Alex Reynolds

Today, GTMfund’s is excited to announce to launch of Operator, its first incubated company. Max Altschuler (founder of GTMfund) teamed up with co-founder Adam M. (design engineer and 0-1 builder) and co-founder Mark Kosoglow (Outreach employee #1 and former SVP of Global Sales) to create Operator.ai alongside an insanely talented team Pleasant Middelhof, Jeremy Jonas, Carl Gunderson. We've entered a period called “The Great Ignore”. Spam and irrelevant, poorly-automated outbound campaigns are running rampant.   Operator gives you an easy-to-use Growth Engineer that allows you to build and enrich lists with accurate data, and run experiments and queries using AI to generate highly targeted outreach.    Check out their website to get updates, early access, and see how they are taking the world back to 2 touches meant to attract buyers into conversations that convert, instead of 20 touches meant to make sure you hit your activity number: https://www.operator.ai/

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Since early 2021, VC quarterly exit values have plummeted to $50B or below, a stark contrast to the six consecutive quarters of $100B+ exits before then. With IPOs dwindling and M&A activity slow, the future of venture industry exits appears uncertain. Will we see a surge in private venture-backed company acquisitions? This could be a crucial and innovative strategy to boost VC exits. Increased private acquisitions might offer a much-needed lifeline, providing a creative solution to the current exit drought in the venture capital market. #venturecapital #inspireglobalventures

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In case you missed it last week, one of my favorite SaaS benchmark reports was released. Thanks to High Alpha and OpenView for the work and having us as a partner! This thing is stuffed full of insights on everything from growth rates, net revenue retention, ARR per FTE, and more. You can't build a great SaaS business without it! https://lnkd.in/ghKT_tBY

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Cap Table guidance from Cake Equity and my former colleague Chris Hoffmann, ECA 🚀🧢 VALUATION & EQUITY MANAGEMENT: Companies should aim for balanced equity plans that are fair yet practical, involving vesting schedules to ensure employees earn their shares. Giving employees sufficient time to exercise options post-vesting can also prevent punitive exercise costs. This approach encourages loyalty and values employee contributions without overwhelming the cap table. HIGH ADMIN DEMAND IN LATER STAGES: In growth phases, especially Series C and D, managing cap tables becomes complex, with frequent hires, exits, and equity grants. Software platforms (e.g., Cake) are essential to keep cap tables organized, as manual systems like Excel can't handle the volume and complexity efficiently. IMPORTANCE OF DAILY & MONTHLY AUDITS: Regular audits are crucial to keep track of terminations, new grants, and board consents. Errors in terminations and grants can lead to costly issues during audits, financial reporting, or funding rounds. SECONDARY TRANSACTIONS & LIQUIDITY OPTIONS: Allowing limited liquidity for employees and early investors, such as through tender offers or company-facilitated secondary transactions, is valuable. These mechanisms offer flexibility without requiring a full exit or IPO, which has become less common due to the IPO market slowdown. CAP TABLE ERRORS CAN BE COSTLY: Historical errors in cap tables can create major headaches. Two examples highlight this:    - In one case, a series D company had to spend $100,000 to $150,000 on cap table corrections, which delayed planned transactions by six months.   - Another company had converted multiple financing rounds incorrectly, requiring a year and a half of back-and-forth with attorneys and investors to correct the errors. These situations emphasize the need to organize and verify cap table data from the outset to avoid costly fixes later. RECOMMENDATIONS FOR FOUNDERS: Early-stage companies should seek expert help in setting up and maintaining cap tables, even if through fractional CFOs or specialized attorneys. Organizing all equity-related documents digitally, using reliable software, and conducting regular audits can save time, money, and stress in the long run.

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Aon published a study this week showing that a Fortune 500 Lyra Health customer saved more than $3 in health care costs for every $1 they spent on Lyra. This is a staggering return on investment. Lyra can deliver the highest value in mental health care because it delivers the best outcomes in the field, having tirelessly invested time and expertise in creating the best care available. This blog is a follow-up from the one I wrote a couple months ago showing that Lyra can also prove sustained savings over four years. Proud of our team for all that they do to help those in need and proving that what’s best for people can also be best for business’ bottom lines. https://bit.ly/4fopHoX 

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PE - How to Use AI to Unlock Growth in Portfolio Companies All PE firms and portfolio companies should be thinking about unlocking GTM and growth via AI (i.e. not merely ChatGPT or other LLMs but actually implementing apps that are "AI Agents"). 1. What are "AI Agents"? - AI agents are autonomous systems powered by ML and natural language processing, designed to perform tasks with minimal human intervention - They can interpret data, determine the workflow & direction (i.e. make decisions), and execute actions across various functions, continuously improving through self-learning 2. Examples of using AI Agents in PE portfolio companies: - For Sales: AI agents handle lead qualification, respond to inquiries, book meetings, and provide personalized product recommendations, ensuring no opportunities are missed - For Marketing: Generate campaign briefs, segment audiences, create tailored content, and analyze performance to optimize outreach efforts - For Customer Success & Support: Provide 24/7 support, resolve customer issues autonomously, escalate complex cases to human agents with full context, and ensure consistent, brand-aligned responses 3. How PE portfolio companies benefit: - Efficiency: Automate repetitive tasks, enabling teams to focus on high-value activities - Scalability: Handle growing customer volumes without increasing headcount - Personalization: Deliver tailored experiences using real-time data insights - $ Cost Savings: Reduce operational costs by streamlining workflows 4. Business Impact for PE Portfolio Companies: - Accelerate GTM Execution: Faster lead conversion, better customer retention, and enhanced marketing ROI - Improve Metrics: Boost Customer NPS, CSAT, and efficiency - Enable Growth: Scale operations seamlessly while improving team productivity. 5. How PE Firms Must Think About Adoption - Define clear portfolio objectives to use AI agents (not just LLMs) - Ensure integration with existing CRM and data systems - Prioritize high-quality data and ongoing performance monitoring - Use AI agents to complement existing GTM teams, focusing them on automation ------------------ #pe #privateequity #investing #ai

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Perfecting your product and GTM strategy are surely important. But Box CEO and co-founder Aaron Levie argues there's one factor that outweighs all others in startup success: recognizing and capitalizing on tech and macro tailwinds. Fighting against them? You're setting yourself up for failure. Our full conversation here: https://lnkd.in/gEAPFR-A

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That planning season is upon us once more - almost like it’s an annual thing :) The more informed you are the more realistic the planning the cycle - especially in a new market transition cycle (here we go again!) Join Randy Wootton and Maxio break down all dimensions of growth and operations with data points across the SaaS market to build a plan rooted in market reality 🔥

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KNOW YOUR REAL BUSINESS ECONOMICS • GAAP Revenue • Cash Flow • Cash • Contribution Margin • CAC • CAC Payback FUNDRAISING: PRESENT & SUBSTANTIATE FINANCIALS • Investor needs to know what your forecasts are • They need to believe them David Weiden, Khosla Ventures

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Inspired by what we’re building at Build Momentum. We realized tech recruiting is broken—non-technical recruiters struggle to find and attract the best talent. That’s why we’ve flipped the script and developed a community-based recruiting approach: a trusted network of elite engineers, embedded within Latam’s top tech communities. The best engineers know the best engineers, and we tap into these deep, authentic connections to deliver top talent faster and with better fit. Want to see how we’re doing it differently? Check out our post

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At the CFA Society Indianapolis Venture Breakfast last week I mentioned how SaaS is losing its VC footing to AI. A couple of folks asked for more information, so I figured I'd share today's PitchBook newsletter on the topic. (https://lnkd.in/eJ285n-a) Amid shifting landscapes in the tech sector, corporate innovation funds and investment dollars are increasingly pivoting towards AI experimentation. As traditional SaaS startups experience a deceleration in revenue growth, the focus is shifting. 💡 As we witness this transition, it's crucial for professionals in tech and investment sectors to understand how AI can drive not only efficiency but also innovation. ❓ Let's discuss how your organizations are adapting to this shift. Are you experimenting with AI? What impacts do you foresee in your industry? #AI #CorporateInnovation #TechTrends #StrategicInvestment

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At Beacon Angels, we see a lot of companies with an interesting idea that talk about their 'market traction' but have yet to achieve meaningful revenue results. We also see portfolio companies returning to us with a need for additional capital to 'pivot'. Those companies are still searching for product-market fit...and it's crucial to their success.

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Rolling into another day of the Primary Summit. Hit me up if we should connect onsite. Kudos to the Primary Ventures team so far, as yesterday’s Pre-Seed Summit was on point. Mar Hershenson, Benjamin Sun, Chris Douvos, Zach Weinberg, and Graham Pingree all dropping helpful nuggets for fund managers. Some paraphrased highlights: - Chris Douvos (AHOY Capital) - Most fund decks are terrible. Start with your people (not your strategy) and know you have about 6 slides of his attention. - Zach Weinberg (Curie.Bio ) - beleives SF’s AI talent is a significant advantage over NY, wouldn’t build AI in NY. Also questions if VC exits can keep up with VC expansion (generally hilarious and smart Twitter follow) - Mar Hershenson (Pear VC) - VC is so much more competitive now. It’s not enough to be an ex-founder with a great network and domain expertise. Have a better “why you are different” or do something else! - Benjamin Sun (Primary Venture Partners)- still sees arbitrage in going long NY venture (vs. SF). Do the work to keep various influential networking nodes aware of what you’re doing and how you think.

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Apply now to get a coveted spot for the Venture Lane B2B Pitch Night Event! 🚀 🥇 On November 19th, Venture Lane | Startup Hub is hosting our exclusive Pitch Night 👉 - a rare opportunity for Boston's B2B tech founders to tune their pitch and get in front of awesome mentors, investors, and industry leaders. ⏰ Apply by November 1st to secure your spot! 📲 Find the application link in the comments below. #B2BTech #Startups #Fundraising #BostonStartups #PitchNight #VentureLaneStudio

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PE - PE Acceleration Toolkit (i.e. not Playbook) What commercial, GTM and growth areas do you cover in your "PE Portfolio Company Toolkit" (i.e. some funds like Vista Equity Partners call it a Playbook but I refer to it as toolkit with the aim of it being a participatory, not a prescriptive playbook)? Some ideas* come to mind - what else? (* i.e. Commercial/GTM/Revenue Growth - not including Product, Engineering, R&D and other functions) 1. Sales Optimization   - Sales Org Structure   - Sales Management Process   - Sales Prospecting & Outbound   - Sales Process Engineering - Pipeline Management - Forecasting & Commit Process - Forecasting Rollups - CEO & Board   - Sales performance metrics and KPIs   - Channel Sales, Partner and alliance programs   - Rev Ops & Sales Enablement   - Sales Quota, Compensation & Incentives   - Sales Tech & Automation 2. Marketing Optimization   - B2B Demand Generation strategy   - Marketing Management - Marketing Process Engineering - Defining Lead Nomenclature - Campaign Management - Strategic Messaging Architecture   - PLG - Product Led Growth   - Digital & Inbound marketing    - Account-based marketing (ABM) - Customer Marketing - Product Marketing - Marketing/Sales Alignment & SLAs   - Marketing Metrics / KPIs   - Marketing Tech & Automation 3. Customer Management, Success and Retention   - Customer onboarding processes   - VOC - collecting and analyzing customer feedback   - Customer Segmentation   - Customer Management Processes   - Proactive customer Engagement   - AM & Expansion Sales   - Renewal strategies   - Customer loyalty strategies   - Customer support optimization   - Customer metrics and KPIs 4. Pricing and Packaging   - Pricing strategies   - Value-based pricing   - Discounting strategies & pricing transparency   - Subscription and usage-based models   - Pricing experimentation and A/B testing   - Competitive pricing analysis 5. Operational Efficiency   - SaaS metrics (CAC, LTV, churn rate, etc.)   - Process automation and workflow optimization 6. Talent & Culture   - Leadership & Management    - Attracting and retaining top talent   - Building a high-performance culture   - Performance Management   - Remote work best practices   - Continuous learning and development 7. Community Building   - Community creation & engagement   - Building an ecosystem around the product   - Customer Advocacy Programs 8. Data and Analytics   - Data-driven decision-making   - Business intelligence (BI) tools and dashboards   - Data governance, security and privacy   - AI applications Other: 9. Product (& GTM Alignment) 10. M&A (Commercial/GTM integration) 11. Finance (Supporting the GTM org) 12. GTM Board Updates & KPIs 13. Etc. ------------------ #pe #privateequity #business

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Hot Take… RIP #PLG, Long Live #SLG But before you throw shade, let me explain… 🔹 There are undoubtedly exceptions, I’m sure many will highlight monday.com, Freshworks, etc. 🔹 PLG works well for low ACV deals with low CAC… think SMB and mid-market customers. Target CAC payback <12 months 🔹 PLG is a fantastic top of funnel marketing channel for enterprise sales ⭐ But for 6-figure enterprise sales, you need enterprise salespeople pressing the flesh with customers

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🚀 Big news: ServiceTitan, a SaaS leader in field service management, has officially filed its S-1 to go public! With $685M in LTM revenue and 24% YoY growth, it’s clear the company has carved out a significant niche in the market. However, their -$183M net loss and growth rate bring challenges. By SaaS standards, ServiceTitan falls short of the Rule of 40—a key metric combining revenue growth and profit margin to evaluate efficiency and scalability. Their score is -2.7, well below the ideal 40%. Excited to see how the market responds—your thoughts? Let's discuss! #IPO #SaaS #Growth #Startups #Tech

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Keen to learn more about the Calybre story? 📖 Check out our new article on TechCentral with the link below. #expectmore #stepahead #reallyawesomedatapeople #data #dataconsulting #dataanalytics #dataengineering #datascience #datastrategy #datagovernance #ai #artificialintelligence #datasecurity

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🚀 Venture debt covenants might sound like a small part of the deal, but they carry huge implications for your startup’s future. 📈 You need to be strategic in your negotiations to avoid any pitfalls down the road. It’s all about setting yourself up for success, not stress. Dive into more details in the original Kruze Consulting post. The link is in the 1st comment. 👇

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