Option Pools: Understanding the Ins and Outs for Your Negotiation

During your VC negotiations, option pools can often be an afterthought. Discover why you shouldn’t treat them as such.

 

So you’ve attracted the interest of a few VCs and you’re startup is about to be flooded with a little (or perhaps a lot) of extra cash. Between the prep work and the negotiations, things can quickly become overwhelming. But you’ve got to pay attention to all the details, which is why Rob Go explains the intricacies of option pools and how to handle them in this post on his blog.

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The ABCs of Startup Valuation

Every entrepreneur who launches a company needs to understand the ins and outs of startup valuation.

The ABCs of Startup Valuation | OpenView Labs

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More often than not business is a numbers game. When it comes to startup valuation, regardless of stage, that’s truer than ever. So why do so many early stage startups consider it a guessing game when they don’t have to? Ann Vital explains the metrics you can use and the importance (or lack thereof) of a high valuation in this post at Funders and Founders.

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3 Steps to Creating a Smart SaaS Pricing Structure

Is your SaaS business facing a pricing crisis and you don’t even know it? Software pricing expert Jim Geisman shares three tips for developing a tiered pricing structure that clearly communicates the value of your various product options or editions.

How to Develop a Tiered Pricing Structure

Building a business around a single product is like standing on one leg: You can do it for a while, but in the long run you will fall down.

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How to Screw Up Your Software Pricing and Packaging Completely

Software pricing strategist Jim Geisman shares three reasons why software companies often miss the mark when it comes to the delicate relationship between packaging, price, and cost.

3 Major Software Pricing and Packaging Mistakes

For more than 20 years, I’ve seen many emerging and established software companies tackle the issue of product pricing and packaging in a very similar way.

First, they start with a set of financial goals. Next, they determine what exactly they plan to develop. After that, they determine what they think will be the right price point. And, finally, they make a wild guess of what level of sales volume they can drive in based on the market size.

A few keystrokes later, poof, they’ve produced a very broad (and probably inaccurate) revenue forecast that is often shown to board members or investors. Unfortunately, there are three reasons why this is not a very smart approach.

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David Skok on the Keys to a Balanced, Profitable SaaS Sales Model

Does your software as a service company have a truly viable go-to-market sales model? Discover two important metrics that can help you determine your profitability.

David Skok on the Keys to a Balanced, Profitable SaaS Sales Model

One of the biggest mistakes entrepreneur and VC veteran David Skok sees software as a service (SaaS) startups make is trying to “buy their way into a repeatable, scalable model.” Sure, investing in hiring more sales reps will naturally result in more customer acquisitions. However, more sales reps is not synonymous with profitability.

In this week’s Labcast, Skok, author of the popular For Entrepreneurs blog, explains why you need to make sure you have a sustainable go-to-market sales model in place before expanding you team. Listen in to learn the metrics to use for measuring the profitability of your model and the goals you should be setting for your sales funnel.

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Hey, Female Entrepreneurs: Show Up to Investment Meetings and Lean In!

While some might blame the lack of venture-backed, female-led businesses on sexism, .406 Ventures founding partner Maria Cirino doesn’t see it that way. In this post, the former Ernst & Young Entrepreneur of the Year shares her own experience raising capital and explains why the issue has much more to do with confidence.

How Female Entrepreneurs Should Pitch to VCs

Typically, when Maria Cirino and her fellow partners at .406 Ventures enter investment meetings with female entrepreneurs, the tech veteran — who has founded two successful tech companies and an early stage VC — says she notices two distinct things about them.

First, they tend to be less arrogant — which Cirino says is a breath of fresh air. And second, they seem to be more hesitant to actually ask for money — which Cirino finds odd given the underlying purpose of the meeting.

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4 Keys to Building a SaaS Company that Won’t Go Down the Drain

What does preparing the perfect bath have to do with SaaS success? Discover the four keys to sustainable growth for your software-as-a-service business.

4 Secrets to Sustainable SaaS Success

When you think about the essence of what it takes to create a truly valuable software-as-a-service (SaaS) company, the formula is relatively simple: Acquire as many high-quality customers as possible, do everything you can to retain those customers, and develop systems or processes that allow you to add new customers quickly and cost-effectively.

In that sense, it’s a lot like filling a bathtub.

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Make Better Sense of Your SaaS Company’s Data

Discover how you can break down and better utilize the massive amounts of data your SaaS company collects by organizing it into cohorts — and how doing so will lead you to more meaningful and actionable insights.

How to Conduct Cohort Analysis: Turning Data into Action

In the world of SaaS, data is everything. It allows a management team to gauge the health of its company, better understand the impact of key performance indicators like customer acquisition cost, churn, and monthly recurring revenue, and make more informed, cost-effective decisions based on hard evidence, rather than gut feeling.

That’s assuming, of course, that SaaS businesses actually do something with the data they collect.

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