Jason Lemkin has a unique approach to deciding which enterprise SaaS startup to fund.
As a former SaaS startup founder, Jason Lemkin uses his own experience as a reference point to judge SaaS startup opportunities. This lets him simplify the evaluation criteria down to a couple of essentials.
I just look for two-and-a-half things. Because I’ve been a SaaS founder myself, a little different, a little quirky, I look for founders that are better than me, adjusted for time. They don’t know as much as you know I do or we do, but adjusted for time, they’re better than me. I look for better use of economics than I had, because if you can sell something for $10,000 a year, for the same work as for 1000, it’s just 10 times easier. And then I look for something that’s vaguely in a good space. Now a good space changes these days, but you do ideally want to have something or someone else who can also write a check further down the road, so, great founders, better than average in economics, and at least a space that in a year or two may be interesting.
Published Date: Jul 31, 2015
Author: Michael Krigsman
Episode ID: 230