Soundcloud’s losses: How much is too much?

soundcloud-loss-millions-future-in-danger

As a passionate and regular Soundcloud user I was saddened (but not at all surprised) to learn that the music streaming network is in financial difficulty.

Apparently, they have lost over $70M in the last 2 years alone. To date, they have raised over $150M.¬†According to this leaked document, in 2014 they lost $ 2.25 for every $1 in revenue. Continue reading Soundcloud’s losses: How much is too much?

Why I hate White Labeling for Startups

As an early stage investor, I meet MANY startups. Very often when I am talking to them about business model, growth plans, etc – they bring up white labeling. For many reasons, I think this is a bad idea for startups.

Other than a few select startups that start out with the sole intention of building a white label business (Cakemail has done this for email marketing software as one example), the vast majority of startups don’t think of white label on day one. They think about it when things are not going as well as planned in their core business and/ or they are approach and react to inbound interest vs looking for white label partners.

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The two axes of pricing SaaS

When we talk about how to price a software service most often the conversation turns to how much the end user pays. How expensive is it per month? How does that compare to alternatives? Is this value for money? What does the price say about our positioning (bargain vs. premium, etc)?

These are all important questions, but there is another equally important axis in your pricing decision – customer acquisition cost. You need to price your product or service high enough that you can afford to spend $ to acquire customers.

Continue reading The two axes of pricing SaaS