What happens when an angel investor’s convertible note in a tech startup is converted into equity?
Q: What happens when an angel investor’s convertible note in a tech startup is converted in to equity? Is this positive for the angel? Ok, in theory, it’s great. You now own the stock you bought the convertible debt to convert into. In practice, though,...
How can you identify weaknesses of Venture Capital organizations? Where do they come from?
Q: How can you identify weaknesses of Venture Capital organizations? Where do they come from? Is an interesting question — what makes a “weak” VC firm, from a founder’s perspective? Or a “weak” partner at a firm? What does a...
Is venture capital a money-losing venture in aggregate? Why?
Q: Is venture capital a money-losing venture in aggregate? Why? Probably. It’s not 100% clear if it’s money losing in the aggregate from a $$$ invested perspective … but the average fund loses money. That’s clear. The average venture fund...
How did Quirky manage to convince so many top tier investors through multiple rounds of financing while they were bleeding so much cash?
Q: How did Quirky manage to convince so many top tier investors through multiple rounds of financing while they were bleeding so much cash? The more successful and the bigger the investor, the bigger you roll the dice. Once you have a bunch of unicorns and a few...
How many licences will Apptus need to sell to cover their Dreamforce15 marketing spend?
Q: How many licences will Apptus need to sell to cover their Dreamforce15 marketing spend? You’re, sort of, misunderstanding the point. As we all sort of do until the years go by, we get a lot bigger, and then we see it. Probably 70% of the point of their...
Laugh, Vote, Change Lives
These international startups need your help in making their SaaS dreams come true. Companies from all over the world (seriously, five continents!) have submitted their videos for our “Show Us Your SaaS” international startup competition in the hopes of...
What is the average OTE for a SaaS salesperson in Silicon Valley?
Q: What is the average OTE for a SaaS salesperson in Silicon Valley? Rough-and-tough OTEs (or “On Target Earnings” — not salaries, but what reps expect / hope to earn as a combination of base salary + commission). Field: $200k, if true elephant...
How many LPs does a VC typically have?
Q: How many LPs does a VC typically have? Maybe 20, as a rough average. The reason I’m saying that is conventional thinking is it’s best to not have any individual LP with > 10% of the fund. Many LPs do “turn over” even if the funds perform...
How do you best determine SaaS pricing for various market verticals?
Q: How do you best determine SaaS pricing for various market verticals? Ultimately, if you are selling into the enterprise … you need to look at comps. 2 types of comps. First, are direct comps. How much are your competitors selling for? Are you more...
Why is Google not buying Twitter?
Q: Why is Google not buying Twitter? It’s too expensive. It’s difficult to imagine they wouldn’t at the right price, and if it were for sale at that price. View original question on quora
What is a liquidation preference?
Q: What is a liquidation preference? Something minor, that nothing much matters. Sorry, but let me step back. So much bad web-thinking here. Promising investors that take a huge risk on you, that if you are acquired, they’ll make 1x their investment … or...
Is there a secondary market for VC funds where I can buy LP’s stakes in existing VC funds?
Q: Is there a secondary market for VC funds where I can buy LP’s stakes in existing VC funds? It’s tough. There are many funds and firms that actively play in the secondary market, and it’s a weird market. After the 1.0 implosion, in Storm II, a very...
SaaStr At Dreamforce — Secret Word, Free SaaStr Annual Passes + 2 Sessions + Bowling
There’s a lot going on this week if you are at Dreamforce ’15. Where I / we’ll be: Tuesday 4pm: With Lighter Capital and Aaron Ross – a live AMA! The Intersection of Funding, Sales and Business Growth Running a SaaS business? Thinking about how...
Why is it so hard for Dave McClure to raise money for 500 Startups?
Q: Why is it so hard for Dave McClure to raise money for 500 Startups? Dave has an epic brand and has backed multiple unicorns and “hard” is a relative term — raising any fund at all is really hard no matter how it looks on the outside. [ While Storm...
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