Fresh Insights

Analyses, Musings & Observations

Advice from a SaaS investment banker

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Recently an investment banker named Tom Metz was kind of enough to share his book with me entitled “Perfect Your Exit Strategy”. It’s about going through an exit with an investment banker. Below are direct quotes I…
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Acceptable level of SaaS cash burn

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. Most SaaS companies burn cash as they grow, but what is the acceptable level of burn? We looked at the last 41 SaaS IPOs to find out. The data is below…
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The most successful VC in SaaS

Who are the most successful VC in SaaS? To answer that question, we looked at the past 41 SaaS IPOs and who their major investors were. The list is below.   The best. Not surprisingly, Sequoia and Accel top the list with 6 each. August, NEA, and TPG have 3 each. Lots of 2’s. Ten…
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SaaS founders owned 14% at IPO

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. The founders of Jfrog owned 24% of the business at IPO. Viant’s founders owned 93% and Datto’s founder owned 15%. The range of founder ownership at exit/IPO can be quite wide…
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Startup Learnings from legendary founders

Sammy is the Managing Director and Cofounder of Blossom Street Ventures.  Email him directly at sammy@blossomstreetventures.com, especially founders.   The book ‘Founders at Work’ interviews well known tech founders about their earliest days.  It’s well worth the full read, but below I summarized portions that really stood out to me.   Introduction   “Perseverance is…
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Strategic investors don’t matter

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com, especially founders. Entrepreneurs are always looking for “Strategic Investors” — corporate VC such as Intel, Verizon, SAP, Microsoft, Salesforce, Cisco, InQTel, etc. The view is that these investors provide not only capital, but also guidance on the product roadmap, engineering/dev resources,…
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Average SaaS CEO salaries

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.com, especially founders at all stages. We’ve seen a wide range of CEO salaries in our portfolio, from as low as $35k annually to as much as $400k (plus bonus). While there is no dataset explicitly outlining…
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Startup learnings from great founders

The book ‘Founders at Work’ interviews well known tech founders about their earliest days. It’s well worth the full read, but below I summarized portions that really stood out to me.   Introduction “Perseverance is important because, in a startup, nothing goes according to plan. Founders live day to day with a sense of uncertainty,…
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Stop giving shares to advisors

Sammy is the Managing Director and Cofounder of Blossom Street Ventures.  Email him directly at sammy@blossomstreetventures.com, especially founders.   A startup founder recently asked “so what’s the right amount of equity to give to advisors and board members?” The answer is none.   Here’s why.   No one cares who your advisors are. We’re a Series…
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Learnings from UiPath’s S1

Sammy is the Founding Managing Partner at Blossom Street Ventures. Founders should email him at sammy@blossomstreetventures.com UiPath went public last week at a fantastic valuation, so we read through the S1. The business has some unique attributes and plenty of learnings; we summarize the S1 below. The road was long. The company started with 10…
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