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?

You don’t need a banker to build a financial model

One of the “must have” slides in a B2B startup deck is the financial projections model. There is one untold universal truth about these models- they are always wrong (the second thing in common for this part of the presentation is that the CEO always starts it with “we have taken a conservative approach…”) Now, if everyone knows that the model is wrong-… Continue reading You don’t need a banker to build a financial model

Be direct, Sell direct

Israelis are known to be direct, so why not sell that way? One of the first things I noticed since moving back to Israel is that many of the early stage startups we meet have a similar GTM strategy: Sell via channels or OEMs (in addition to some direct sales). This is one of the more noticeable differences from companies we… Continue reading Be direct, Sell direct