SaaStr 076: What Metrics Seed Investors Require For Prospective SaaS Investments & What Makes The Best SaaS Investors with Rob Siegel, Partner @ XSeed Capital

Robert Siegel is a Partner at XSeed Capital, one of the leading seed funds in the valley. At XSeed, Rob specialises on, you guessed it, all things from the wonderful world of SaaS and he sits on the Board of Directors of Cape Productions and Caller Zen. Robert is currently on the faculty at the Stanford Graduate School of Business where he teaches an array of topics that he led to His role as the Co-President Emeritus of Stanford Angels & Entrepreneurs. Prior to joining XSeed, Robert was General Manager of the Video and Software Solutions division for GE Security, with annual revenues of $350 million. Before that, Robert was Co-Founder & Chief Executive Officer of Weave Innovations Inc. (acquired by Kodak). If that was not enough Robert also served in various management roles at Intel Corporation, including an executive position in their Corporate Business Development division, in which he invested capital in startups that were strategically aligned with Intel’s vision. I would also like to say a huge thanks to Tien @ Zuora for the intro to Robert today.

In Today’s Episode You Will Learn:

• How did Robert make his way into the world of SaaS? What was it about XSeed that made him want to make the transition from operations to VC?
• We have seen many big SaaS exits in the last year with Marketo and Nutanix, does Robert think the time for big SaaS exits has come and gone? Have we moved to a world of consolidation?
• How do companies both large and small need to react to this shift on a strategic level? How does this affect the internal infrastructure of larger companies?
• For smaller startups, how should their attitude to competition change? How does this change Robert’s search process as an investor? How can smaller startups make themselves attractive acquisition targets?
• How does Rob’s view of consolidation affect his excitement for mega returns in SaaS? How does it impact how Rob approaches valuation? How does this change Rob’s expectations of unit economics?

60 Second SaaStr

1. Strategic investors: Good or Bad?
2. What does Rob know now that he wishes he had known when he started?
3. Fave SaaS resource or reading material?
4. Greenfield opportunity in SaaS?

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Jason Lemkin

Harry Stebbings

SaaStr

Robert Siegel