Five Critical Mistakes “B” Round Software Vendors Make
Doug Razzano / June 1, 2021
Hundreds of technology vendors have emerged in Big Data, Security, and DevOps segments over the last ten years. Many successfully have transitioned from an “A” round into the critical “B” round expansion stage funding event.
Having worked in four “B” round software technology vendors and partnered with many vendors to assist in their scale-out for revenue-generating roles, we discovered five common mistakes that ultimately hinder the acceleration of strategic revenue. The “B” round of funding is the critical “pedal to the metal” moment on scaling out the organization. Quota’s triple, and hiring the wrong revenue-generating talent can be fatal. Sadly, the average VP of Sales tenure is only 19 months. https://www.gong.io/blog/vp-sales-average-tenure/
Let us set the stage here.
The vendor gets the “B” round funding, the VP of Sales and VP’s of SE’s are in a mad scramble to recruit and hire across the United States. Each leader brings in candidates to their teams, but they run out of in-network candidates, so they hire an internal recruiter, and they start posting ads on LinkedIn. Few quality candidates apply. After thirty to forty-five days of sifting hundreds of resumes, terrible interviews, the VP’s are desperate to find quality talent. They cannot understand why candidates are not jumping to get on this fantastic rocket ship. We get the call.
Time and time again, this repeatable outcome mimics reality. “A” round leaders and VC’s Partners are expecting the Sales Leaders to get this phase of expansion done quickly; that’s their job. Sadly few do in the anticipated time window. Yes, leaders bring in some candidates to fill the roles. However, very few A or B players move from current positions at this exact moment in time.
Great talent is not looking for the next “thing” they do not know XYZ company exists. Lacking a Talent Partner/Brand Ambassador who’s nurturing, articulating, and educating these candidates on the opportunity, your culture, vision, and technical value propositions, you will find recruiting the best talent at this CRITICAL point in time impossible.
The Five Critical Mistakes
Technology vendors in the expansion phase from “A” to “B” rounds will build better teams by aligning with a Talent Partner/Brand Ambassador that understands your market, has years of nurturing passive candidates. This partner understands your vision, technology and can articulate the opportunity, to gain candidate alignment, culturally, technically, and emotionally.
“You cannot win a sport championship recruiting players on the “Open Day of Training Camp,” but this is what vendors do.
These common mistakes are guaranteed.
- Hiring window extends beyond anticipated window = time to revenue lags across the team
- Hiring what’s available candidates = lesser quality candidates = Sub-optimal performers
- Onboarding & Sales Enablement is immature = lesser experienced Reps fail
- Hundreds of hours interviewing = less time onboarding, building pipeline, coaching, and qualifying prospects with Reps
- Revenue targets are in jeopardy
ScaleOut Partners brings twenty-three years of accelerating strategic revenue growth to technology vendors by providing proven talent. Building winning teams takes partners who align with your mission, culture, and vision. Our extensive network of nurtured, revenue-generating candidates across Leadership, Pre-Sales, Enterprise Sales, and CSMs will yield your best chance to an acceleration of strategic growth. When’s your “B” round happening?