How to improve your investment pitch

There are many blog posts out there about how to build your VC pitch deck, what to include and not include in it etc. But much more important than what you say is how you say it. At the end of the day, the one thing that investors care about most is YOU. When we… Continue reading How to improve your investment pitch

It’s all about the churn

As discussed earlier the two most important metrics of a SaaS company are growth rate and retention rate.  Wall Street understands this and considers retention as the second most important factor in valuing a SaaS company (first is growth rate). I would take it even further and argue that for SaaS startups retention should be… Continue reading It’s all about the churn

Choosing the right partner

In my previous post, I talked about the importance of having a financing strategy, and one of the most important elements of your financing strategy is selecting the right investor. When you choose an investor you are committing to them much like you’d commit to a spouse. But unlike in marriage—where you can get divorced without burning… Continue reading Choosing the right partner

The importance of a Financing strategy

Every good entrepreneur has a clear business strategy. Most likely, he has also spent a lot of time thinking about his Go To Market (GTM) strategy and how to best acquire customers.  Some even go as far as having an HR strategy for when and how they recruit senior executives. The one thing that is… Continue reading The importance of a Financing strategy

You deserve better! Bad investor behavior

Raising capital is a full time job. Except for a few lucky startups that cruise through the process, most entrepreneurs find themselves spending too much time fundraising. Instead of focusing on the important aspects of your company like building a great product or winning another customer, you are forced to wander around VC land and courageously defend your business plan as investors tear it apart… Continue reading You deserve better! Bad investor behavior

Pricing too low

Pricing right is one of the most tricky questions early-to-midstage startups face. On the one hand, you want to be cheap enough to make it a “no brainer” decision for your customers to adopt your product. But on the other hand, you want to make sure you are not leaving too much money on the table.… Continue reading Pricing too low

Don’t build a Swiss Army knife

One of the most common pitfalls for Israeli startups is trying to provide everything to everyone. Perhaps the reason for this phenomena is that many of the Israeli startups are led by teams of strong technologists who invest heavily in product capabilities and feel pride when their product outperforms competition in EVERY angle and feature. Moreover, it is often not a… Continue reading Don’t build a Swiss Army knife

Why valuations don’t reflect real value

In the previous post we discussed how the public market values SaaS companies and which metrics you should measure.  Today I want to discuss what happens behind the scenes when investors determine the value of an early stage startup. The truth is that determining the value of a startup is much more art than science. The reason is that as investors we… Continue reading Why valuations don’t reflect real value

Grow or die

Now that we’ve talked about why SaaS is a beautiful business model, I’d like to give some guidance and tips to help do it right. Of course there is no “one size fits all” answer to how to do SaaS, but there are many things which are common across companies and many things we see that… Continue reading Grow or die

So you want to kick SaaS?

SaaS is one of the most beautiful business models out there. At BVP, we have been extremely bullish on it and have probably one of the largest portfolios of SaaS companies out there. The benefit of this model also hasn’t escaped public investors which can be seen by the BVP cloud index, which tracks 38 public Cloud Computing Companies. The average company… Continue reading So you want to kick SaaS?