What’s the best way to sell the right amount of equity in your fundraising round?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
Jason M. Lemkin’s answer to For a new startup, what would be the ‘acceptable’ equity percentage given to VC (Series A financing)? – Quora

Typically, Seed Stage VCs will want to write smaller checks to achieve at least a 10% target ownership. Sometimes more. If you need more money, they’ll often want to bring in a second Seed Fund to buy a second 10%. Typically, Larger Funds will want to own as much as 25%. Themselves. And they’ll write a larger check to get it, and sometimes, pay a higher per share price.

What’s the best way to sell your company?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
Bad reasons to sell your startup | A Founder’s Notebook

Do not sell if you are at scale and have a committed team. Do not sell because of the competition, unless they are truly decelerating you and you can’t stop them. Do not sell because you are tired.

What’s the best way to manage customer feedback?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
What are the potential dangers in using a Freemium model? – Quora

The less the customer pays, the more feedback they provide, and the less engaged they are (making their feedback worse). The best feedback and least noisy feedback is from your most engaged (and generally most profitable customers). The biggest risk of all is listening to all the wants/wishes/complaints from the free and low-value converts and potential converts.

What’s the best way to improve retention?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
How to think about churn | A Founder’s Notebook

You’re going to end up with an organic churn rate that is inherent to your product. The most important thing is measure it and then drive it down. That’s what I did. We set a goal at Echosign to decrease churn 20% year over year. You need to measure it and force the team to own a metric.

What’s the best way to hire an executive?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
10 Great Questions to Ask a VP Sales During an Interview | SaaStr

1. How big a team do you think we need right now, given what you know? (If he/she can’t answer — right or wrong — pass). 2. What deal sizes have you sold to, on average and range? (If it’s not a similar fit to you, pass. If he/she can’t answer fluidly, pass). 3. Tell me about the teams you’ve directly managed, and how you built them. (If he/she can’t describe how they built a team — pass). 4. What sales tools have you used and what works for you?… (read more)

What’s the best way to get more customers for your product?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
Jason Lemkin: The Right Metrics For Your SaaS Startup | InsightSquared

Overinvest in customer success – that’s my #1 growth hack. That doesn’t get you to your first 10 or 20 or 100 customers, but that’s the best way to turn those 100 customers into 1,000.

What’s the best way to evaluate a potential hire?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
From the perspective of a CEO, what are the most underrated skills most employees lack? – Quora

Ownership. Most employees just can’t be owners. This may not matter at Adobe, or Google, or wherever. But up until you have 500 employees or so, the CEO is looking for owners. People that don’t just play a role, but truly own something, that make 100% sure it comes in ahead of time and ahead of expectations — with as little drama as possible.

What’s the best way to do sales?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
Jason Lemkin: The Right Metrics For Your SaaS Startup | InsightSquared

There are two metrics aren’t discussed enough. The first is lead velocity rate. What rate are your qualified leads growing month over month? The second metric will help founders get from initial traction to scale: understanding revenue per lead and how that works across your company. Once you have a repeatable set of leads and lead velocity, you want to drive up the revenue per lead.

What’s the best way to create a virality strategy?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
The Low Viral Coefficient of SaaS, And Why That’s Just Fine | SaaStr

At EchoSign, from the date of first contract send to New Signer, to how long it took for that new account to convert to paid, it took 8 months, on average. For the first year, that was incredibly painful. Because we had so few customers in the early days, that even after 8 months, they could only beget us a handful. It really wasn’t until the end of Year 2 that viral really kicked in. That’s just the math of a low viral coefficient