There are a *lot* of software shops in the world that would far rather have one more technical dependency than they'd like to pay for one of their 20 engineers to become the company's SPOF expert on the joys of e.g. HTTP file uploads, CSV parsing bugs, PDF generation, etc.
On a serious note, it's interesting to observe that you can build a decent business charging $20 - $50 per month for something that any good developer can set up. This is one of those micro-saas sweet spots between "easy for me to build" and "tedious for others to build"
— Jon Yongfook (@yongfook) September 5, 2019
A consulting shop delivering a $X00k engagement for an internal system, a SaaS company doing something custom for a large client or internally facing or deeply non-core to their business, etc.
More from Patrick McKenzie
More from Startups
1/ I feel like breaking some rules today. Let's get transparent and have an open discussion about management fees in VC to help other emerging managers. The standard fee structure is 2% the size of the fund every year for 10 years or the life of the fund.
#vc #startups #funding
2/ This means if you are an emerging manager raising a micro/nano fund of let's say $10M, then you get $200K a year for operations. That $200K pays for legal, fund admin, accounting, expenses, and your salary. basically that 2% doesn't go very far
#vc #startups #funding
3/ This is in contrast to a larger fund, let's say $100M fund where 2% is $2M a year. This is why some LPs (those who invest in funds) are looking for smaller management fee which is unreasonable for micro funds which many diverse managers are raising
#vc #startups #funding
4/ Now at RareBreed Ventures we structured our fees to be 2.5% for the first 5 years and 1.5% for the last 5 years. This comes out to the standard 2% but front-loaded in earlier years
#vc #startups #funding
5/ This means when we hit our target of $10M (if you want to be an LP our min investment is 10K and you can go to https://t.co/dm6ywrNFnU). We'll have 250K for the first 5 years giving a little more cushion for operations and allowing me to bring on a hire
#vc #startups #funding
#vc #startups #funding
2/ This means if you are an emerging manager raising a micro/nano fund of let's say $10M, then you get $200K a year for operations. That $200K pays for legal, fund admin, accounting, expenses, and your salary. basically that 2% doesn't go very far
#vc #startups #funding
3/ This is in contrast to a larger fund, let's say $100M fund where 2% is $2M a year. This is why some LPs (those who invest in funds) are looking for smaller management fee which is unreasonable for micro funds which many diverse managers are raising
#vc #startups #funding
4/ Now at RareBreed Ventures we structured our fees to be 2.5% for the first 5 years and 1.5% for the last 5 years. This comes out to the standard 2% but front-loaded in earlier years
#vc #startups #funding
5/ This means when we hit our target of $10M (if you want to be an LP our min investment is 10K and you can go to https://t.co/dm6ywrNFnU). We'll have 250K for the first 5 years giving a little more cushion for operations and allowing me to bring on a hire
#vc #startups #funding
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🗓 Release date: October 30, 2018
📝 New Emojis: 158
https://t.co/bx8XjhiCiB
New in iOS 12.1: 🥰 Smiling Face With 3 Hearts https://t.co/6eajdvueip
New in iOS 12.1: 🥵 Hot Face https://t.co/jhTv1elltB
New in iOS 12.1: 🥶 Cold Face https://t.co/EIjyl6yZrF
New in iOS 12.1: 🥳 Partying Face https://t.co/p8FDNEQ3LJ
🗓 Release date: October 30, 2018
📝 New Emojis: 158
https://t.co/bx8XjhiCiB
New in iOS 12.1: 🥰 Smiling Face With 3 Hearts https://t.co/6eajdvueip
New in iOS 12.1: 🥵 Hot Face https://t.co/jhTv1elltB
New in iOS 12.1: 🥶 Cold Face https://t.co/EIjyl6yZrF
New in iOS 12.1: 🥳 Partying Face https://t.co/p8FDNEQ3LJ
Don't look at deadlines negatively! They are a useful tool to measure your performance + stimulate you to do more. You can learn a lot from a single deadline. Did you work too little or too much? Was the goal too ambitious or easy? Apply lessons to the future work. 😉 #MyMindset
I wish I had this... — don't excuse yourself. Forget about what you can't and focus on what you can.
Stop comparing yourself to others, come from the point of what you have, know and have: "I can... so I will do..!" #MyMindset
BTW this was an update of one of the previous tweets. And I'm continuing this thread today!
Do something for the long-term. Everything else is a distraction. 🛑 Nowadays I always check if the thing I'm doing aligns with my long-term plans. If not — that is probably not the best thing to do at the moment. #MyMindset
The only way to get more done is to have less to do. Eliminate your obligations, say "no" to things that are not important, stay minimal in what you do, focus. Being busy is not equal to getting things done. #MyMindset
I wish I had this... — don't excuse yourself. Forget about what you can't and focus on what you can.
Stop comparing yourself to others, come from the point of what you have, know and have: "I can... so I will do..!" #MyMindset
BTW this was an update of one of the previous tweets. And I'm continuing this thread today!
Focus only on positive things! These include what *you* have, know and can do. If you don't have, know or cannot do something either get it or ignore it. Don't think about it and don't use it as an excuse.
— Gleb Sabirzyanov (@zyumbik) October 17, 2018
I've been struggling to follow this principle for a long time. #MyMindset pic.twitter.com/SK5vtwHs3G
Do something for the long-term. Everything else is a distraction. 🛑 Nowadays I always check if the thing I'm doing aligns with my long-term plans. If not — that is probably not the best thing to do at the moment. #MyMindset
The only way to get more done is to have less to do. Eliminate your obligations, say "no" to things that are not important, stay minimal in what you do, focus. Being busy is not equal to getting things done. #MyMindset