Thomas Tunguz: The Fundraising Market Two Quarters into Covid

It’s been two quarters since the coronavirus has hit Startupland. And you can see the impact of the shutdown in the numbers. We reviewed the data in May and compared it to the effects of the financial crisis in 2008 on startup fundraising.As a reminder, 2008 saw a 40% reduction i … | Continue reading


@tomtunguz.com | 3 years ago

What Is the Structure of the Typical SaaS Company as It Scales?

This post is part of a series leading up to SaaS Office GTM Edition on June 24 in which we’re reviewing the results of the 2020 Redpoint GTM survey. Today, we’re answering the question: how do teams grow as a startup scales?We can derive the table above if we look over the entire … | Continue reading


@tomtunguz.com | 3 years ago

The Minimum Size Seed Round to Maximize Series A Follow on Investment

How large of a seed round should founders raise to maximize their chances of raising a Series A? Smaller seed rounds are simpler and faster to raise because they typically require fewer investors. They may also require less dilution because of the smaller investment size. On the … | Continue reading


@tomtunguz.com | 3 years ago

Where Are Most Unicorns Headquartered?

Earlier this week, I wrote Californian Dreaming - Is Silicon Valley Still the Best Place to Start a Company, where I analyzed the IPO and M&A trends of venture-backed companies by state. Those metrics are lagging indicators of startup distribution. How will the distribution chang … | Continue reading


@tomtunguz.com | 3 years ago

Is Silicon Valley Still the Best Place to Start a Company? • Tomasz Tunguz

So much has happened in the last decade. We’ve seen the rise of massive startups in Europe, South America, China, Israel. Technology entrepreneurship is a global phenomenon. Within the US, there’s much talk of a diaspora out of California and Silicon Valley, particularly with the … | Continue reading


@tomtunguz.com | 3 years ago

Why Margin Matters Now in Startupland

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@tomtunguz.com | 4 years ago

What Could the Venture Market Look Like in the Coronavirus Era

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@tomtunguz.com | 4 years ago

Estimating the Impact of the Coronavirus on Growth

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@tomtunguz.com | 4 years ago

Six Startup Disciplines for Challenging Times

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@tomtunguz.com | 4 years ago

The Impact of the Coronavirus on Software Valuation Multiples

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@tomtunguz.com | 4 years ago

Simpson's Paradox in Measuring Net Dollar Retention Rate

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@tomtunguz.com | 4 years ago

Cloud Prem Architecture

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@tomtunguz.com | 4 years ago

Has VC Become So Big IT Must Be Disrupted?

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@tomtunguz.com | 4 years ago

Trust Is at the Core of Software Marketing

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@tomtunguz.com | 4 years ago

What Is a Best in Class Payback Period for a Software Company in 2020?

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@tomtunguz.com | 4 years ago

Product Launches Become the Operating Cadence of a Startup

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@tomtunguz.com | 4 years ago

What I've learned about IPOs and direct listings

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@tomtunguz.com | 4 years ago

The Early Discipline of Remote Startups

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@tomtunguz.com | 4 years ago

The State of the Startup IPO Market

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@tomtunguz.com | 4 years ago

The State of the Startup IPO Market

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@tomtunguz.com | 4 years ago

The SaaS Correction of Late 2019

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@tomtunguz.com | 4 years ago

The Siren Song of ROI Based Sales

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@tomtunguz.com | 4 years ago

Which Categories of Seed Startups Are Thriving? Which Aren't?

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@tomtunguz.com | 4 years ago

SaaS Startup Key Metrics Template

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@tomtunguz.com | 4 years ago

Setting the Salesforce/Tableau Acquisition in Context

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@tomtunguz.com | 4 years ago

Why Product Innovation Slows After the Series A

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@tomtunguz.com | 4 years ago

The Fundamental Unit of SaaS Growth

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@tomtunguz.com | 4 years ago

As Your Sales Team Scales, Focus on Your Middle

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@tomtunguz.com | 4 years ago

Define the What but Delegate the How

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@tomtunguz.com | 4 years ago

How to Develop Best in Class Sales Efficiency

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@tomtunguz.com | 4 years ago

A Random Walk Down Sand Hill Road

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@tomtunguz.com | 5 years ago

Hustle as Strategy

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@tomtunguz.com | 5 years ago

Viewing Valuation as a Discount of Future Value

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@tomtunguz.com | 5 years ago

Where Have All the Angels Gone?

Rewind a decade. Angel investing was an important part of the Startupland ecosystem. Today, you can’t make the same argument. 2018 observed the fewest number of angel-led financing rounds since before 2010. Angels led 156 rounds last year, a figure that collapsed from 714 in 2015 … | Continue reading


@tomtunguz.com | 5 years ago

Learnings from the Redpoint Free Trial Survey

Top 10 Learning about Free Trials from Tomasz Tunguz At Saastr yesterday, I presented thetop 10 learnings from the Redpoint Free Trial Survey that we distributed in October. The data confirmed many rules of thumb but also raised some interesting new questions about the best way … | Continue reading


@tomtunguz.com | 5 years ago

The Two Things You Need from Early Customers That Matter More Than Cash

As you start to go to market, there are two things to prioritize from early customers that matter more than cash. Feedback and marketing rights.The feedback matters for obvious reasons. The product is early; customer feedback will help you hew the raw granite of your initial prod … | Continue reading


@tomtunguz.com | 5 years ago

Infinity Wells and Deep Work

Over the weekend, the NY Times interviewed a classmate of mine from Dartmouth and fellow oarsman on the freshman crew team, Cal Newport, about his book and his idea, Deep Work. Here’s the crux of the idea: Deep work is my term for the activity of focusing without distraction on a … | Continue reading


@tomtunguz.com | 5 years ago

How Many Managers Will You Need This Year?

Your startup is growing quickly. To hit next year’s target, you may need to hire many people. Where do you start? Bottoms up or top down? Both are viable strategies, but hiring a strong management team at every level provides some key benefits. First, they help you hire more effe … | Continue reading


@tomtunguz.com | 5 years ago

Your company is a product used by your employees

In their book,It Doesn’t Have to Be Crazy at Work, Jason Fried and David Heinemeier Hansson, the founders of 37Signals share how they’ve built and run their very successful company Basecamp. There’s a novel idea in the book: your company is a product used by its employees. [W]hen … | Continue reading


@tomtunguz.com | 5 years ago

Tomasz Tunguz's Favorite Books of 2018

These are my ten favorite books from 2018.The (Mis)Behavior of Markets - Written by Benoit Mandelbrot, the Belgian mathematician who pioneered fractals, this book and theory inspired Naseem Taleb. It’s a powerful book on the uncertain nature of financial turbulence.Creative Selec … | Continue reading


@tomtunguz.com | 5 years ago

The Implication of Secular Increases in SaaS CAC

One of the major trends facing SaaS companies today is the rising cost of customer acquisition. Data on this trend has been difficult to find. Fortunately, Patrick at ProfitWell sent me his survey results across about 800 companies. The chart above shows the increasing cost of cu … | Continue reading


@tomtunguz.com | 5 years ago

The Best Goal-Setting Frameworks

Of late, I’ve been having lots of conversations with founders about setting goals. It’s a really important topic for many founders, because it’s the way that management teams align incentives and focus an organization on a few important areas. It’s their focus that enables startu … | Continue reading


@tomtunguz.com | 5 years ago

Red Hat's Acquisition – A Triumph of Open Source

Over the weekend, IBM announced the largest software acquisition of Red Hat, an open-source software company, for $35B. It is the largest software acquisition in history, and the third largest technology acquisition (Dell/EMC at $67B and JDS/SDL for $41B were both larger hardware … | Continue reading


@tomtunguz.com | 5 years ago

Redpoint invests in Gremlin

Dr. Richard Cook, formerly an associate professor at the University of Chicago, published a paper in 1998 entitled How Complex Systems Fail. In his paper, Dr. Cook lists 18 observations from his research in medicine about failure of complex systems. His insights are directly appl … | Continue reading


@tomtunguz.com | 5 years ago

Access Is the Scarcest Commodity in Startupland

The SEC announced last week that it wants to find ways to let Main Street investors access stage private venture companies. This news item underscores an important trend that is reshaping the industry. Today in Startupland, startup access is the scarcest commodity. Everybody want … | Continue reading


@tomtunguz.com | 5 years ago

1% of Salesforce's Revenue Makes a Unicorn

Salesforce is worth $113 billion. 1% of $113 billion is $1.13 billion. ServiceNow is worth $34B and Workday is worth $33B. 3% of $33-34B is $1B. Atlassian is worth $20.5B. 5% of $20.5B is $1B. Why am I doing all this simple math you might ask?We have reached a point in SaaS where … | Continue reading


@tomtunguz.com | 5 years ago

How Long Should Your SaaS Software Trial Period Be?

How long should you let a customer use your software before they sign a contract? You could offer them a 7 day free trial. Or 14 or 21 or 30 or 90.Longer trials might be better. The customer could delve deeper into the product, become more committed and sign a larger contract. Sh … | Continue reading


@tomtunguz.com | 5 years ago

Why Your Startup Doesn't Invest Sufficiently in Its Differentiators

There are three types of product features, a seasoned head of product told me recently. MMRs, neutralizers, and differentiators. MMRs are minimum market requirements; basic features that every customer expects and demands. Neutralizers mitigate competitive threat. Differentiators … | Continue reading


@tomtunguz.com | 5 years ago