Soundcloud’s losses: How much is too much?


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?

Saas Math Case Study: Dropbox

I’m guessing that most everyone who reads this blog uses Dropbox. The four year old company has over 50M users and adds a new user every second! It can be dangerous to use such run away successes as lessons when building your own startup. After all, most startups never achieve this level of success.

Still, a recent article in Forbes Magazine shed some light on their numbers and their success. If nothing else, these should serve as high level targets showing what is possible with a freemium SaaS company.

Continue reading Saas Math Case Study: Dropbox

SaaS pricing: Push your base version

I see many startups that take a page from the smart folks at 37 Signals. They build their sites / apps in rails, they use similar design / UI principles and even copy their mode of presenting 4 or 5 pricing options. Often, and coincidentally, just like 37 Signals, these pricing options show the 2nd or 3rd most expensive pricing plan as the “most popular”.  When I see that, something smells fishy to me.

Continue reading SaaS pricing: Push your base version