Posts by: David Skok

About David Skok

I started my first company a few months after leaving university at the age of 21, and over the next 25 years, founded a total of four companies. After 25 years as an entrepreneur myself, I became a venture capital partner at Matrix Partners. As a VC investing in software and internet companies, I have had the very good fortune to invest alongside some spectacular management teams, including JBoss (acquired by Red Hat), and AppIQ, Tabblo, Netezza, Diligent Technologies and CloudSwitch which have all had successful exits. I currently serve on the boards of CloudBees, Digium, Enservio, HubSpot, Meteor, Namely HR, OpenSpan, and Zaius. The articles I write for this site are another tool I enjoy providing entrepreneurs to help them start their companies.

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Here are my most recent posts

Intro In the early stages of their business, founders often struggle to come up with really strong messaging to describe what they are selling, and this has a huge impact on their ability to raise money, find customers, and attract employees. This is not that surprising, as it can be really hard to arrive at great...

I’m excited to announce I’ll be participating in a ProductHunt LIVE Chat on Friday 4/29 at 11am PT. It’s AMA (Ask Me Anything) style and while the event will be open to any topic you’d like to ask about, I’d especially like to hear questions you have about growth and building a business, cloud computing, SaaS,...

This post is a companion piece to our how-to guide on SaaS Sales Compensation: How to Design the Right Plan. We recommend starting with this first, broader post. When to pay commissions Another important consideration in your plan, in addition to what you pay, is when you pay commissions. There are three options, each...

This post provides an in-depth look at how SaaS companies can approach setting sales quotas and commissions. It is a companion piece to our how-to guide on SaaS Sales Compensation: How to Design the Right Plan. We recommend starting with this first post. When setting specific comp targets, you’ll want to start by...

Intro Sales compensation is a more complex topic for SaaS/subscription revenue companies. Unlike traditional software sales, the job of sales doesn’t end when a new customer signs a contract. Instead, it is crucial to retain customers over many years, as that is how you maximize your revenues. In this blog post we...

SaaS/subscription businesses are much more complex than traditional businesses, and SaaS performance cannot be measured in the same way as traditional businesses are measured. Based on a talk given at the SaaStr Annual Conference in San Francisco, this slide deck offers a comprehensive and detailed look at the key...

forEntrepreneurs is focused on writing about pressing topics founders are encountering and sharing the best resources and advice we can find to help you build your company. Based on readers’ feedback, we’re sharing the top articles from forEntrepreneurs in the hopes that you gain some new insights as well. Please enjoy...

We look at how to compute the right discount rate to use in a Discounted Cash Flow (DCF) analysis. This post is a supplement to a blog post titled “What’s your TRUE customer lifetime value (LTV)?  – DCF provides the answer“. My thanks to my partner Stan Reiss, who co-authored this piece with me, providing all the...

Overview The old formula that everyone uses for customer lifetime value (LTV)) –average gross profit per customer divided by churn – ceases to work properly when you have very long customer lifetimes and negative churn. LTV can become infinite, which clearly doesn’t reflect reality. This post offers a new way to...

The competition for hiring the best top talent in startups has never been higher. The best people are almost never on the market, so it’s imperative to develop recruiting processes to find and sell passive candidates. It may take months or years of relationship building with these candidates to find the right moment...

Last week I posted the results from Part 1 of our survey in which 300+ SaaS companies shared data on their growth and go-to-market strategies. This week I’m sharing the results from Part 2 of the survey where we compare application delivery methods, operational costs and gross margins, contract terms, churn rates,...

For the fourth year in a row, we worked together with Pacific Crest Securities, an investment banking firm with a specific focus on SaaS, to survey 305 SaaS companies. This survey represents deep benchmarking data and insights on the growth and operations of the companies in this space. I want to extend my personal...

We’re excited to share the forEntrepreneurs SaaS Survey Infographic, which highlights major parts of this year’s SaaS Survey results. With all the data in the survey to help SaaS companies benchmark their growth, we thought it would be useful to show the major insights in a more graphical form. For the full results and...

Hello, and welcome to the re-designed forEntrepreneurs blog site!   We’ve updated the design of the forEntrepreneurs blog site in an effort to bring you the same in-depth content and resources but with an improved experience. I wanted to make it easier for you to browse and find what you’re looking for, especially...

This article was originally published as part of a series of posts on GigaOm. In my two previous blog posts, I’ve discussed the first two of three key phases in a startup life cycle: finding a product/market fit, then determining a repeatable and scalable sales model. Once you’ve determined that the sales funnel...