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The following is part two of a guest post series by Rob Gonzalez. You can find part 1 here and part 3 here. Rob is the co-founder of Salsify, a leading cloud-based product content management and syndication solution that I invested in in 2013 and where I currently serve on the board. Prior to founding Salsify, Rob was...

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 following is part 1 of a guest post series by Rob Gonzalez. You can find part 2 here and part 3 here. Rob is the co-founder of Salsify, a leading cloud-based product content management and syndication solution that I invested in in 2013 and where I currently serve on the board. Prior to founding Salsify, Rob was...

“Talent is the limiting resource in everything we do right now.” If that observation rings true, you’re not alone. Despite every effort, most startups struggle to hire the best people. My partners and I believe developing a competency in hiring is one of the most important skills a founder can develop. And, while most...

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...

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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...

This article was originally published as part of a series of posts on GigaOm. Different phases of a startup’s lifecycle require different approaches to spending. In my previous post, I talked about the first phase: finding product/market fit. I described how entrepreneurs should have a laser-like focus on finding it,...

This article was originally published as part of a series of posts on GigaOm. As a VC and five-time entrepreneur, I frequently see two common mistakes being made by startups: Companies spend too much attempting to grow the business when it’s not ready for such growth; or Companies don’t spend enough money when the...

An Interview with Andrew Quinn of HubSpot Having a high performing team means: Hiring the right people Creating a structure and culture for them to do great work Equipping them with the knowledge and skills to work effectively These first two topics have received a lot of attention in the startup community. In fact,...