book is fantastic and full of lessons. It’s well worth the read, but below are some of the passages we learned from.   Snapchat really started as a sexting app. “He wouldn’t have to worry about sending a…
Read More