Paradox of the Power Law in Venture Capital

The most experienced and successful venture capitalists grok the concept of the power law and how it describes the outcomes of startup investments. Simply put, 80% of the returns come from 20% of the deals. The 80-20 rule can be seen in both natural and man-made phenomena such as the size of earthquakes, the size … Read More

Vertical Markets: A Trillion-Dollar Opportunity

According to a Gartner, vertical-specific software is by far the largest category of the software market posting $100B in sales in 2013 and accounting for 28% of the market. The second biggest category, operating systems, holds only 8% of the market, ahead of database management systems, ERP, middleware and security. $100B is a surprisingly large … Read More

The Do-It-For-Me Revolution

This article was originally published by TechCrunch April 19, 2015. Now that we are a 15 years into the software-as-a-service (SaaS) revolution, many of us in Silicon Valley are thinking hard about the next big wave in B2B software. We’re excited about many themes, including mobile enterprise, vertical SaaS and predictive analytics, but one less-obvious trend … Read More

Global Competition

Global Competition After this week’s massive, record breaking IPO of Alibaba, much of the attention will be on China. However, as a venture capitalist based in Silicon Valley, the IPO is yet another reminder that creativity and innovation in the technology industry will no longer be dominated by Silicon Valley or even U.S. based companies. … Read More

Zendesk vs Why investors are split

The original version of this post was published on on May 19 2014 Contrary to what some might think, the two companies are completely different. Both are growing, but Zendesk is on a credible path to profitability and growth. Shortly after filed for its IPO last month, Zendesk filed to go public also. TechCrunch concluded that the “Zendesk IPO bears striking … Read More

The First Decade of SaaS IPOs (2004-2013)

It’s been almost 10 years since’s IPO on June 23, 2004. Earlier this year we decided to take a look at every SaaS IPO since then, in what we considered to be the first decade of IPOs in a new era of enterprise software. So far, there have been 40 IPOs, most of which were … Read More