Dear SaaStr: If a Startup Raises $40 Million and Fails to Sell The Company, Do Founders Typically Exit With a Severance Package?
Dear SaaStr: If a Startup Raises $40 Million and Fails to Sell The Company, Do Founders Typically Exit With a Severance Package? Very rarely in a failed start-up, irrespective of the amount raised, will the founders end up with anything. If the start-up has raised a...
Dear SaaStr: What are The Pros and Cons of Raising VC Money from a Corporate VC?
Dear SaaStr: What are The Pros and Cons of Raising VC Money from a Corporate VC? The pros, and the cons, are both limited. The issues here are smaller than they used to be. Cons: Usually won’t carry the company or write many “second checks”. So not an ideal lead...
Dear SaaStr: What Are The Downsides of Being a Venture Capitalist?
Dear SaaStr: What Are The Downsides of Being a Venture Capitalist? Perhaps the biggest downside, for folks with some success under their belt … is your likely inability to truly be in control of things in a bigger firm. Most great founders are good at being CEO...
Dear SaaStr: When My Startup Raises $10m, Would It Be Appropriate to Take a $170k Salary (no co founders)?
Dear SaaStr: When My Startup Raises $10m, Would It Be Appropriate to Take a $170k Salary (no co founders)? Yes, not a problem. You should take a “market correct” salary as soon as it’s economically immaterial to the company. I don’t write $10m...
Dear SaaStr: Should You Always Ask a Co-founder to Invest Their Own Money?
Dear SaaStr: Should You Always Ask a Co-founder to Invest Their Own Money? No. Especially if they haven’t really made any money yet, and you have more. In both my start-ups, I was the only founder to contribute cash. It didn’t matter. Yes, you need money one...
Dear SaaStr: What Were The First Five Hires You Made After Product-Market Fit?
Dear SaaStr: What Were The First Five Hires You Made After Product-Market Fit? My first 5 hires at Adobe Sign / EchoSign, beyond the core founding+ team, once we had paying customers and first, if early, product-marketing fit: #1: Full-time sales rep at $8k-ish MRR....
Dear SaaStr: Is it a Red Flag if The CEO is Only Interested in Selling the Company?
Dear SaaStr: Is it a Red Flag if The CEO is Only Interested in Selling the Company? It is. Or at least — it’s a Yellow Flag. The company will never be great if the CEO is thinking this way. There are so many start-ups, so many products, so much competition. You can...
I Launched My SaaS And Have Zero Customers. What Do I Do?
Dear SaaStr: I Launched My SaaS And Have Zero Customers. What Do I Do? I’m from a software engineering background and I’m very comfortable in that space. I thought building my own SaaS would be super easy. I write code every day, it’s just another...
How, and When, You Can Get a VC from “Maybe” to “Yes”. Hint: A Few More Good Months is Often The Key.
Dear SaaStr: What three things would take a VC from ‘maybe’ to ‘yes’? 95%+ of “Maybes” from a VC typically in the end are just a No. Here’s Why: A typical VC meets 100-300 start-ups a year himself, plus all the others he has to meet that other...
Dear SaaStr: I Just Sent an Email to a VC with Two Typos. Should I Resend It?
Dear SaaStr: I Just Sent a Email to a VC with Two Typos. Should I Resend It? No, no, no and no. First, VCs want to see strength. Not arrogance usually, but strength. Some whimpy email apologizing for some typos isn’t strength. Second, it shows poor prioritization....
The Three P’s: How To Steal Customers From Your Biggest Competitor
Dear SaaStr: How Do I Take Over Customers From My Biggest Competitor? You can do it, it happens all the time. But you gotta put in the work. 95% of vendors and folks and sales reps don’t actually put in the world. You gotta do the 3 P’s: Patience. Persistence....
Dear SaaStr: When Should I Pay Commission on SaaS Sales that Close Themselves?
Dear SaaStr: When should I pay the commission for SaaS sales? All of our trial signups will get an automatic email from an account executive. How do we decide if the AE was responsible for the sale versus the sale just happened organically? Every company with a...
Dear SaaStr: How Do Enterprise SaaS Companies Deal With Late Payments?
Dear SaaStr: How Do Enterprise SaaS Companies Deal With Late Payments? Yes, in the end, you have to be willing to switch off the platform. But do it gracefully, with respect. Do it the same exact way you’d want to be treated if you were a customer. The key is...
Dear SaaStr: Growth Has Slowed and My VP of Sales is Pushing Me To Hire More Reps. Is That The Right Way to Go?
Dear SaaStr: Growth Has Slowed and My VP of Sales is Pushing Me To Hire More Reps. Is That The Right Way to Go? No. Not 9+ times out of 10. In fact, the #1 sign your VP of Sales is really struggling is when their best answer to slowing sales is to hire even more...
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