Venture capital has a great expectation for growth and, with it, comes a great pressure to perform. In the quest to grow as big and fast as the Unicorn-crazed market expects, companies find themselves scaling with consequence. After all, not all growth is healthy growth. This article takes a contradictory look at the tough decisions start-ups must face to stay healthy in the face of VC funding.
This Medium article from Parsa VC provides contemporary data to numerically answer the question, “how fast should I be growing to be an attractive IPO candidate?” It explores benchmarks, provides examples of real-world companies, and dives into key learnings from what the data uncovered.
Employee ownership is a great recruiting and retention tool. As the tech landscape has evolved where time to liquidity is longer, the war for talent has grown and transparency around compensation is greater, the argument for option refresh grants has heated up. This Forbes article takes a fresh look at the argument for option refresh grants and the various forms they can take by looking at Shasta Ventures philosophy on the topic.
Tomasz Tunguz asks start-up companies the hard questions they’ll need to answer in order to raise capital. Some questions (and answers) may be obvious while others may take more thought and research.
Jason Lemkin of SaaStr gets real with this article about the truth behind scale. He offers real-world advice about the decisions, frustrations and needs a CEO will face at certain key points during a company’s growth.
This TechCrunch article proposes an interesting formula developed by Bessemer for quantifiably determining a company’s growth efficiency to best understand a company’s health and predict future outcomes.
This forEntrepeneurs article is a culmination of an extensive survey across the SaaS industry that should serve as a great benchmarking tool for the key SaaS metrics every company should measure.
The natural trade-off between burn rate and profitability is one that keeps many CEOs up at night. This SaaStr article explains why no two SaaS companies are the same in terms of how quickly cash is spent and how important it is to be profitable. Plus, it offers some ideas on how to better gauge and understand key metrics when asking this trade-off question.
So often a CEO will aggressively raise as much money as possible. This SaaStr article argues against the need to do just that because of the importance of taking exit valuation into consideration and how a bigger valuation may hurt a company’s chances at being acquired.