by Cheyenne Richards
With the world’s ever-expanding appetite for great engineering talent, hiring is becoming a larger and larger challenge for tech companies. Never has it been more critical to know just how much you should pay that promising candidate.
If you're a startup -- How do your salaries compete with more traditional IT firms? Where in the world is the cheapest place to source talent? And if you're bootstrapping development, which are the least expensive programming languages to work with?
If you're an IT firm -- Are freelance or in-house resources more cost effective? What is a benchmark career path for an engineer?
By Max Marmer, Compass Co-Founder Emeritus and Cheyenne Richards, Compass Writer and Marketer
This is the third installment in the Startup Revolution Series. In the first post, we suggested humanity may be approaching—or have already passed—the tipping point between the Industrial and Information Eras. In the second, we provided data that demonstrates fairly conclusively that Industrial Era-focused blue chip companies have lost significant value over the past 50 years, as defined by return on assets.
So what is rising in their place? This post will focus on the Information Era businesses that are best adapted to this new Darwinian business environment: Startups.
The survey for the 2015 Startup Ecosystem Report kicks off today — in a partnership by CrunchBase and Compass. Participate here.
San Francisco, CA, 4 February 2015—CrunchBase, the world’s most comprehensive dataset of startup activity, and Compass, creator of the most extensive benchmark data for startup performance, announce the kickoff of a collaborative project that is as critical to the global economy as it is ambitious. Since the groundbreaking results of the Kauffman Study, which demonstrated that “Startups that develop organically are almost solely the drivers of job growth,” there has been an increasing demand for information about how to create thriving local ecosystems.
Beginning today, startups around the globe may access the Startup Ecosystem 2015 Survey to provide their data to help measure the health and growth of their ecosystem relative to as many as 40 others. They will also be able to benchmark their individual results with their relevant peers, providing a highly useful perspective that enhances decision-making.
by Max Marmer, Compass Co-Founder Emeritus
This is the second post in the Startup Revolution series. The first may be found here.
In the last post, we suggested humanity may be approaching—or have already passed—the tipping point between the Industrial and Information Eras. Now we will delve deeper into why the old wisdom no longer seems to apply and blue chip companies are far from the reliable investments they used to be.
Let’s start with the good news.
-- By Bjoern Lasse Herrmann and Max Marmer
For the past decade or more, Max and I have either heard or experienced endless stories of startup failures. We took as a given that more than 90% of startups go bust instead of bang, but we were also inspired by the amazing success stories — from Salesforce to Google to Kickstarter — that built new industries, created tens of thousands of jobs and transformed society.
And so we asked ourselves one day in the backyard of a house in Atherton: What if that failure rate could be reduced by even a small percent? How much could society benefit if 1% fewer startups failed? 2%? We became bolder. If the code could be cracked on what factors led to more favorable outcomes, could we actually help maximize success rates??
The following series of posts is a detailed look at why, at this unique moment in human history, we firmly believe that nurturing startups is critical to the well-being of our world.
So we reached out to entrepreneurs across the globe, and over the past several years have been overwhelmed by the tens of thousands of people who have shared their data in service to the entire startup community. The findings from our communal efforts have been published in reports, articles and blogs, have been incorporated into the curriculums of hundreds of universities and have been referenced by the Obama Administration, Chancellor Merkel and leaders in dozens of countries.
Then we built benchmarking dashboards to help individual companies, partners and ecosystems make more informed choices, given their unique circumstances and peer groups. We continue to refine Compass Benchmark, Compass Monitor and Compass Ecosystem, and have many releases in process.
Does this mean we’ve achieved our mission? Hardly. For all we’ve achieved as a community, there are always more questions to be asked, more data to be analyzed, more algorithms to be refined. So we continue to chip away at the code of startup success, with a special focus on delivering an updated version of The Startup Ecosystem Report in spring of 2015.
In the meantime, here is a look at the series of posts that will lead up to its release.
As we begin the new year, we wish you the greatest possible success with all your ventures.
— Bjoern Lasse Herrmann, CEO of Compass
The Startup Revolution Series Overview
Part 4: The Critical Role of the Startup Ecosystem (coming soon)
Part 5: Startup Ecosystem Report 2015 (coming soon)
by Niels Pflaeging, Founder, BetaCodex Network
Participate in Compass’ Q2-Q3 2014 financial benchmarking study and inform your financial planning and resource allocation decisions.
Join the free Proformative webinar “Using Real-Time Financial Benchmarks to Drive Dynamic Planning, and Real-time Decision-Making” on 11/25/2014 at 11 am PST.
For decades, organizations of all sizes and from all kinds of industries have curated and perfected management practices such as fixed target setting, target negotiation, planning, budgeting, forecasting, plan-actual variance reporting, incentives-setting, and individual performance appraisal. Now, things are changing: Those practices, usually combined under brands such as Management by Objectives, Merit Pay, or Pay-for-Performance have recently come under fire. If markets and work are becoming ever more dynamic, how can static, annual rituals remain effective and appropriate to improve or even control performance?
We have two exciting news to share!
1. We raised more than 2 Million in a second round of funding from first institutional Investors including NEA, Profounders and Crosslink and strategic investors including Tom Glocer (ex-CEO of Thomson Reuters), Banca Intesa and Oliver Rothschild joining existing
Compass investors, including Steve Blank, Allen Morgan, Roger Krakoff, Rhodium, Erik Jansen and Amir Banifatemi (see full list here: https://angel.co/compass-4) to fund our mission of minimizing business failure by
providing automated, crowdsourced benchmarks and industry insights. This totals our investment to date to ~3 Million US Dollars.
2. We just launched Compass Monitor that allows companies to securely share selected data with investors, advisors or consultants. Compass Monitor pulls data directly from various data repositories (Google Analytics, Stripe, Quickbooks, etc.) to automate the continuous delivery of selected data. It saves hours of collecting sharing and reviewing data every week for the investor and entrepreneur.
One of our first beta tester Marcin Szelag from Innovation Nest said: "Compass Monitor solves a major problem for investors. On top of that it is easy to use and looks good."
Hiring is one of the biggest challenges a company faces. In a recent article by David Smooke, 50 entrepreneurs shared their biggest hiring challenges, most of them expressing concerns around salary, equity and benefits for employees. Figuring out what to pay an early startup employee is difficult. This is a problem that we, at Compass, have faced in our efforts to expand our small team, and is often echoed by most of our users. The prevailing popularity of this challenge made us dig deeper into the issue and we are determined to find an answer by conducting a survey for employee salary and equity in tech startups.
Employers: Click here to take the survey
Tech employees: Click here to take the survey
-- By Danny Holtschke
I am super excited to lead the Startup Ecosystem Report once again helping entrepreneurs worldwide to gain a bigger voice and influence on policy makers. The updated Startup Ecosystem Report will push policy makers to improve startup ecosystems and support entrepreneurs to ultimately increase today's low startup success rate.
Danny Holtschke (@dannyholtschke)
Consultants, investors, accountants and bankers waste half their time chasing and formatting their client’s data, then looking for reference values to pinpoint problems before they can put their expertise to work. For the software businesses they support, this situation is equally imperfect, requiring time-consuming cycles to provide data and leading to less relevant advice and slower access to capital.
Today, Compass announces the first solution designed to give B2B service providers continuous access to key data across a portfolio of clients, along with the relevant benchmarks and industry insights we're known for, launched in a new dashboard product we call Compass Monitor, allowing access to critical information for a portfolio of businesses.
“After launching Compass, we learned many of our biggest referrers were consultants, advisors and investors who found Compass an invaluable tool for serving their many customers,” said Bjoern Lasse Herrmann, CEO of Compass. "So we built the Compass Monitor product to provide an easy way to track a portfolio of businesses. Still, even we were surprised by the level of interest. Before any announcements, we already had 400 companies on the waiting list, including partners from almost every large venture capital, consulting, accounting and market research firm.”