Show Notes
In today’s episode of How We Got There (which was recorded earlier this year, before the downturn), I talk with Doug Landis, who is a Growth Partner at Emergence Capital. Doug spent some time at Salesforce and Box before moving into his current role in helping Emergence’s portfolio companies with go-to-market assistance. He was working in the early days of sales enablement and now recommends hiring rev ops and sales enablement roles earlier than you think, even at Series A, to drive productivity in the sales organization.
Emergence Capital is a venture capital firm that invests in B2B Enterprise SaaS businesses for their Series A and B funding rounds. They’ve invested in Veeva, Steelbrick, Box, and many more household names in the Salesforce ecosystem.
The biggest challenge every early stage company will face is pipeline and that can be helped by hiring Marketing leadership before sales leadership, because sales professionals won’t enjoy being full cycle for very long. His message to early stage founders is to become obsessed with pipeline. In deals over $10k, there are normally 8-10 people in the buying decision even if there is a single major person that your solution will help. A good benchmark for any AE is they should be generating ~20% of their own pipeline.
Key metrics to look at are by account, how many contacts are on each account and then dive deeper into touches by contact to know depth of engagement in a given opportunity. Looking at conversion rates can help you zero in on gtm priorities to work on.
Technical founders make mistakes by hiring a salesperson too early because you need to learn how to sell early on. A good target is for you to sell the first $1M in ARR and collect insane insights along the way for your product while capturing referrals. Hiring customer success people early on the other hand is wise because your first few customers need to be successful, you can’t afford to churn your first customers (unless you learn they aren’t a good fit for where you’re going).
Before starting the process of fundraising, you need to know your data inside and out beyond your pitch deck that includes a strong “why”. Include customer stories to help tell your story. It’s important to make a thoughtful list of potential investors that will be good long-term partners with you who will offer you the right level of engagement to guide you on the things you might be missing.
For the ecosystem specific advice, he shares a word of caution for ISVs in getting Salesforce Ventures to participate in your round. Doug’s view is when you take Salesforce Ventures money…..and it’s cause for pause. If they build something like what you’re offering, you could be in big trouble. He share the story of Steelbrick (Emergence was the lead investor here) and Apttus and how Salesforce leveraged their relationship to strong arm Steelbrick during the acquisition.
Here’s a closer look at the episode:
1:37 How did you find your way into the ecosystem?
5:13 Sales enablement
9:55 Who is Emergence and what’s your role there?
14:16 What are some elements that make a great go to market approach in a series A or B company?
22:07 What’s the biggest mistake you see technical founders make before they hire professional salespeople?
25:53 So founders in the ecosystem, if they’re considering raising institutional capital, what should they know before starting the process?
34:15 What are you most proud of in your career?
36:10 The final three
Doug’s Linkedin: https://www.linkedin.com/in/douglandis/
Emergence Capital’s Website: https://www.emcap.com/
Emergence Capital’s Linkedin: https://www.linkedin.com/company/emergence-capital-partners/
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You’ve gotta be boots on the ground, doing it yourself first before you build out a team to help you sell. He needed to be the one selling, partnering, and figuring out the messaging before scaling the team.
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