Tod Sacertodi sold Brightroll to Yahoo for $640M with 8 years of hard work. Started 2006, sold 2014, $640M. Bullet points from a talk he gave at Yahoo, where he shares his learnings:
- (#1) If you invested 100k in A round, you’d make 6M in returns.
- Know when to overspend. It’s not a linear curve. Pay above market to the "top of the industry” execs / rockstars. Lesson: You can’t overspend on great people.
- Start with compensating Talent Acquisition above market. Top dollar for top candidates.
- Don't innovate on non core biz stuff. Focus energy on doing few things the best in the industry
- Focus on edge cases as they raise the bar for the core as well.
- "Be and effective a**hole in your industry"
- Raise money from people who know and have low chance of f-up. Leads to lower valuation, but clean cap table pays off. “10% of something is worth more than 50% of nothing"
- Create a ‘Tribe’. Successful companies are not a family. They are small, trusting Tribes going after a shared vision. Let people be Tribal.
- "Post-traumatic growth is positive psychological state experienced as a result of adversity and other challenges in order to rise to a higher level of functioning.”
- Customers share a lot of competitive intel — “every edge of company is a touchpoint of information”
Medium Link: https://medium.com/@todsacerdoti/0-to-640m-non-obvious-lessons-learned-at-brightroll-b6b3eb4086ac#.7jnpdoq7x