Please enter your username below and press the send button.A password reset link will be sent to you.
If you are unable to access the email address originally associated with your Delicious account, we recommend creating a new account.
This link recently saved by ramitsethi on July 20, 2015
This link recently saved by ramitsethi on August 31, 2013
EXCELLENT post-mortem on startup Flowtab, which was created to make ordering drinks at bars easier. From the comments on Hacker News (https://news.ycombinator.com/item?id=6307068): Not all startup failures are created equal, but when it comes to true flops like this one, one of the commonalities I've noticed is a general inability of the founders to step back and see the forest for the trees. From http://alpha.flowtab.com/: We also set a major company milestone to reach 50 "Flowtab regulars" (defined by 2 or more orders in a trailing 30 day period) by March 1st 2013. That's a really remarkable comment given that the venture was started in May 2011. With its $1 per order fee, this means that after nearly two years, the company's "major" goal was to acquire 50 customers who would deliver a baseline of $100 in revenue in a month. Sadly, one of the lessons listed on http://alpha.flowtab.com/ is "Do things that don't scale."
This link recently saved by ramitsethi on April 12, 2013
Building things that are different, inventing the future and creating a real business is a long and often very lonely slog. But you don’t hear about that. Instead what you get is a lot of babble about startups from so-called mentors, advisors and startup gurus. Peel away their sharkskin and you find they have never started a company, and they continue to live in the reflective glory of the company that once employed them. Others are the creation of social media, having struck a pose. And some are born consultants. They find willing listeners among a growing army of entrepreneurs who like enterprenuership as a lifestyle. Sorry guys, entrepreneurship isn’t a lifestyle, it is life. This spectacle of technology has attracted fake messiahs, and every day I see this mockery of entreprenuership. I overhear it in coffee shops. I am forced to confront it on social media. And I have to remind myself of Pandora founder Tim Westergren, who sacrificed it all to see his bet finally pay off after...
This link recently saved by ramitsethi on December 06, 2012
This link recently saved by ramitsethi on November 28, 2012
I don't know the answer for SaaS broadly defined, but I do know that for SaaS companies growing quickly (50%+ YoY) with a sales-driven model and salespeople, i.e. an average deal size of $300 or more per month ... there are almost none.
At EchoSign we participated in a survey from an investment bank of 100-ish SaaS companies and I believe we were one of the 1 or 2 or 3 (out of 100) with a sales team and >$10m in ARR that was cash flow positive, and we were the most capital efficient in our category.
Companies with no sales expense obvious can be much more capital efficient (see DropBox vs. Box as great case study).
Most sales-driven SaaS companies burn a lot of cash from $xm to $50m+ ARR. The VC capital is there and they use it to grow.
That's something IMHO worth thinking about in your SaaS model, a critical piece.
This link recently saved by ramitsethi on October 15, 2012