Focus on building trust with investors first

Ray Walia of LaunchVC: How to Hack Your Way into Getting an Investment Deal with an Investor (medium.com link)

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Build network effects

NFX: The Network Effects Bible (nfx.com link)

NFX: The Network Effects Manual: 13 Different Network Effects (and counting) (nfx.com link)

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Rolling venture funds

AngelList: Introducing Rolling Funds – Always-Open Venture Funds (angel.co link)

Tired of SPAC’s? Try a rolling fund

Rolling Fund News: Rolling Fund FAQ: What Is A Rolling Fund? (substack.com link)

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Why low burn rate is important

Burn rate is the amount of money you spend in your startup at a given period (usually, a month). It includes total expenses: the cost of goods sold, R&D, sales and marketing, and general and administrative (saasholic.com link)

Investopedia: How Burn Rate Is a Key Factor in a Company’s Sustainability (investopedia.com link)

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Startup fundraising napkin

Point Nine Capital: What does it take to raise capital, in SaaS, in 2020? (medium.com link)

Point Nine Capital: What does it take to raise capital, in SaaS, in 2019? (medium.com link)

Point Nine Capital: The AI-first SaaS Funding Napkin (medium.com link)

Point Nine Capital: The Marketplace Funding Napkin 2018 (medium.com link)

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Company funding types

CrunchBase: Glossary of Funding Types (crunchbase.com link)

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Startup growth rate

Amplitude: 3 Mistakes You’re Making with Month-Over-Month Growth Rates (amplitude.com link)

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Startup churn rate

ChartMogul: Net vs. Gross Revenue Churn: Best Practices (chartmogul.com link)

ProfitWell: How to Achieve Net Negative Churn for SaaS (profitwell.com link)

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Customer profitability

Customer profitability is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler,”a profitable customer is a person, household or a company that overtime, yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling and servicing the customer”. The purpose of the metric is to identify the profitability of individual customers (as opposed to total company revenue or average profit per customer) as some customers can indeed be unprofitable to maintain (wikipedia.org link)

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How product market fit feels

There is no one-size-fits-all definition of how product market feels, but we tend to think about it as physics resonant frequency: When an oscillating force is applied at a resonant frequency of a dynamical system, the system will oscillate at a higher amplitude than when the same force is applied at other, non-resonant frequencies (wikipedia.org link) – you are not exactly sure where it is (because real-life systems are often too complex to have exact systems), but you can measure it and identify when you are going in the right direction, and once you are in the ballpark, even if not exactly spot on, the system will amplify its own signal.

Also see:

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