Lessons from OpenGov: $1.8BN & VC Misalignment

"The earlier, the better... Getting to a suite or a suite of suites is the way to do it."

• Zach believes that offering multiple products enhances ASPs.
• Building a suite addresses more customer pain points.
• Founders can drive growth by strategically expanding product lines.

"I made a mistake on that. I went remote, virtual, and distributed... It's not even close."

• Zach acknowledges that in-person collaboration boosted productivity.
• Remote work led to disconnection and reduced engagement.
• Founders should consider the benefits of in-office presence for their teams.

"Every step we took to shrink the TAM and to get more focused... our growth rate ticked up."

• Zach found that focusing on a smaller market improved ROI.
• Shrinking the TAM allowed for better targeting and efficiency.
• Startups may benefit from concentrating on a specific niche.

"I'd be more decisive... It would move at a tempo that is a different tempo than I was moving."

• Zach regrets not making faster decisions earlier.
• Being more decisive could have saved years.
• Founders should act swiftly on personnel, product, and strategy decisions.

"I've changed my mind on up and comers... There's value in promoting from within."

• Zach shifted towards valuing internal talent.
• Growth-minded employees drive better results.
• Founders should nurture and promote internal team members.

"We are conflicted severely. Your business runs on a power law... It doesn't do much for Andreessen Horowitz."

• Zach highlights that VCs seek outsized returns from few hits.
• Founders may have different success metrics.
• Recognizing these conflicts helps navigate VC relationships better.

"We don't even do that. We buy for product quality and adjacency, and it jumpstarts the innovation."

• Zach uses acquisitions to rapidly enter new product areas.
• Acquiring companies with PMF saves time.
• Founders can consider M&A to enhance product suites effectively.

"One of the many mistakes I made was to overspend on sales and marketing before we had the product... it's very dangerous."

• Zach realized that scaling sales without PMF led to cash burn.
• Founders should ensure strong PMF before ramping up sales spending.
• Validating the product thoroughly saves time and resources.

"Every step we took to shrink the product-market fit segmentation and to get more focused on the ICP, the ideal customer profile, our growth rate ticked up."

• Zach narrowed the ICP to focus on specific customers.
• By shrinking the TAM, he increased ROI on sales efforts.
• Founders should hone in on a specific market segment to achieve PMF faster.

"The whole game in enterprise SaaS is high gross retention... I'll take ours in the mid to high nineties."

• Zach stresses that high gross retention is crucial.
• He achieves mid to high nineties by deeply partnering with customers.
• Founders should focus on customer success to ensure retention.