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This was originally guest posted on BoomTownBoulder All great relationships have one thing in common: communication. Open and honest communication is the key to any fruitful relationship. So why should your investor relationship be any different? Great entrepreneurs have an open dialogue with their investors and are able to get the most from them. However, at Visible we constantly hear about companies going silent after the money is wired. Why? Here is my hypothesis: startups are hard. This isn’t earth shattering news, but when you start to look into the head of an entrepreneur it will make sense why they have communication problems with their investors. When you are a CEO/founder/entrepreneur, your view of the world is just your company. Your “portfolio” is 1 of 1, so to speak. Updates to your business are typically not amazing. Instead of providing regular updates about the business, a founder will wait until they have amazing news to share. The amazing news never comes, the founder has been silent for 6 months and has 45 days of cash left. Who is more likely to get the bridge round of financing? The founder who has been providing regular updates and correcting course when needed or the one who has been silent for 6 months and has no cash left… It’s always scary to share bad or mediocre news but it is what the great founders do. Why? Because they realize that they can extract value from their investors outside of just capital. An investor’s view of the world is one of many. They have seen failure, success and mediocrity. They know when to step in and when to let go. Great. So how do I communicate with my investors? What do they care about? Consistency is the key. Typically, the earlier you are in your lifecycle as a company the more frequent the investor update. Companies going through an accelerator may be sharing weekly updates, whereas Seed/Series A are monthly, and Series B+ are quarterly. Most early-stage investors care about a couple of key things: 1. Cash in the bank. Cash is the oxygen of the business. Without it you die. This should be the metric that startups have their eye on. All. The. Time. 2. Months to 0. This is how many months until you are dead. Typically your cash in the bank / net burn. You can get fancier and include hiring plans, etc but we like to keep it simple. 3. Key Metric Growth. This is the growth of your “true north” metric. It could be MRR, it could be DAU, but this is the metric on which you define success. Afterall, PG said it best: Startup = Growth. 3. Team. How is the team performing & who are you hiring. You can get a little more advanced here and report on the team composition, e.g. R&D vs Business vs Admin. You could also split our full time employees, part time, and contractors. 4. Asks AKA how investors can help. Having explicity actions for you investors is the best way to leverage them. Saying “looking for intros to BD execs at CPG companies” will not get you anywhere. Saying, I need an intro to Mike Smith at Acme Corp will convert much better! What investors really care about is how you are executing against your plan. Seeing that you have 4,500 MAU is great but how does that compare against the forecast? Ultimately the format is up to you. We see companies put the “Asks” first alongside “Thanks” for those who helped from the prior update. Some include the new hires first. Related Resource: Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors Obviously, we are biased, but Visible was built to solve the investor relations problem for startups. We easily allow you track, visualize and forecast your KPIs and provide a narrative to your stakeholders. Feel free to hit us up if you have any questions or sign up

What is customer acquisition cost (CAC)? Your customer acquisition cost is an important metric used to track your company’s success. It is the sum total of the amount that it takes your business to acquire a customer, including time from your sales representatives and marketing and advertising expenses. The customer acquisition cost definition: the total cost it takes to bring a customer from first contact to sale. A couple of things that commonly contribute to customer acquisition cost are: Advertising costs Cost of your marketing team Cost of your sales team Creative costs Technical costs Publishing costs Production costs Inventory upkeep Of course, when you think about it, it can take a lot to acquire a customer: you may be running dozens of marketing campaigns, have multiple sales departments, and an array of revenue channels. Luckily, your customer acquisition cost formula is going to be comparatively simple: it’s the amount that your company pays to acquire customers in total divided by the number of new customers gained during that time. Why is customer acquisition cost important? Over time, your CAC will also tell you whether it’s getting more difficult or easier to acquire new customers. You’ll be able to look at trends to see when acquiring customers becomes more affordable, and if there are specific seasons during which customer acquisition is more expensive. By using this data, you can optimize your acquisition strategies, and analyze the strength of your business overall. If your customer acquisition costs are going up, that’s an indicator that your marketing and sales aren’t effective. If your costs are going down, your current strategies are working. Customer acquisition cost is closely related to other metrics, such as customer retention, customer lifetime value, and average purchase price. When used in conjunction with other metrics, you should be able to formulate a clear idea of how your company is doing. How do you calculate CAC? If the combined efforts of your sales and marketing team, including any related advertising costs, is $5,000 a month, and you pull in 500 new customers every month, then the total cost of your CAC is $10 per customer: it’s that simple. The lower your acquisition cost, the better — and if your CAC is very low compared to your customer revenue, scaling upwards may be a good option. Tracking your CAC tells you a lot about how your company is operating. If your customer acquisition cost is $100 but your average sale is $50, your business isn’t sustainable; those acquisition costs need to be reduced. If your CAC is $100 and your customer retention cost is $20, retention becomes very important. Likewise, if your customer acquisition cost is $100 and your customer retention cost is $150, your new customer acquisition is more important. How do you improve customer acquisition cost? The best way to improve your CAC is to eliminate expenses that are increasing your acquisition cost. We suggest taking a look at your data and determining what is working best for acquiring new customers. If you are running a paid AdWords campaign and sponsoring events that do not have any attribution to new customers, it may make sense to cut the sponsorship and continue to focus on your paid AdWords campaign. However, you can improve your customer acquisition cost by improving all parts of the funnel. At the end of the day, the more customers you bring in the lower your CAC will be. This means that it may make sense to focus on conversion at lower parts of the funnel. A few concrete examples of how to improve your customer acquisition costs are laid out below: Focus on improving related marketing metric For example, let’s say that you are spending $1000 (with no other costs) and converting 3% of your 1000 website visitors to customers on a monthly basis. That means you are spending $1000 to attract 30 customers — or $33.33 to acquire a single customer. But let’s say we can improve conversion on the marketing site by updating copy, including new buttons, and building new content. Maybe our cost to make the changes goes up to $1200 but we are converting the 1000 visitors at 5%. That means you are spending $1200 to acquire 50 customers — or $24 to acquire a new customer. A huge boost from the $33.33. That is obviously a very simple example with fixed expenses. It is easy to see how you can replicate that idea across your funnel. It may mean getting more website visitors or converting marketing leads to customers. No matter where it is, improving your conversions across the funnel is a surefire way to increase new customers and bring down your acquisition costs. Enhance User Value On the flipside, if you want to increase your customer acquisition costs (or spend more to find new customers), you need to make sure you are giving users value once they become customers. This might mean offering enhanced product offerings, resources, and a stellar customer experience. Implement a Customer Relationship Management (CRM) & Tracking As the saying goes, “you can’t improve what you don’t measure.” In order to improve your customer acquisition cost, you need to have the tools in place to track your acquisition efforts. One of the best ways to do this is by implementing a CRM and keeping the data clean and concise. Customer Acquisition Cost (CAC) examples Customer acquisition can vary greatly based on industry, geography, business model, and lifecycle stage. For example, the customer acquisition for a company with a higher contract value (let’s say B2b software) warrants being higher than a company with a lower contract value (let’s say a customer-facing app). Depending on your business model and market there are many factors that can be included in your customer acquisition cost. On one hand, let’s say we have a B2B software company that costs $100,000 a year. With a high contract value, it means that there is likely a very specific customer that has a very specific problem. To uncover and bring these customers on to make a large investment it will make sense to spend more money to acquire them. This may mean highly targeted ads, hosting events, or having dedicated team members to bring them on onboard. Check out a few different examples below: Example 1 — SaaS Company For example, let’s say our SaaS company spent $12,000 on marketing efforts that ended up bringing in 100 customers. From here, you expect to spend $8,000 servicing customers over the next year. The CAC breakdown for this company would look like this: CAC = ($12,000 + $8,000) = $20,000 / 100 customers = $200 CAC Related Resource: Our Ultimate Guide to SaaS Metrics Example 2 — eCommerce Company Suppose we sell goods and spend $1,000 on marketing efforts and $1,000 on sales efforts. Combined, these efforts bring in 20 customers. The CAC would look like this: CAC = ($1,000 + $1,000) = $2,000 / 20 new customers = $100 CAC Related Resource: Key Metrics to Track and Measure In the eCommerce World Example 3 — Real Estate Company Our last example is for a real estate company. A new housing complex spends $50,000 on marketing efforts and $50,000 on sales to rent out 500 units. The CAC would look like this: CAC = ($50,000 + $50,000) = $100,000 / 500 = $2,000 CAC As you can see, customer acquisition cost can be a very subjective metric. Depending on your company and model it is important to understand what a reasonable CAC is for you. That is why we need to understand your customer’s lifetime value (more on this below). Related Readings: What is a Startup’s Annual Run Rate? (Definition + Formula) What does lifetime value (LTV) mean? There’s a reason why many experts insist Customer Lifetime Value (we’ll use LTV for short) is the most important metric for your startup. The data points you gather for the LTV formula can help assess the overall health of your company. Not only does LTV provide insight into the long-term trajectory of your startup, but it also gives immediate insight into specific areas that need improvement. Knowing how valuable it is to gain each customer is essential. Related Resource: Defining Customer Lifetime Value for Startups: A Critical Metric Customer lifetime value quantifies the value of what the customer acquisition actually brought into the business. Without customer lifetime value, you know how much every customer cost to bring in, but you don’t know how much those customers were worth. Why is LTV important? LTV has a major impact on how you determine and justify customer acquisition costs to your investors. You don’t want your backers to worry that you’re paying huge marketing or sales dollars for customers that aren’t worth the investment. But for SaaS companies and any business relying on a recurring revenue stream or repeat customers, acquiring customers at an initial loss is a necessary component in the long-term success strategy. Many raised questions around Salesforce’s share price when the company’s stock topped $128 in 2011 despite a P/E of 234. But Salesforce’s model is based on incurring high acquisition costs upfront in order to enjoy recurring revenue for years after. The LTV of each customer ultimately becomes a high multiple of the initial acquisition costs. As long as the company maintains a high retention rate, their long-term revenue works like an annuity. I have very little doubt that in the early years of Salesforce, Benioff and Co. maintained trust with their investors by showing them a strong LTV model that projected massive value on the customers they were acquiring at a short-term loss. It’s impossible to justify large acquisition costs in marketing and sales if not. A solid LTV approach can alleviate any reactionary fears from investors when they see a string of months or years in the red and get everyone on board with the long-term focus of the company’s growth. How do you calculate LTV? Finally, it’s time to calculate LTV. If there is no expansion revenue expected for the customers, you can simple use this: To get a clearer picture of LTV, also take into account your gross margin percentage. Here’s how the equation should look: How do you improve LTV? Finally, make sure to adjust your LTV when product improvements or retention efforts increase customer value. Especially for enterprise software companies that continuously add features and raise the annual subscription costs as a result. You can also increase LTV by offering better customer service. Clients will stick around longer and pay more money when their questions are answered quickly and problems are solved. It seems so simple, but customer success can be one of the defining features of a success SaaS company. Reducing churn will really shine in your LTV formula. Lifetime Value (LTV) examples Lifetime value is the amount that the customer will spend with the business throughout their relationship with the business. Some companies only expect to see a customer once, or very infrequently, such as real estate firms. Other companies expect that a customer will come on a regular basis, such as restaurants. The lifetime value of a customer is going to rest primarily on how often the customer interacts with and purchases from the brand. We constructed a model using annual revenue figures. Here’s a look at LTV that you can share with investors: What does LTV:CAC ratio mean? To make your cost to acquire is worth the lifetime value of the customer, it’s helpful to check the ratio between both. LTV:CAC ratio measures the cost of acquiring a customer to the lifetime value. An ideal LTV:CAC ratio is 3 (your customer’s lifetime value should be 3x the cost to acquire them). Related Reading: Unit Economics for Startups: Why It Matters and How To Calculate It Why is LTV:CAC ratio important? As we mentioned above the ideal LTV:CAC ratio in the eyes of many investors and startups is 3. This means that the lifetime value of a customer is 3x the cost to acquire them. As we wrote in our SaaS metrics guide, “ratios closer to one mean that you need to trim expenses. On the other hand, too large of a ratio may mean that you could spend more to gain even more business.” However, a larger number is generally a good sign as long as your business continues to grow. If your LTV:CAC ratio is closer to 1 (or less than 1) you have a serious acquisition problem. This means that you are spending far too much to acquire customers and likely have a large burn rate. There are instances where this is okay if it is part of your plan. For example, to penetrate a competitive market. How do you calculate LTV:CAC ratio? To make your cost to acquire is worth the lifetime value of the customer, it’s helpful to check the ratio between both. Here’s the equation: Having around a 3:1 ratio of LTV to CAC will likely impress your investors. Here’s how that would look in the model: If you want to use the model yourself and upload to your Visible account we’ve made a Google Sheets template that you can find here (make sure to check out the instructions tab). How do you improve LTV:CAC ratio? An LTV model is exactly what is says it is: just a model. After you project your retention rate percentage, your company has to hit those numbers–just as if it were a revenue or profit goals. Otherwise, good customers can quickly become a terrible loss if they don’t renew enough times to turn a profit. The LTV exercise will help keep you on track and determine where your company might need to deploy additional resources to hit retention goals. If the percentage slips, it’s time to figure out why you users are leaving. Is this a product problem? Is customer service underperforming? Sticking to your LTV model will be the canary in the coalmine to know when retention is a problem area for your company and it time to solicit advice and help from your investors. Related Resource: Pitch Deck 101: The Go-to-Market and Customer Acquisition Slide LTV:CAC ratio examples In general, a good lifetime value (LTV) to customer acquisition cost (CAC) is 3:1. If a customer is being brought in for $100, their lifetime value should be at least $300. Otherwise, you will be spending too much drawing in your customers; it will become important to fine tune, streamline, and optimize your marketing and your advertising. A ratio of 1:1 is bad: you’ll only be breaking even on your customer acquisition cost, and your business may not be gaining any ground. However, ratios of 1:1 or even worse are frequently seen when a business is initially scaling. If a company is attempting to grow aggressively, it may be able to do so by sacrificing its LTV:CAC ratio. Ideally, once this growth has been achieved, the company will find it easier and more affordable to gain further clientele. Customer acquisition cost benchmarks Customer acquisition cost can vary quite a bit depending on the industry and company lifecycle. If a company is going to market for the first time, chances are that customer acquisition costs will be higher as they start gaining ground. Most importantly, the industry and business model will be of much significance when evaluating benchmarks for your acquisition cost. As we mentioned above, “some companies only expect to see a customer once, or very infrequently, such as real estate firms. Other companies expect that a customer will come on a regular basis, such as restaurants. The lifetime value of a customer is going to rest primarily on how often the customer interacts with and purchases from the brand.” This means that your LTV and market will dictate what an acquisition cost is. If you’re selling less frequently for larger contract sizes, a higher customer acquisition cost will make sense. If you’re selling more frequently to smaller contract sizes you will obviously need to keep your acquisition cost down to scale across the larger customer base. Using data from Entrepreneur, we can put together a few benchmarks across different industries as shown below: Travel: $7 Retail: $10 Consumer Goods: $22 Manufacturing: $83 Transportation: $98 Marketing Agency: $141 Financial: $175 Technology (Hardware): $182 Real Estate: $213 Banking/Insurance: $303 Telecom: $315 Technology (Software): $395 Related Reads: How To Calculate and Interpret Your SaaS Magic Number Optimize your customer acquisition cost metrics with Visible Discuss with your investors your strategy for improving LTV and CAC over time. You can justify prioritizing product or service investments if you can point to the value payoff as a result. As your company continues to grow you will want to continue to tweak and improve your acquisition costs and lifetime value. In an age where investors are more focus on profitability and sustainability than ever before one of the first places to look is your CAC and LTV. To get started with your LTV:CAC model, check out our free template below:

Using Software for Customer Success After a year with Visible, we’ve changed up a few pieces to work best with our team and to help scale. It’s interesting to see, over time, how the platforms change Checkout my updates below each section in Red. Something that makes me throw money at people/products/services, is the experience I have with them. Over the past several years, I have noticed the little things companies do for their customers, and own employees, to increase satisfaction via experience. What most people don’t see/understand/have patience for, are the platforms used to provide the service and experience. A great example of this is the ‘legacy’ US banking technology (which I could rant your ear off about as much as architectural facts of buildings along the Chicago river) that manages your account. This system, graciously provides the ‘awkward phone silence’ when a rep is waiting to access your account, going through level upon level of access to view your details. Over time, they have learned to fill this void with trivial conversation/up sell, to make you feel comfortable, and feel like a person who is valued. Building a smooth customer experience is not easy, so I’m going through the important factors of what [a non-engineer] calls their ‘full stack’ to provide great customer experience & service. Monitor: Customer usage is key, tracking your customer’s usage allows you to segment specific users for engagement, testing, up-selling, advocacy, etc. Monitoring usage is also one of the key pieces of information to prevent the all-commanding ‘churn’. Platform: We take this data from our back-end and plug it into our CRM (HubSpot) to filter, segment, identify, assign, etc. We also use Intercom to monitor users for ‘automated’ engagement with a personal voice. Analytics: When you’re scaling, you’re gaining lots and lots of users from your targeted funnels, and then some. Product managers are important in making sure you’re exceeding customer needs and continuing to build the envisioned features, versions, etc. Marketing managers need a ways to identify the best funnels of customer conversion and best ‘cost per acquisition’ price. Having an analytics management product allows them to find the sweet spots and make your user base grow, and stick, like crazy. Customer Success pulls these analytics to further monitor and segment users. Platform: We’re still looking at best fits, but some good ones are RJMetrics, MixPanel, and KissMetrics. Ideally will have this connected in or around our CRM. CRM: Email is something I want to get away from as fast as possible when working with customers. Yes I do sound insane, but what I mean is the traditional email platform (gmail, outlook, whatever Apple mail is called) because there is no good way to mange the customer’s account (and expectations) easily and quickly (Streak is making a hybrid that looks interesting). A good CRM makes all the difference in keeping customers engaged and happy as well as managing a team of account managers. This also keeps Sales and Account Managers from asking too many questions, creating breaks in service, on-boarding, experience, and team happiness (you know what I’m talking about). Platform: HubSpot’s new CRM is pretty slick and customizable, we’re eager to keep customizing it to fit exactly how our business model defines our customers. Engagement/Voice: This section is probably one of the most interesting and emerging of recent years. In times of past, being able to create engagement or a voice inside your software (who is old enough to remember Clippy) you would need a designer and front end developer to hash out several iterations until you had enough and waited to raised more money and hire people to complete this task. Engaging customers keeps them happy while on your app, makes them a sticky user or what I learned as a “Happy Prisoner”. This starts with the welcome, goes through on-boarding, and continues as the ‘Voice’; providing valuable content from specific triggers, advising on product/industry specific news, and providing education through knowledge base, blog, or even surveys (check out an amazing project by Brett @ Visible, the Early Stage Confidence Index for Investors). Platform: We currently use Intercom for our Engagement and Voice, we haven’t found a perfect solution for an on-boarding wizard, we’ll update when found. Incident Management/Customer Management: Most people know this part as your standard customer service platform, having a service like Zendesk to manage your inflow of customer queries and conflicts. There has been a movement away from this as an ‘additional’ product with Intercom or having it hosted in your CRM (stay tuned to see my future post “Why Account Managers should not use their email app”). The important parts are being able to reply quickly, collect customer response data, create reporting, and make better decisions (something that Intercom is currently lacking). Platform: Zendesk is known as a major player here, but others are Desk.com, Happy Fox, Fresh Desk, and Help Shift. Knowledge/Education: The tool to help scale and educate, and even more is to create advocates and emerge as an industry leader (more on this in Advocacy). You want to have something that provides easy searching, great UI, syncs really easy to your app, and is super simple to maintain (non-devs will manage this). Platform: Still looking for a good fit here, most Knowledge Base systems are normally packaged with Customer Management, so we want one piece of the package without paying for the whole thing. Advocacy/Marketing: Creating a strong following of users brings a company from ‘cult-like following’ to ‘industry leader/expert’ (Product Hunt is an amazing example). We started with content on our Twitter page and have now pushed forward with our Blog. We’re pushing through great side projects to continue our vision to bring visibility between investors and company founders. Platform: We’re using Buffer to manage our social media posts and have our blog hosted on WordPress Over time, we expect to change a few platforms, build internal tools, and condense the amount of 3rd party applications we use to keep our customers happy. I will say that a secret sauce for a non-technical operator is Zapier (saved this for the readers who actually made it this far into my ‘essay’) which makes me scale my processes like never before.

Start Calculate Bookings Welcome to our latest post in our MVM (Most-Valuable-Metric) series, last time we filled you in on Lead Velocity Rate. Today we want to drop some knowledge on bookings. Specifically we want to fill you in on why bookings are great, how to calculate bookings and how they differ from other similar metrics. When we first started Visible, a good amount of SaaS CEOs told me about bookings and why they are the primary metric for their company. This was the first I heard of bookings so I looked into it. What I quickly realized is that bookings are a forward looking metric that previewed revenue to come and give a great look into the health of the business. Now that I figured out why bookings were so important, I had to figure out how to calculate and learn a little more. The first thing I learned is that bookings are not a GAAP defined term so the definition may vary depending on the company. However, our goal is to create the standard of bookings for early stage startups to use going froward. Here it goes: Bookings are the value of all transactions in a specified period of time normalized for one year. Fred Wilson breaks it down very simply on his AVC blog, “When a customer commits to spend money, that is a booking”. This includes subscription revenue, non-subscription revenue, professional services, etc. Lets break this down and visualize an example. Lets say for January 2015 you want to calculate bookings and you have the following transactions: 24 month contract @ $1,000 per month (paid bi-annually) 12 month contract @ $2,000 per month (paid upfront) $5,000 one time setup fee (paid upfront) $3,000 professional services (paid upfront) 6 month contract renewal @ $500 per month (paid quarterly) Upsell on 1 month to month contract with new price @ $1,000 per month. Jan 2015 Bookings = $48,000 (You’ll see we didn’t include the 2nd part of the first contract for this calculation). How does this differ from Revenue, MRR or Collections? Revenue is only recognized when a particular service is used. If you have professional services and/or a setup fee included as part of a software contract then the revenue is ratably recognized over the lifetime value of the customer (lets assume 1 year). So looking at the same set of transaction you’ll have revenue of $5,166. MRR only applies to the subscription part (aka recurring) part of the business so the MRR will be $4,500 in our example. Collections happen when the customer actually pays you and the cash is in the bank. Going along with the example above collections in January will be $40,500. It’s important to track all of these metrics in parallel for your business and how they work together. You want to make sure you have future and predicable cash flows coming in (Bookings & MRR) but also making sure you are getting paid (Collections) and that you can recognize it (Revenue).

At Visible, we talk every day with founders and early-stage investors from around the world and have found a few key themes emerge in our discussions: Founder frustration with investors who don’t deliver on their promises – the connections they say they will make and the expertise they say they will offer Investor frustration with founders who go off the grid, only to emerge and make “asks” when it is too late to save a project or company Blame being placed by people on both sides of the table instead of analyzing the root cause of the relationship breakdown Fortunately, the venture platform model (also called network or community model in some places) has become more and more pervasive, indicating an increasing desire by investors to put more “walk” behind their value-add “talk” and a desire by companies to work with investors that embrace this strategy. The success of firms like First Round and Andreessen Horowitz, in both returns and mindshare, is a testament to this trend. For the uninitiated, Frontline VC’s Kim Pham recently wrote a great primer on the subject. At its core, the venture platform model is focused on helping companies and investors get back to building businesses by using transparency as a tool (TaaT) to unlock growth that would have otherwise not been possible. In many ways, it means proactively opening the network communication bottlenecks that can prevent strong venture communities from coming into existence organically. Companies want engaged investors and investors want to stay up to date on a company’s progress in order to make good on the expertise and connections they promised prior to wiring the money. So if both sides understand the importance of keeping lines of communication open and subscribe to the idea of the venture platform model as a way to accelerate growth, why is the ball still being dropped time and time again? Not realizing that habits form early – in companies and in their relationships with investors Term sheets are signed, money is wired and the company building can begin in haste. Unfortunately, a lot of investors and founders forget to set up front expectations for how the relationship will work apart from “please help me return capital to my LPs”. When there are one or two investors on a cap table, inbound requests don’t seem so daunting. When you raise your seed round and add 6 more investors, then a Series A with 3 others, the inbound requests become extremely distracting and pull you away from things like product, sales and hiring. Spending a few minutes each month putting together your investor updates can help you get some of that time back. Better yet, they tend to gain momentum as positive reinforcement – in the shape of more intros from the network and expertise assistance from investors – starts pouring in. Thinking it is too late to start When investors see a portfolio of 10, 20, 50 companies across multiple funds it can be easy to start thinking that things, from a portfolio communication perspective, are too far gone. They prefer to “wait for the next fund or accelerator class” to get started which sounds a lot like the way people who need to get back to the gym sound after their new years resolution wears off. Biting off little pieces – again, same principle as getting back in shape – is a great way to start. As an investor you have inbound requests to meet your companies and outbound desires to make the right introductions. Having all of your key investment data in one place pays huge dividends by saving time and mental overhead and truly leveraging the power of the network you have built up. The oft-used proverb about the best time to plant a tree comes to mind here. Visible: More time for more important things That means less time spent copy and pasting messages to three four or different investors. It means not having to dig through a Dropbox, email and Excel each time someone needs info on one of your portfolio companies. It means getting back to the business of building businesses. If you need some inspiration, our reading list is a great place to start. We’ve collected some of the best advice from around the investor community and continue to update it as new posts and content roll in (Note: everything you see there – reporting metrics, templates, etc. can be setup and tracked quickly and easily through Visible). If you have any questions about getting started, feel free to get in touch.

Growing or Scaling? I was chatting with a student looking to get into the startup world. This particular student wanted to join a newly launched app and help “scale” the company. I paused and asked, “Do you mean help grow the company or scale it?”. Super early stage startups are rarely “scaling”, rather they are doing anything possible to grow. They are doing things that are not scalable, trying to find product-market fit and cold emailing just about everyone to try their product. When you are trying to grow your company, you hope to find a repeatable process that will scale one day. Growth means every unit of input yields the same predictable output. Scaling allows your output to exponentially grow while keeping your input the same. Here are 2 great examples I’ve encountered at Visible : 1) I was the sole BD guy when we started and I would ad-hoc email potential customers, it was too early to do anything more sophisticated. I would track these potential customers in Streak. Over time, our core customer developed and I knew sending 100 emails yielded 50 responses to 35 demos and 10 deals won (made up #s). Luckily, we had some growth so we were able to have Brett join the team. He quickly took my archaic (yet proven) process, setup a Tout account, and in the same amount of time he was able to effectively email 10x the amount of potential customers. With the same amount of input (hours) we were able to scale our outbound sales 10x. Which brings me to point #2. 2) Since we were successful in point #1, I increasingly had to help setup trials for potential customers, onboard new customers or handle support. I was primarily using email to handle all of this. It was tedious but it was too early to try and setup a help desk or an onboarding process. Eventually this wasn’t repeatable and things broke down. Nate then joined the team to handle customer success and operations. He tricked out Intercom, setup potential trial-ers on Formstack, on-boarded new founders on Lesson.ly and has our whole process buttoned up and scaled…for now. Brett & Nate are still testing out new distribution channels, re-engagement campaigns and more by “brute forcing” them. When something works, we will scale that process. Startups are in a perpetual state of grow -> scale, grow – > scale, grow -> scale. Coincidentally, Jeff Bussgang at Flybridge Capital just penned this post on “Scaling the Chasm” which is a great read. Related Resource: 7 Startup Growth Strategies There is a certain sexiness that comes from scaling a startup (that’s why they exist) but to get there you have to put in the work in and find out how to grow the company first.

Last week we launched some great improvements to the most popular features of Visible: Portfolio charts, reports & custom dashboards A new update builder for founders Ability to quickly add popular metrics Take a look below! Portfolio Charts, Reports, and Custom Dashboards: Fund managers can now create their own charts comparing metrics across any of their portfolio companies. Just click the “Reports Tab” from your fund page . Investor Updates Builder When building an investor update, founders can now add rich text that is added to the highlight stream and sent in the notification email! Notification Emails: The notification email your stakeholders receive when you send investor updats will now include your company logo & the highlight text from the update builder. You can reply-all in the email! Popular Metrics: In the Manage Metrics area founders can now easily add popular metrics to share with stakeholders .

Transparency: Who are Visible’s Competitors? I probably get asked who Visible’s competitors are on a daily basis. This questions bugs me and I feel like people ask it for one of two reasons: They ask the question just to ask the question. My guess is that they ask it to make it feel like they are asking a “hard hitting” question and seeing how I respond. They are considering buying a portfolio monitoring tool and want to know where else to look so they can compare. For person number one, there are so many other things I’d rather talk about as an entrepreneur and operator than my competitors. I’m fully aware of them and know who they are. You also do not need to be constantly forwarding me emails about my competitors because I’ve already seen them, signed up for their service, and know what they are about. I’m living and breathing this 24/7. For person number two, I’m about to make your job incredibly easy. Below are all of the direct Visible competitors including their pricing relative to other solutions and what their offering is. You’ll see I didn’t list pros or cons or compare against Visible, so feel free to check them out. I’m incredibly confident in the value our team offers and our product. We are laser focused on crushing this problem. I cant wait for everyone to see what is next… Again, the companies above are people I believe directly compete with Visible. There are other services out there that have similar functionality but it isn’t their core focus. Next week we are releasing a breakdown of their entire software industry for the venture investing market–stay tuned!