Visible Blog

Earlier this year, we asked top early stage investors for their opinions on the future of accelerators and their answers stood in stark contrast to their views on the rest of the market. While they were optimistic on the general state and future of the early stage market (although the Series A crunch worried many), their outlook on accelerators was overwhelmingly bearish. Image via Q1 2015 Sentiment Index Report – Download for Free Here After receiving funding from accelerators, companies often receive their next round of funding from seed stage firms, the so called “Micro VCs”. Firms of this type had a record year of fundraising in 2014, meaning that plenty of capital is available in the market for companies at the stage. However, this doesn’t mean that the fundraising process is any easier for accelerator backed companies than it is for ones that haven’t gone through a program. In fact, because of the way perceptions are forming among later stage investors, it may be getting harder “There are too many incubators and that has hurt them all. Too many entrepreneurs think if they get into an incubator they have accomplished something. They haven’t. It’s a false sense of confidence. Call it incubator inflation.” – Mark Cuban in a 2014 Triangle Business Journal interview Last week in Montreal, our team attended AcceleratorFest, held a day before the well known StartupFest that draws in top entrepreneurs and investors from across the globe. Sustainability seemed to be on the minds of many at the event, with a panel focused on the topic as well as separate breakouts intended to help facilitate discussion among industry leaders around what approaches and platforms can help contribute to the long term success of a nascent accelerator. Related resource: The Top 16 Accelerators Powering Startup Growth 1. Understand what value you are adding to the companies entering your program The world and it’s high growth companies don’t need another one size fits all accelerator. This is something that was clear in our earlier survey of investors and also to conference attendees. Without a world class brand behind it (see: YCombinator) an accelerator with too wide of a focus will only end up getting second tier companies in their respective industries and verticals. 500Startups, whose Elizabeth Yin was a speaker at the conference, has carved out a successful niche by helping companies focus on product distribution and growth. They have done this by developing a strong set of subject matter experts and a quantifiable framework that companies follow throughout the program. (AARRR) Companies enter the 500Startups program knowing that they are going learn how to more effectively acquire customers and the firm delivers on it promise. Another example of this targeted approach is the Fashion Technology Accelerator. With offices in San Francisco, Milan, and Seoul, they are able to expose companies to the world’s hubs of high technology and high fashion, helping form valuable connections with suppliers, distributers, and technical talent. Related Reading: What is an Incubator? 2. Prioritize alignment among all of your key stakeholders One thing that is not often discussed is the importance of understanding the motivations (and performance) of everyone involved in your program – companies, LPs, mentors and your own team. Successful alignment comes from being able to successfully tell the story around the purpose of your firm as well as the performance of the companies in your programs. Your goals as an accelerator leader dictate the story you tell to the LPs funding your accelerator as well as to the companies you are targeting. Once companies are in your program, the focus shifts to empowering the founding teams to understand and tell the story around their key data. This helps increase the odds of success in post-program fundraising and supplies you with the information you need to keep your own backers engaged in your progress. Alignment from top to bottom (and bottom to top) drives sustainability. 3. Build a “Startup Compost” In the aforementioned panel on sustainability in the accelerator market, Sylvain Carle of Montreal-based accelerator Founder’s Fuel coined a new term to help program leaders understand how they should work most effectively with the companies in their programs that will inevitably fail. He calls it “Startup Composting”. Accelerators spend a lot of time (and money) educating founding teams and setting them up for future success. Unfortunately, that success often comes too far in the future for the accelerator to see much benefit. To run an effective “Startup Composting” program, it is crucial to understand exactly how all of your companies are performing (both while in the program and after) so that you can help teams understand when it may be time to pivot to a new business model or think about blowing things up and either starting fresh or joining forces with one of your other teams whose company is on a more likely path to success.

Software Stack for Investors Every week our team collectively talks to hundreds of investors and startups. We frequently hear about the tools they are using and the tools they would love to have. We also get a lot of people asking for our opinion on what CRM they should be using or wondering what Investor Y is using for their back office. Over time we’ve saved all of these data points and have created the tech investing “software stack”. It buckets various products into categories such as CRM, Databases, Back Office, etc. Find it below! Please note: the logo sizes or hierarchy don’t reflect company size, performance, etc. Want the PDF version? You can download it here. Think we missed something and want to see it added? Mention us and the post at @VisibleVC

For people involved in the world of startups, determining what content sources to trust and what outlets to read can be a daunting task. Tech blogs, company blogs, VC blogs, Medium. Add to that the fact that people at early-stage companies tend to wear multiple hats and are looking for tips and tactics to help them excel in all of their roles and it seems like the firehose of information never stops. So how do you separate the signal from the noise and make sure you aren’t spending all of your time finding good stuff to read instead of taking action on the learnings? Related Resources: Our 15 Favorite Newsletters for Startup Founders, 6 More Great Startup Newsletters, How To Write the Perfect Investor Update (Tips and Templates) Startup newsletters are a great place to start and we have put together a list of some of our favorites to help you spend less time browsing for content and more time learning from peers and others with something interesting and important to say. Industry News & Curated Reading Lists First Round Review Whether your job is to build product, make sales, build community or do just about anything else that comes with building an early-stage company, you will find the First Round Review extremely useful. By using stories from First Round portfolio companies, the First Round review shares valuable lessons and does so with high production quality. Why We Love this Newsletter We love the First Round Review because of the first-hand stories. The team surveys and interviews the best leaders in the space to uncover stories and strategies to help startups at any stage grow. SaaS Weekly from Hiten Shah Hiten Shah is the founder of CrazyEgg and KISSmetrics (and now a startup podcast co-hosted with Close.io’s Steli Efti) so he know’s his stuff when it comes to growing a SaaS business. In his weekly newsletter, Hiten organizes SaaS focused content by category for easy reading no matter one’s job title or expertise. Why We Love this Newsletter Hiten offers a great look into the SaaS world by drawing on his own experiences from building some of the most successful Saas companies. Related resource: 11 Top Industry Events for SaaS Startups Benedict Evans’ Newsletter As Benedict Evans, a Partner at a16z puts it, the newsletter (delivered every Sunday) covers interesting developments in tech and mobile (globally) along with commentary on what it means for the market. Why We Love this Newsletter Benedict Evans is a bonafied thoughtleader in the space and offers good insights into the market in general as well as macro trends. Work-Bench Enterprise Weekly With links, events, and funding rounds focused specifically on the sector, the Enterprise Weekly – produced by venture fund and startup community Work-Bench out of New Your City – gives you everything you need to stay up to speed on the world of enterprise tech. Why We Love this Newsletter The Work-Bench Enterprise Weekly newsletter covers all things related to the enterprise world. They offer resources and insights as well as recent news and fundings in the space. The Visible Weekly Newsletter We search the web for the best tips to attract, engage and close investors, then deliver them to thousands of inboxes every week. We share everything to help founders succeed — everything from fundraising to mental health. Subscribe here. Why We Love this Newsletter We might be bias (as the Visible Weekly is our newsletter!) but we pride ourselves on curating the best content from investors and founders in the startup space to help founders grow their business. The Founder Playbook by Hustle Fund As put by the team at Hustle Fund, “The Founder Playbook is all about tactics. Specifically, tactics around fundraising and growing your startup. We cover things like: What metrics you should know before you pitch an investor How to grow an audience when you don’t even have a product yet And how to write a kickass cold email” Why We Love this Newsletter The team at Hustle Fund are well rounded in all things growth and fundraising. The Founder Playbook is full of some of our favorite fundraising tips as well as growth strategies for early stage startups. The Hustle The Hustle is full of trending topics in the tech space. While not the strategic advice that other newsletters on this list offers, The Hustle offers compelling stories and trends in the space. Why We Love this Newsletter The Hustle has the scoop on some of the most insightful, and entertaining, stories in the tech space. By having a pulse on the space, you’ll be able to better understand macro trends. Startup Funding & Venture Capital Newsletters CB Insights High-quality, data-driven insight into what is happening in the world of early-stage funding and company building, always delivered with a bit of an edge and a dash of humor. The CB Insights Newsletter is packed with sector specific research, breakdowns on emerging markets and companies, and insight into how the early-stage market is transforming. Why We Love this Newsletter The CB Insights is full of data-driven stories written with a level of humor. The daily newsletter is packed full of data, stories, and trends in specific sectors. StrictlyVC Interviews, funding updates, news on key personnel developments at top companies. StrictlyVC gives you a concise daily rundown of everything that you need to know about what is happening in the startup and venture world. Why We Love this Newsletter StrictlyVC is our go-to newsletter when it comes to news with startup fundings and acquisitions. The daily newsletter highlights any new fundings, acquisitions, and hits on major stories. Term Sheet While Term Sheet, from Fortune’s Dan Primack, tends to focus more on the growth stage and private equity markets, it is still a crucial bit of reading every weekday morning. Know what companies raised, who the new funds on the block are, and understand how developments in other stages of the private markets could impact your business. Why We Love this Newsletter Similar to StrictlyVC, we love Term Sheet because of the quick hits on news and the reliable data on funding and acquisition news. Growth & Marketing Newsletters TenSpeed Newsletter TenSpeed helps companies growth with content marketing and SEO. As they put on their website, “Every month, we share tactical advice on one topic, plus the best of our blog content and latest podcast episodes, all in one place. Take your content marketing efforts the extra mile by signing-up below.” Why We Love this Newsletter The teammembers at TenSpeed are total pros in all things content marketing. Their monthly newsletter comes full of indepth resources and guides to help take your content marketing to the next level. Kyle Poyar’s Growth Unhinged Kyle Poyar is a partner at OpenView Ventures. Kyle has been a huge proponent of product led growth and uses his newsletter to share new learnings and insights from his own research and portfolio companies. Why We Love this Newsletter Kyle Poyar offers some of the best advice when it comes to product led growth for SaaS companies. The newsletter is full of strategic advice to help SaaS companies fuel growth. The Blend by The Juice The Juice is the world’s largest library of sales and marketing resources. As a team that curates the best growth content, their newsletter is full of their favorite takeaways and lessons in content marketing. Why We Love this Newsletter With a skilled team of marketers, the team at The Juice puts together great insights when it comes to all things content marketing. Design & UX Newsletters Sidebar A simple concept…the 5 best design links, in your inbox, every single day. No fluff, just a quick, easy way to receive a curated list of interesting articles, videos and projects about the world of design. Why We Love this Newsletter The Sidebar newsletter is a great daily newsletter to stay up to date with the best in design. The newsletter is simple and easy to digest. InVision Weekly Digest InVision is an indispensable tool for many designers, product people and marketers. With a subscription base of over 800,000 designers, the same can be said for their weekly newsletter, which shares useful tactics for creating better products and give a behind the scenes look at how some of the world’s best design teams bring ideas from concept to market. Why We Love this Newsletter As one of the most popular design tools, the team at InVision is full of insights and tactics that are useful to seasoned designers or founders doubling as a designer in the early days. One Design Company Weekly One Design Company is a Chicago-based design, strategy and development agency that puts out an awesome weekly email packed with fun links, food for thought and some of the most useful posts on design and development from around the web. Why We Love this Newsletter The One Design Company newsletter offers fun and insightful posts on design and development that will keep any designer engaged. Subscribe to the Visible Weekly Newsletter Today Building a startup is difficult. Turning to the resources, leaders, and peers that have been there before is a great way to learn on the fly. To stay up to date with what our favorite investors and founders are staying in the space, subscribe to the Visible Weekly. Related Resource: 10 Foodtech Venture Capital Firms Investing in Food Innovation We search the web for the best tips to attract, engage and close investors, then deliver them to thousands of inboxes every week.

If you are anything like our team here at Visible, you bookend your days at the office with StrictlyVC and the Mattermark Daily. Over time, both have proven to be extremely useful sources of startup content – StrictlyVC opens things up with the day’s funding news (and great interviews) and Mattermark closes things out with thoughtful pieces from investors and operators for the ride home. Related Reading: Business Startup Advice: 15 Helpful Tips for Startup Growth Mattermark’s founder, Danielle Morrill launched the newsletter almost 2 years ago aiming “to provide a weekly rundown of interesting events, data, and insights from the startup world”. It has since turned into a daily publication that has featured over 1500 different articles from founders and investors sharing tips and insight on everything from designing products to dealing with the difficulties of running early stage companies What the Startup World Writes About | Create infographics We utilized Import.io to comb through the Mattermark Daily archives and analyze the headlines of all of the articles from over 190 editions of the Daily. Not surprisingly, words like ‘Startup’ and ‘VC’ were among the most common while the remaining words on the list paint an interesting web of all the things people in the startup ecosystem (some would say echo-chamber) think about and discuss on a daily basis. Markets and Models | Create infographics Building a company is uncharted territory for first-time founders, people early in their careers and those entering new markets or exploring new business models. Luckily for advice seekers, especially those hoping to understand and grow SaaS or Mobile businesses, there was plenty of great content to choose from. 50 Shades of Green | Create infographics How can we raise, spend and eventually make money? How come you keep asking me for money…and why aren’t you a unicorn yet? These are some of the things that founders and investors, respectively, focused on as hundreds of posts throughout the Mattermark archives feature thoughts on raising funding, exit opportunities and everything that happens in between. People | Create infographics If there is one thing we learned with this exercise, it is that VCs have a bit of a tendency to talk about themselves. Some of it is navel gazing, sure, but most provide an interesting peek behind the VC curtain or words of advice for founders looking to raise money, make key hires or scale their businesses. PG & @pmarca | Create infographics It is no surprise, with the ubiquity of YCombinator and the continually growing relevance of A16Z, that Paul Graham and Marc Andreesen share the top spot for most mentioned individuals. Add that to the list of examples showing how much weight people in the technology industry place on the opinions of top investors. Women in Tech | Create infographics Women in technology, one of the most important issues facing the industry, featured heavily in Mattermark’s archive with a primary focus on profiles and interviews of women in technology leadership positions working to inspire the next generation of female CEOs, investors, hackers and painters. Companies | Create infographics People loved writing and reading about the companies that make up the technology world, either as examples to follow or in response to various controversies or product launches. The posts from the last couple years heavily feature companies leading the growth of the early stage ecosystem (Y Combinator, Angellist, A16Z), ones embroiled in controversy on their way to massive growth (Uber & Snapchat) and one-time darlings that have since fallen on harder, or at least less rocketshippy times (Square & Foursquare). Attention Grabbers | Create infographics Want to get into the Mattermark Daily? Your best bet is to go with a ‘How to” headline. The other apparent way in is by being Tren Griffin, whose posts on lessons learned from leaders in Technology (Sheryl Sandberg & Jeff Bezos) and Finance (Warren Buffett & Ray Dalio) offer instructive frameworks for how to make decisions and build better companies which at the end of the day is what most people in the startup universe care about.

Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days. Quick Navigation What does OKR stand for? Where does the OKR framework come from? Benefits of Using OKRs for Startups Common OKR Challenges Common OKR Mistakes When should you start building OKRs? How to Track OKRs Try OKR Templates with Visible What does OKR stand for? In order to move forward at a startup, leaders need to be able to measure and improve upon all aspects of the business. Staying focused on near-term goals while working towards a larger company vision is a surefire way to keep everyone aligned. To help with this, more teams are turning to OKRs (objectives and key results). According to Christina Wodtke, “OKRs comprise an objective—a clearly defined goal—and 3–5 key results—specific measures used to track the achievement of that goal.” Each objective is supported by initiatives — the steps that will help a team achieve the key results. OKRs are made up of 2 major components: Objectives An objective is a clearly defined goal that you would like to achieve by the end of a period. An objective should tie to both the team’s overarching mission or goal as well as the individual’s personal goals. Key Results Key results are the actionable and quantifiable steps you can take to accomplish an objective. Each key result should be measurable and applicable to the objective. Related Resource: Startup Metrics You Need to Monitor Examples of OKRs for Startups As we’ve mentioned, OKRs are widely used so we have plenty of examples to pull on. The most famous one being Google. Google Google didn’t invent OKRs but they have become synonymous with the goal-setting framework. The team at Google runs OKRs like a well-oiled machine. Rick Klau, previously of Google, breaks down how they used OKRs below: “Though the video goes into more detail, here are a few keys to what makes OKRs work at Google: Objectives are ambitious and should feel somewhat uncomfortable Key Results are measurable; they should be easy to grade with a number (at Google we use a 0–1.0 scale to grade each key result at the end of a quarter) OKRs are public; everyone in the company should be able to see what everyone else is working on (and how they did in the past) The “sweet spot” for an OKR grade is .6 — .7; if someone consistently gets 1.0, their OKRs aren’t ambitious enough. Low grades shouldn’t be punished; see them as data to help refine the next quarter’s OKRs.” Swipely In 2013, Swipely was rapidly scaling and their CEO, Angus Davis, had a feeling their culture and alignment was beginning to suffer. Davis turned to OKRs to improve their productivity, culture, and alignment as they went from 30 to 80 employees. Since then, OKRs have become an integral part of communication and culture at Swipely. In an article with First Round Review, Angus Davis shares the example below “Paul, a member of Swipely’s engineering team Objective: Ship [X] feature to increase engagement. Description: Our [X] will allow merchants to access Swipely anywhere, increasing engagement, value, and differentiation which will reduce churn and differentiate our offering with an exciting new value proposition. Alignment: A company-wide objective is to “Become a ‘must-have’ tool merchants love to use,” which has a key result, “Ship [X] product to increase engagement and drive excitement in the sale.” The individual objective to ship [X] is aligned with this company-wide objective.: Key Results: Deliver alpha version to targeted devices for alpha testing feedback from 10 early customers by [date: mm/dd/yyyy]. Provide screenshots/screencast to support marketing launch of the app by [date: mm/dd/yyyy]. Release beta version by [date: mm/dd/yyyy]. Achieve engagement DAU / MAU metric of [X] with beta audience.”\ We love how the team at Swipely encourages individuals to write out their own objective alignment to those of the entire organization. Where does the OKR framework come from? OKRs are generally believed to be introduced by Peter Drucker, the father of modern management, in the 1950s. Since then they’ve been tweaked, renamed, and made popular by other business leaders. Andrew Grove is regarded as the “Father of OKRs” for introducing OKRs during his time at Intel. However, OKRs took the startup world by storm when introduced at Google. John Doerr of Kleiner Perkins (VC firm that invested in Google) took the idea to Larry Page and the Google team and the rest is history. As Larry Page put it, “OKRs have helped lead us to 10x growth, many times over. They’ve helped make our crazily bold mission of ‘organizing the world’s information’ perhaps even achievable. They’ve kept me and the rest of the company on time and on track when it mattered the most.” Benefits of Using OKRs for Startups While you may be thinking to yourself, “OKRs are just another acronym,” they have a proven track record and can genuinely help move your business forward. Business Impact Larry Page credits OKRs for fueling growth at Google. As Peter Drucker put it, “If you can’t measure it, you can’t improve it.” By having a system in place, like OKRs, to measure and track your efforts, you will greatly improve your odds of improving all aspects of your business. Communication Impact When implemented correctly, OKRs can be more than a goal-setting framework for a startup. They have the ability to be a communication tool that can help both individuals and the company move forward. As put on “The Fundamentals” blog, “As a communication tool, OKRs bring two key things to an organization: Easily digestible direction such that every member in the organization understands how they contribute to the mission; aka focus Expectations amongst teams and their individual members; aka accountability” Increased Focus Objectives and key results can bring an increased focus to both individual and company-wide goals and missions. For example, if management and leaders have a clear set of OKRs for the organization and individuals across the company set their own OKRs (that tie to the high-level OKRs) everyone will be working towards the same big goal. Having each individual be able to articulate why their objectives will help towards the greater company mission is a great way to make sure that everyone is focused across the company. Common OKR Challenges Implementing a new goal tracking (and communication) framework is naturally a challenge for any startup. Luckily, OKRs have been implemented by large corporations and small startups so the challenges are predictable and well documented. Lack of Cooperation Naturally implementing a new goal-setting framework will come with some pushback as daily workflows change. The team at FirstRound Review offered a deep dive into how Swipely uses OKRs. Their CEO, Angus Davis, is a major proponent of using OKRs. As they put it, “Davis checks in on his immediate reports every week, and encourages his leadership to do the same. They believe people should be held publicly accountable for failing to regularly update their OKRs, and Davis even shapes his management meetings around them.” Having leadership that believes in OKRs is vital to success, which brings us to our next point… Wrong Leadership Having the leadership in place to set and monitor OKRs is vital. If management and leadership are passively tracking their objectives chances are the rest of the team will follow suit. Leadership can help cement the importance of OKRs by fitting them into daily workflow and conversation or using them as the talking points of team meetings. Misaligned Values At the end of the day, alignment is a major benefit of OKRs. Being able to document and articulate how individual OKRs are aligned with company OKRs is important to implementation and success. In part of having the right leadership in place, they need to be able to set the values and mission of the company so individuals can easily explain (and see) how their objectives are helping the company move forward as a whole. Common OKR Mistakes Building OKRs in a Silo One of the main benefits of OKRs is to eliminate silos in the workplace. In theory, everyone should be tied to the company’s values and missions. However, implementing OKRs incorrectly can still lead to workplace silos. If leaders and managers are only using their input and analysis to build OKRs, individuals will likely suffer and feel isolated. When building OKRs, make sure to incorporate input from everyone in the organization and allow them to set and tweak their own objectives. Key Results are Too Aggressive There is a fine line between making a key result too aggressive and a reasonable stretch goal. As Angus Davis, CEO of Swipely puts it, ““They have to be a stretch.” Most people wouldn’t consider 70% to be a good grade, but for OKRs that’s just about perfect, Davis says. You want your objectives to be ambitious enough to push you beyond your limits. When everyone does this, it forces the tough conversations about what’s truly needed to beat expectations.” However, you do want to make sure that 70% or more is achievable. If individuals are constantly hovering around 50% or less of their key results, it might be time to re-evaluate and set new key results. Inaccurate Tracking Tracking and measuring are vital for implementing OKRs. If you do not have a system in place to track, measure, and improve your existing OKRs, they will not work. On top of having a system in place, you also need to have a source of truth for where the actual data is coming from. For example, if a key result is measuring new leads, you’ll want to make sure it is coming from the correct source. We share best practices below for tracking your OKRs. When should you start building OKRs? Different companies operate their OKR setting and reporting differently. Generally, most companies use a quarterly basis but there are certainly examples of monthly or annual OKR cadences as well. Ultimately it depends on the needs of your business. If it is fast changing and you are rapidly tweaking and changing things, a monthly or quarterly cadence might work best. If things are solidified and you absolutely know what you need to focus on, a longer cadence might work best. How to Track OKRs Being able to measure and track your OKRs is vital to success. Without a system in place to track OKRs, you will never know how to improve. Track in the Open OKRs have the opportunity to be a communication system (on top of a goal-setting system). When tracked in the open, it will ensure that everyone in the organization is rallied around their common goals and objectives. It can be an easy way to demonstrate how everyone is impacting the business as a whole. As the team at Lumeer put it, “Share them with your employees and co-workers so that they can actively participate in achieving them. Make sure that everybody can see the current status and track the OKR.” Check out our Google Sheet & Update Template to share your OKR progress below: When tracking in the open, make sure to be mindful of the individuals. As OKRs are generally stretch goals, some individuals and teams may miss the mark as they should not be punished. Use this chance as an opportunity to improve goal setting in the future. Related Resource: The Startup Metrics Potential Investors Want to See Check-in Often As we mentioned earlier, the likelihood of successfully implementing OKRs is improved when leaders and managers actively engage with teams about their OKRs. If you miss a weekly goal it becomes difficult to achieve your monthly goal which makes it challenging to make up for your quarterly goal. We encourage leaders to check in with their direct reports on a weekly basis to review OKRs. Ideally, this will trickle down throughout the organization. Reevaluate As we mentioned earlier, OKRs are generally stretch goals. If you miss by a wide margin it is important to reevaluate at the end of the period and see (a) where you missed the mark and (b) how you can improve goal setting for the next period. Try OKR Templates with Visible We’ve built a free Google Sheet template to help track your objectives and key results below: Follow the instructions in the first tab of the sheet to start your OKR journey. From here, easily connect the sheet to Visible to automatically chart your key result progress. Check out an example of a Visible Update used to share OKRs here!

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!