Fresh Insights

Analyses, Musings & Observations

Tech’s recession resilience

That’s an aggressive title for a blog, but the data shows it may be true. We looked at the quarterly revenue growth of 47 tech companies before and after the 2008 recession and remarkably, the sector performed well. Below is the data. Software. Only 4 companies showed real YOY drops during the recession. Calidus Cloud…
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The right way to price SaaS

Price Intelligently put out phenomenal content on how to price your SaaS product. A link to the full report is at the end of this blog and it’s well worth the read. Below are our biggest takeaways. Don’t use competitors’ pricing as your basis. “the biggest downside of competitor based pricing should be obvious. You…
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Founder paydays at IPO

When a startup founder shepherds his company to a successful exit (IPO), what are the paydays like? We dove into major tech IPO’s since 2018 to find out. Note that paydays aren’t necessarily what the founders took home at the IPO (shares are usually subject to a 6 month lockup), rather they’re what the founder…
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Learnings from a SaaS IPO – Hashicorp

Hashicorp is a software company went public in 2021. Below are some of the highlights and learnings from their prospectus. What they do. “Our cloud operating model provides consistent workflows and a standardized approach to automating the critical processes involved in delivering applications in the cloud: infrastructure provisioning, security, networking, and application deployment.” Always remote…
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SaaS M&A multiples in Q2

Software Equity Group is an investment bank that puts out excellent research on SaaS markets. They’re also a great group of bankers. They just released their latest report on Q2. A summary is below but the full report may be found at https://softwareequity.com/research/. SaaS M&A is still healthy, for now. “Overall, the volume of SaaS…
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Learnings from Twitter’s Story

Recently I read Nick Bolton’s book “Hatching Twitter.” It is the story of Twitter and it is fantastic. Below I paraphrased some of my favorite sections, but if there is any book about startups to read, this is it. One of the founders had started Blogger. “Ev explained that Google had approached Ev to buy…
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Learnings from a SaaS IPO – UserTesting

UserTesting is a software company that went public in 2021. Below are some of the highlights and learnings from their prospectus. What they do. “We have pioneered a video-first, enterprise-grade software-as-a-service (SaaS) platform that enables organizations to see and hear the experiences of real people as they engage with products, designs, apps, processes, concepts, or…
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Bad advice from good investors

Below are some of the things investors say to early stage companies that are 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…
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The real duties of a CEO

We’ve invested in 27 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 pay…
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32% of Founders wont be CEO at Exit

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 191 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…
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