10 Practical Tips for early-stage SaaS Entrepreneurs

@louicop, Point Nine Capital, HEC SEED, April ‘17

Agenda

Short intro

3 tips for SaaS entrepreneurs during the ideation phase

3 tips for SaaS entrepreneurs in their first 6 months

3 tips for SaaS entrepreneurs who start scaling

Disclaimer

Want more info? Check the last slide for additional resources

Agenda

Short intro

3 tips for SaaS entrepreneurs during the ideation phase

3 tips for SaaS entrepreneurs in their first 6 months

3 tips for SaaS entrepreneurs who start scaling

Tech studies

Business studies

VC

Startup

Tech & Business studies

VC

MS in Applied Maths & Computer Science Telecom Paristech 2011-2013 | Paris, FR

Master in Management HEC Paris 2013-2014 | Paris, FR

Analyst Alven Capital 2014-2015 | Paris, FR

Entrepreneur in Residence OptioPay 2015 | Berlin, GER

Master of Science in Management Studies MIT Sloan School of Management 2015-2016 | Cambridge, MA, USA

Associate Point Nine Capital 2016-Present | Berlin, GER & Paris, FR

@louicop

@PointNineCap

SaaS - Data & ML

SaaS - Dev Tools

SaaS - App. Layer

@PointNineCap

Other

Marketplaces

Early-stage (100k-1m), +150m in funds 80 portfolio companies, 20 countries Berlin-based

SaaS?SaaS: Software-as-a-Service

- No installation - Continuous deployment & update - Accessible everywhere

Why it’s great? Why VCs like it?- Zero marginal cost - High margin - Recurring revenues + Up-sell - Global scale from Day 1

Agenda

Short intro

3 tips for SaaS entrepreneurs during the ideation phase

3 tips for SaaS entrepreneurs in their first 6 months

3 tips for SaaS entrepreneurs who start scaling

Become an animal

Pick a problem you are REALLY passionate about

Why now?

Why you? Find your edge

1.

2.

Plan accordingly

How will you finance the business? VC or not VC?

Speed vs. Control?

Market size, competition?

3.

Good tech? Checklist

Don’t underestimate TECH

CTOs are managers

Tech is SaaS’ cornerstone

Agenda

Short intro

3 tips for SaaS entrepreneurs during the ideation phase

3 tips for SaaS entrepreneurs in their first months

3 tips for SaaS entrepreneurs who start scaling

4.

Right tech, your developer brand

Don’t reinvent the wheel

Code scalability

Outsource non-core parts

5.

Don’t go on-premise

Choose your first customers well

Hire AND fire

Do things that DON’T scale

Pricing

Trials > Freemium, Discount > Free

3 Cs, not 1C

6.

Pricing

6.

Pricing

Trials > Freemium, Discount > Free

3 Cs, not 1C

6.

10-15% of the value provided

Agenda

Short intro

3 tips for SaaS entrepreneurs during the ideation phase

3 tips for SaaS entrepreneurs in their first 6 months

3 tips for SaaS entrepreneurs who start scaling

Start writing content early

Don’t waste your money on paid marketing

Make your value proposition crystal clear

Build a world-class product

7.

8.8.

8.8.

…then about LTV

Start thinking about CAC..

Choose your SaaS model

Don’t end up in the SaaS graveyard

8.9.

9.

Focus on the right metrics

1 Role / 1-2 Metrics

1 Stage / 2-3 Metrics

Questions?

10.

Get in touch!

louis@pointninecap.com

@louicop

submit@pointninecap.com

Thank you!

Resources1. Point Nine loves Animal by @chrija: http://christophjanz.blogspot.fr/2012/04/point-nine-loves-animals.html

2.

1. Speed vs. Control by Noah Wasserman, HBS: http://www.hbs.edu/faculty/Publication%20Files/14-090_9901a957-a740-47b2-abce-4f93070d21fe.pdf

2.  SaaS Funding Napkin by @chrija http://christophjanz.blogspot.com/2017/01/saas-funding-napkin-2017-edition.html

3. A Technical Due Diligence Framework for Early Stage Startups by @decodingVC: https://medium.com/point-nine-news/a-technical-due-diligence-framework-

for-early-stage-startups-c24d5408256e

4. How APIs are eating the Product Stack by @clemt : https://medium.com/point-nine-news/how-apis-are-eating-the-product-stack-914a3d6e1216

5.

1. On Hiring and Firing Customers by @DecodingVC: https://medium.com/point-nine-news/on-hiring-and-firing-customers-in-saas-63550687b215

2. Do things that don’t Scale by Paul Graham: http://paulgraham.com/ds.html

6. 7 DOs and DONTs for Seed-stage SaaS Pricing by @DecodingVC: https://medium.com/point-nine-news/7-dos-and-donts-for-seed-stage-saas-

pricing-911acf88ca2

7. What’s the Lead Generation Profile of Fast Growing SaaS by @clemnt: https://medium.com/point-nine-news/whats-the-lead-generation-profile-of-fast-growing-

saas-7df3d8c86e43

8. SaaS: Three Checklists to Choose your Sales Model by @clemnt: https://medium.com/point-nine-news/saas-three-checklists-to-chose-your-sales-

model-17da9680df4b

9. The 8th DO for SaaS startups: Stay on top of your KPIS by @chrija: http://christophjanz.blogspot.com/2013/11/the-8th-do-for-saas-startups-stay-on.html