The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: From Unsexy Startup to $1.8BN Acquisition | Why VCs and Founders are Fundamentally Misaligned | Why Valuations and Fundraising are BS | Lessons from Josh Kushner and Marc Andreesen | Zac Bookman, OpenGov
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Dec 6, 2024 Zac Bookman, Co-founder and CEO of OpenGov, shares insights from his journey of building a GovTech powerhouse acquired for $1.8 billion. He discusses the complexities of enterprise sales and pricing strategies, stressing the importance of high gross retention in SaaS businesses. Zac reveals why founders and investors often misalign and how that can impact M&A decisions. He critiques inflated valuations in venture capital and reflects on the emotional journey of selling a company, illustrating the balance between innovation and financial health.
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SaaS Pricing Strategy
- Avoid pricing SaaS products between $5,000 and $25,000.
- Enterprise sales motions are expensive, requiring high ASPs to justify the cost.
Retention over Growth
- Prioritize high gross retention in enterprise SaaS.
- Durable growth, even at lower percentages, is more valuable than rapid, unsustainable growth.
Founder-VC Alignment
- Venture capital requires outsized returns, prioritizing high-growth companies.
- Founders and VCs have inherent conflicts due to misaligned goals and incentives.
