SaaS funding topics discussed on this podcast:

01:24   SparkToro Audience Research Software
03:20   His Alternative Funding Structure
04:36   The Benefits of Independent Funding
06:04   – Focus on Customers and Flexibility
07:01   – Balanced Work-Life and Avoiding Long Hours
11:19   – Paying Back Investors and Recycling Capital
15:36   The Unhealthy VC Investor Mindset
31:53   – Challenges and Slower Growth
32:44   – VC Pressure and Growth Targets
33:40   – Internal Hubris and Lack of Focus
45:36   – Difficulties as CEO and Regrets
49:47   Missed Opportunities to Sell Moz
51:17   Challenges of the VC Model
57:34   Advice for Software Founders

Best quote from Rand Fishkin, founder of Moz and CEO of SparkToro

“The reality is that 77 % of venture-invested startups are write-offs for the investors, meaning that they didn’t even return 1X their money. Just .9%—fewer than 1%—of funded companies are the ones who hit the unicorn status that we hear about.

“It sucks for all the employees whose options and hard work don’t return anything. Our decision to take the VC path sucked for our customers, too. Instead of serving them, we were serving investor needs.

“A lot of late-stage capitalist investor-driven behavior is for the benefit of a very small number of extremely wealthy people at the expense of almost everyone and everything else. That sucks, right?

“I don’t think that’s what tech, startups, and the true idea of disruption are about. We need to get back to the roots of what made startups exciting and what entrepreneurship is all about.”