Connect with us

Startups

How OneDayOnly grew its eCommerce business

Published

on

SaaS

How much to pay yourself as a SaaS founder

Published

on

“If you’re the founder of a seed-stage [company and] you’re worried about your electricity staying on this month, then your salary is too low. If you’re saving $10,000/mo, then your salary is probably higher than necessary,” investor Leo Polovets wrote in a Twitter thread.

Ultimately, a good test is to ask how you’ll feel if your startup fails: Will you wonder if your salary contributed to its fall? Or will you regret sacrificing more than you can recover?

This tweet is just one of many in a now burgeoning conversation about how founder pay needs to change. The startup and investor communities are beginning to realize that many founders can’t go without pay for months.

Founders of SaaS startups are at an advantage in this scenario as the sector now has many companies generating revenue almost from day one, sometimes without needing to raise any funding at all.

However, the success still doesn’t tell founders how much to pay themselves, or what others are doing. To help with this, we’ve gathered insights from founders and VCs and narrowed down the most important factors and benchmarks to guide your decision.

A framework for compensation

Founder compensation is often referred to as a “founder salary,” but anchoring the conversation around the salary framework can create the wrong expectation. For example, you could try to establish a correlation between what you plan to pay yourself and your past or current value on the job market. Instead, the data we gathered indicates that founders typically take a pay cut from their previous salaries.

Chris Sosnowski is an interesting example: Before he “took the plunge” at the beginning of 2020 to work full time on his water data management startup Waterly, he used to earn “well over” $100,000. But he says his previous salary wasn’t a key factor when he set his compensation. “I decided to pay myself based on what I thought it would take to keep the company running,” he wrote to TechCrunch.

That brings to mind deferred compensation, which will be familiar to anyone who owns equity. Having put his own money into the company and owning the majority of it, Sosnowski is set to be compensated for his efforts if all goes well. “For the record, I do hope to pay myself back [a] salary for the year or so [it is] reduced like this,” he said.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/06/22/how-much-to-pay-yourself-as-a-saas-founder/

Continue Reading

Fintech

Australian fintech Zeller lands $50M AUD led by Spark Capital at a $400M AUD valuation

Published

on

Zeller, a Melbourne-based fintech founded by former Square executives to serve small- to mid-sized businesses, has raised $50 million AUD (about $37.5 million USD) led by Spark Capital, the investment firm whose portfolio also includes Twitter, Slack and Coinbase. Zeller’s valuation is now $400 million AUD (about $301 million USD).

The funding included participation from returning investors Square Peg, Apex Capital Partners and Addition, and brings Zeller’s total raised in under a year to $81 million AUD. This amount includes a pre-launch Series A led by Addition, the investment firm started by Lee Fixel, and seed funding.

Zeller was founded last year by Ben Pfisterer, Square’s former Asia Pacific and Australia head, and Dominic Yap, the fintech’s former strategy and growth lead. The company launched its first products for small businesses on May 4, including EFTPOS (electronic funds transfer at point of sale) terminals, business accounts and cards.

The company says more than 1,500 Australian businesses signed up in the month after its launch, and weekly payment volume has been growing 200%. About 80% of businesses who started using Zeller switched from Australia’s four biggest banks, citing their desire for lower fees and better customer support.

Zeller’s new funding will be used to grow its research and engineering hub, including filling 18 new engineering roles that will support Zeller’s plan to become a fully-regulated business bank.

In a press statement, Spark Capital investor James Kuklinski said, “From our first meeting with Ben, we knew we wanted to be a part of Zeller. Australia’s business banking landscape is dominated by a small group of incumbents, and is ripe for disruption through simpler, more transparent pricing, best-in-class technology and better customer service.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/06/22/australian-fintech-zeller-lands-50m-aud-led-by-spark-capital-at-a-400m-aud-valuation/

Continue Reading

Startups

A rewards program for your rent payments? Meet Bilt

Published

on

Kairos, the startup studio led by Ankur Jain, is launching a new brand today called Bilt Rewards. Bilt is a rewards program that lets renters earn each time they make a rent payment.

The company is funded by Kairos, which is the studio that is also responsible for brands like Rhino, Alloy, and Little Spoon.

Bilt has two main pieces, a rewards platform and a credit card, powered by Mastercard.

On the rewards side, Bilt has partnered with estate owners and property managers including the Blackstone Group, The Related Companies and Equity Residential. Folks who rent with these entities can now earn rewards each time they pay their rent, with the opportunity to earn even more rewards for things like lease renewals or lease signing bonuses.

The co-branded Bilt Mastercard credit card allows renters at those properties, or any other renter, to pay their rent with the credit card. As a renter myself, and as one that is still forced to pay by check via snail mail, this is a welcome offering.

Folks who use the Bilt Mastercard will earn 2x points on rent payments and one point per dollar spent on the card elsewhere.

These points, whether earned through spending on the card or by paying rent at Bilt-partnered properties, can be used toward travel with airlines and hotels, as well as other perks like group fitness classes. But perhaps the most significant option for spending points is to use them toward a mortgage payment.

Bilt worked with regulators, as well as Fannie Mae and the Department of Housing and Urban Development, to gain approval for using rewards points toward a mortgage. So not only can people use their rewards points toward their down payment on a home, but folks using the Bilt Mastercard can also build their credit score and earn rewards at the same time, bringing down the rates on their mortgage.

On the revenue side, Bilt takes a cut of the transaction fee alongside Mastercard for purchases made through the Bilt credit card. The startup also generates revenue by charging property managers for the points they distribute to their tenants.

“Three years ago, if you asked us if we could bring together an alliance of property owners to work together under one unified rewards program, it would have been hard to imagine,” said Jain. “If you think about getting payment networks to collaborate on a credit card or fees on rent, most people would have said that’s not possible. Getting regulatory approval from the U.S. government was a huge hurdle we had to overcome. Building out every airline and hotel partnership was huge. That’s why it’s taken three years. This has been the hardest project we’ve worked on.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/06/22/a-rewards-program-for-your-rent-payments-meet-bilt/

Continue Reading

Startups

G2 raises $157M for its software review service

Published

on

This morning G2, a company that provides an online software review and information database, announced that it has raised a $157 million Series D. Per a release the company shared with TechCrunch in advance of its news, G2 is now worth more than $1 billion, making it a unicorn in modern parlance.

Permira led the round via its growth fund, while prior venture capital firms IVP, Emergence, and Accel also contributed. The investment also included capital from LinkedIn, which previously invested, and corporate venture dollars from both HubSpot and Salesforce.

The round caught our eye not due to its scale — nine-figure rounds are a daily occurrence in today’s super-heated venture capital market — but due to the interesting position that G2 and its rivals occupy in the technology space. They provide a guide of sorts to various software niches, not only exposing a number of competing services in a single space, but also some signal about what service might be a good pick.

For the immensely deep and immensely wide software market, offering potential buying entities — all companies, in other words — directions when it comes to software buying decisions is a position of power. And one that comes with a unique set of challenges.

G2 cannot simply provide lists of competing software products and user reviews. It needs to command a position of trust; if its users are worried that commercial interests are clouding its ratings and lists, the company’s core product could be compromised.

So, that’s what TechCrunch asked G2 CEO Godard Abel to discuss.

In response to our question regarding balancing G2’s commercial interests and review purity, Abel said that “whether a software vendor pays G2 or not has no impact on their rating on G2 and their placement in our category rankings which are 100% algorithmic and data-driven.” That’s a good start.

Abel went on to say that G2 verifies all reviews, checks the “business identity” of reviewers via their online profiles, and uses “NLP and AI to score and validate all reviews including preventing any reviews by competitors or employees of a vendor.” And, the CEO added, G2 has humans in the loop for verification as well.

The process seems reasonable, but the company and its rivals like Capterra will need to manage market trust as they continue to scale.

On that front, the CEO expanded a bit on the growth metrics that it disclosed as part of its release. In that document the company said that it added “700 paying customers for its Marketing Solutions in the past 12 months.” TechCrunch wanted to know what percent growth that number represented, and what portion of G2’s revenues come from that particular business line.

Per Abel, the customer number represented a 45% growth rate, and that that “piece of [its] business represents the bulk of [its] current revenue.”

Parsing that a little, seeing 45% customer growth in a majority revenue line implies healthy growth. We lack several data points that we’d need to convert that customer growth figure into revenue expansion itself, sadly.

With lots of new cash in the bank, G2 has plenty of space to keep growing. Its CEO highlighted international investment as a place where he intends to invest, citing “exceptionally strong growth across Europe and Asia as our international software buyer traffic and revenue have been nearly doubling.” And Abel said that his company will also “accelerate” its coverage of the software market with its new capital, along with investments into data work to improve G2’s recommendation engine.

G2 itself is now valued like a company that’s on an IPO path, which means that the standards we’ll hold it to have reached their zenith.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/06/22/g2-raises-157m-for-its-software-review-service/

Continue Reading
Esports3 days ago

Select Smart Genshin Impact: How to Make the Personality Quiz Work

Blockchain3 days ago

Bitmain Released New Mining Machines For DOGE And LTC

Esports5 days ago

How to complete Path to Glory Update SBC in FIFA 21 Ultimate Team

Energy5 days ago

IT-OT Convergence Steers the Global Industry 4.0 Market for Mechanical Test Applications towards Prosperity

Esports5 days ago

How to Get the Valorant ‘Give Back’ Skin Bundle

Blockchain4 days ago

Digital Renminbi and Cash Exchange Service ATMs Launch in Beijing

Blockchain5 days ago

Why is 25th June critical for Ethereum?

Aviation4 days ago

Southwest celebrates 50 Years with a new “Freedom One” logo jet on N500WR

Start Ups4 days ago

Zenefits Payroll Glitch Results In Delayed Paychecks For Small-Business Employees

Blockchain4 days ago

Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist

Aviation4 days ago

Delta Air Lines Drops Cape Town With Nonstop Johannesburg A350 Flights

AR/VR5 days ago

Larcenauts Review-In-Progress: A Rich VR Shooter With Room To Improve

Blockchain4 days ago

Blockchain Intelligence Firm TRM Labs Secures $14 Million in Funding

Blockchain4 days ago

Index Publisher MSCI Considers Launching Crypto Indexes

Esports4 days ago

All Characters, Skills, and Abilities in Naraka: Bladepoint

Blockchain4 days ago

Paraguay Follows El Salvador In Tabling Bitcoin Bill, The Crypto Revolution Is Happening

Blockchain4 days ago

Paraguayan Official Confirms: In July We Legislate Bitcoin

Energy1 day ago

Inna Braverman, Founder and CEO of Eco Wave Power Will be Speaking at the 2021 Qatar Economic Forum, Powered by Bloomberg

Blockchain4 days ago

U.K’s crypto-users are growing in number, but do they even understand the asset class?

Aviation4 days ago

Breaking: British Airways 787 Suffers Nose Gear Collapse

Trending