SaaStr Annual 2024: 5 Key Steps to Building that the Best Founders Get Right with M13

SaaStr Annual 2024: 5 Key Steps to Building that the Best Founders Get Right with M13

1. 5 Key Steps to Building that the Best Founders Get Right Karl Alomar Managing Partner M13

2. Karl Alomar Current Managing Partner, M13 Former COO, Digital Ocean Former Co-founder + CEO, China Export Finance Former Co-founder + CEO, Clearview Networks 5 Key Steps to Building that the Best Founders Get Right

3. Great new SaaS companies are not built on a lucky draw - they are methodically and strategically crafted, but it's not as complicated as it sounds. Let's discuss the strategic building blocks to establish a winner.

4. Why?! #1 - Category and Competition Where you want to be COMPETITION Commodity, pre-baked returns Waste of time, waste of idea Exciting category, highly competitive Greenfield CATEGORY POTENTIAL Potential, but needs significant competitive advantage

5. #2 - Building a Startup Team Generalist skill sets Founder mindset, scrappy Ad-Hoc organization, independent Broad skills to cover needs Specialist leadership roles Long term & scalable processes Structured organization Focused skill sets to optimize performance Pre Series A Team Post Series A Team

6. Generalist skill sets Founder mindset, scrappy Ad-Hoc organization, independent Broad skills to cover needs Specialist leadership roles Long term & scalable processes Structured organization Focused skill sets to optimize performance Pre Series A Team Post Series A Team #2 - Building a Startup Team

7. #3 - Product Evolution Lean Build Identify ICP Validate demand Prototype Build MVP Launch, test, iterate Early adopter traction Product feedback loop Optimize Product-Market Fit GTM/ICP fit Expand product scope Revalidate PMF at scale Validate econ at scale Pre-Seed Seed Series A 💡Build & Validate MVP 💡Do NOT build product yet 💡Scale with Product Mkt Fit

8. Short term impact Highly targeted to ICP Test and Iterate to minimize CAC At optimal CAC check at scale Stick to targeted channels that have good ROI (ie LTV:CAC) Inside Sales best for early rev Self serve best for scale Self serve driven by product Often includes Freemium/Trial High cost of scaling inside sales Need strong contribution margin Long term strategy Seed content into market Focused towards ICP Drive SEO through content Long term vs short term strategy Content Performance Marketing Inside Sales v. Self Service #4 - Growth, Build an Engine

9. #4 - Growth, Build an Engine Leverage 3rd party distribution Must be win-win for partner Requires key oversight Motivate partner sales org Own customer relationship Often connected with self serve Lowers barrier to entry Fills top of funnel to expand Monitor NRR for expansion Sales vs Customer Success Land & Expand Partner Channels

10. #4 - Growth, Build an Engine Short term impact Highly targeted to ICP Test and Iterate to minimize CAC At optimal CAC check at scale Stick to targeted channels that have good ROI (ie LTV:CAC) Inside Sales best for early rev Self serve best for scale Self serve driven by product Often includes Freemium/Trial High cost of scaling inside sales Need strong contribution margin Long term strategy Seed content into market Focused towards ICP Drive SEO through content Long term vs short term strategy Content Performance Marketing Inside Sales v. Self Service

11. Leverage 3rd party distribution Must be win-win for partner Requires key oversight Motivate partner sales org Own customer relationship #4 - Growth, Build an Engine Often connected with self serve Lowers barrier to entry Fills top of funnel to expand Monitor NRR for expansion Sales vs Customer Success Land & Expand Partner Channels

12. #5 - Fundraising, What Investors Look Big idea, big space Strong founding team Quality product / traction Good design partners VC Interest always helps Product Market Fit (PMF) Working GTM motion Strong engagement Validated ICP/TAM VC interest always helps PMF scales with reach Good econ for scale Self propagating GTM Growth formula proven Investors interest always helps Pre-Seed/Seed Series A Growth

13. BONUS ROUND

14. Ground up build AI at the product core In-house built AI models Core product is not AI Features powered by AI Can be combination of “true” AI or automation masquerading as AI AI Native AI incorporated post build Harder than ground up Product extension to address tech evolution or differentiation AI Powered AI Conversion The Many Flavors of AI-Startups