The Best of Tomasz Tunguz
10+ most popular Tomasz Tunguz articles, as voted by our community.
Venture capitalist. Student of Startups. Author of Winning with Data http://amzn.to/1UQAMSr. Author of http://tomtunguz.com
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Five Predictions for 2023 by @ttunguz
Every year I make a list of predictions & score last year’s predictions. Here are my predictions for 2023. ML propels SaaS into a massive second wave that increases workers’ productivity measurably.…
Tomasz Tunguz on Churn
Why Everything I Thought I Knew About Churn Is Wrong • Tomasz Tunguz
Churn is one of the most important metrics for businesses. Churn dictates customer lifetime, lifetime value (CLV), customer acquisition spend and customer success spending. In short, churn is pivotal…
Tomasz Tunguz on Freemium
Dropbox S-1 Analysis - The King of Freemium
Founded in 2007, Dropbox epitomizes the freemium go-to-market. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per…
The Common Characteristics of Successful Freemium Companies
Is there a common characteristic of successful freemium companies? Piotr asked this question earlier this week. This is the framework I’ve seen work well for freemium startups. At its core, freemium…
Tomasz Tunguz on Product Market Fit
8 Customer Discovery Questions to Validate Product Market Fit for Your Startup
When I was a PM at Google, we conducted customer research often to understand our customers’ opinions on AdSense. In 2005, Google, Yahoo and Microsoft were vying to win dominant share of advertising…
What Pricing Implies About Product Market Fit for Startups
The single most important business decision in evaluating a business is pricing power. And if you need a prayer session before raising price, then you’ve got a terrible business –Warren Buffett I read…
Tomasz Tunguz on Saas
Why Churn Rates Can Spike When Your SaaS Startup Experiences Hypergrowth
In Rethinking Customer Churn Rate & LTV/CAC, Thibaud Clement illuminates a counter-intuitive concept about churn. The faster you increase your growth rate (acceleration rate), the higher the churn…
Ten Year's Worth of Learnings About Pricing
Last week, I shared a presentation with an executive team at a large public SaaS company on everything I’ve learned about pricing. Here’s a summary of the frameworks and theory that I’ve aggregated…
Tomasz Tunguz on Sales
How to Structure Your Sales Compensation Plan to Deliberately Undersell by @ttunguz
In Deliberately Underselling as Sales Strategy, I wrote about the importance of sizing contracts below customer needs to ensure customer success. “A key part of the formula: crafting the right account…
Tomasz Tunguz on Team Building
The Part They Don’t Tell You About Startup Team Building
At Google, the director of my team repeated a management mantra to us quite often. “Manage yourself out of a job; make yourself redundant”, she would say. “Empower your people and then get out of the…
Tomasz Tunguz on Venture Capital
PLG & Profitability : More Product Doesn't Necessarily Mean Greater Profits by @ttunguz
Profitability or net income margin has become the most important correlate to public software company valuations. But public companies are less profitable today than a year ago. Surprisingly, PLG…
PLG & Profitability : More Product Doesn't Necessarily Mean Greater Profits by @ttunguz
Profitability or net income margin has become the most important correlate to public software company valuations. But public companies are less profitable today than a year ago. Surprisingly, PLG…
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Why Product Innovation Slows After the Series A
You’ve found product market fit. You’ve hired a team, including some managers. Your initial, small customer base is very happy. You’ve discovered an initial channel of customer acquisition that’s…
Which Categories of Seed Startups are Thriving? Which Aren't?
Which sectors see more startup company formation than others? The answer has changed quite a bit over the last 8 years. Some sectors have hit their apogee and are declining. Others have grown by more…
The SaaS Marketing Scorecard - How Does Your Marketing Operation Rank?
The 9 Disciplines of Great SaaS Companies remains one of the most popular posts on marketing on this blog. It’s a wonderful framework by Bill Macaitis, who was the CMO at Zendesk and Slack. Gabe…
Product Launches Become the Operating Cadence of a Startup
In November, two spectacles occurred. The first is Dreamforce, Salesforce's annual event and the largest software conference in the world. The second is Elon Musk announcing the Tesla Cybertruck.…
As Your Sales Team Scales, Focus on Your Middle
Imagine a hypothetical startup with 10 account executives that is growing quickly. This startup has two AEs that outperform meaningfully, six that are at typical quota attainment, and two that are…
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