Entries by Paolo DiVincenzo

Basis State August 2019 Updates

Here are a few recent recent developments at Basis State: NEW COMPANIES ONBOARDED We recently onboarded two companies. 1. Adtech SaaS reporting tool for web publishers and intermediaries (SSPs). It harmonizes reporting between 17 of the major ad exchanges to give a consolidated view of daily ad revenue. The tool could be an interesting strategic […]

Founder Passion Versus Investor Fiduciary

I frequently hear investors say they are looking for passionate founders. I think in this instance “passionate” is just a proxy for “driven.” Driven founders work hard, and push through adversity to get to success. Really, investors are not interested in just any flavor of passion. It’s important to consider whether yours is the type […]

Sub-Scale SaaS Valuation Model 2: Access a New Type of Customer

Companies acquire sub-scale SaaS for three reasons: (1) to accelerate a roadmap, (2) to access a new type of customer, (3) to avail a new product to existing customers. This article focuses on #2. Determining your value when you are being acquired for your customers (or types of customers) depends on the market you’re addressing, […]

Sub-Scale SaaS Valuation Model 1: Accelerate a Roadmap

When acquirers buy a sub-scale SaaS business, it’s rarely for the business’s revenue. The revenue-based valuation rules that apply for scaled SaaS companies do not apply sub-scale. Instead, sub-scale SaaS valuation is based on the particular reason the target is receiving interest, and this can vary. As I’ve mentioned in previous articles, there are three […]

Study the Wall Before You Focus on the Road

“When they teach you how to drive a racecar, they tell you to focus on the road when you go around a turn. They tell you that because if you focus on the wall, then you will drive straight into the wall.”    – Ben Horowitz Ben Horowitz has a great point. There are a myriad of pitfalls […]

The VC-backed Bullseye, and What Happens When You Miss

Building a successful VC-backed company requires getting everything just right. Getting it right means hitting a bullseye where three factors intersect: Founder Competency, Market Reality, and Investor Approach. When you hit that intersection, you have a big exit and sail away to your private island. When you miss, you either hire or negotiate, depending on […]

Yes, You Can Make Your Feature a Successful Business

“Sounds like a feature, not a product.” Anyone who has been on the VC trail a few times has probably heard these words. It’s one of the most common reasons for VCs to pass on your business. It makes sense. Features don’t get to VC scale, and they can easily get knocked-off by large platforms. […]

The Destruction of Perfectly Good Tech

Startup failures send perfectly good tech to the scrap heap. That’s nothing new. What is new is that more and better tech is getting abandoned earlier. It’s an inefficiency created by our convergence around a common playbook. It starts with taking the path down a very narrow funnel The standard startup playbook goes something like […]