Startup Professionals Musings

OCTOBER 12, 2010

It’s human nature to prioritize the metrics that get measured, so the simple act of keeping track is often enough to have a significant positive impact. Net Income: The five factors listed above all contribute to something that is directly measurable: net income. Detail isn’t important; tracking your progress is.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

David Teten

AUGUST 6, 2015

It’s misleadingly precise to have two digits to the right of the decimal in a CAC/LTV multiple for year 3 of your forecast (“Customer Acquisition Cost”/”LifeTime Value of Customer”). financial statement summaries, valuation analysis, ratio analysis, etc.) Use an appropriate number of significant digits. once a model has been finalized.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Rob Go

OCTOBER 14, 2012

Our intended pace is roughly 10 investments per year, and we had a handful of legacy angel investments that we rolled into the fund at cost. Early Progress: Performance is a difficult thing to measure as a seed stage fund given the time horizons and the fickleness of private company valuations. So that 23 is right on pace.

New Hampshire 50

New Hampshire Croatia Omaha Portfolio 50

Cracking the Code

JANUARY 22, 2009

For SaaS companies, we found that MRR is the best metric on which to base sales commissions. While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. which is very close to the typical 8% paid for sales commissions.

Software Review 91

Software Review Clawback Sales Salary 91

YoungUpstarts

MARCH 14, 2012

Net Operating Profit After Tax, or NOPAT, is a performance measure that reveals a company’s after-tax profit. NOPAT does not equal net income. EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a metric of measurement of cash earnings that is generally non-GAAP. Maybe double-check that contract.

Non-disclosure Agreement 202

Non-disclosure Agreement NDA IPO Covenant 202

The Equity Kicker

JANUARY 10, 2020

Maybe they’ll pivot to something great eventually, but in the interim period, the valuation goes sideways – and that’s not a good place for a VC to be. Plus, step one of the pivot is to get your costs really low in order to preserve the runway to give yourself a chance of succeeding – so the team has to go. Your first idea has failed.

Partner 68

Partner Early Stage Portfolio Metrics 68

Hearpreneur

SEPTEMBER 27, 2020

That mission could be impactful, to invest in it’s team or community, become net carbon zero or promote more diversity within its staff. A company is nothing without its customers; so is a company successful if it generates profit but has a low net promoter score, or review rate? Business success is great, but at what cost.

Entrepreneur 133

Entrepreneur .Net Metrics Revenue 133

ReadWriteStart

AUGUST 26, 2022

So they have about 60 million customers now, and they have a view of the net present value of each customer when they’re onboarding them and their models to show it. When you put those two things together, you get high-quality customers, high LTV, and acquisition at super low costs. Jonathan Siddharth. Yeah, yeah. David Zhang.

Partner 132

Partner Cofounder Retention Acquisition 132

Software By Rob

FEBRUARY 28, 2012

Details on which costs you chose to attack first (technical debt vs. free subscriptions vs. UX) is something all web businesses should think about. If you can go over the valuation methods each side used, that would be very helpful to know, even if you don’t share the cash figures involved.

Acquisition 53

Acquisition Software Review Technical Review NDA 53

David Teten

DECEMBER 3, 2019

Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking. Capital has built a free online tool for founders to calculate their cost of capital. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

This is going to be BIG.

JUNE 2, 2010

What I’m concerned about is that while your near term chances of survival go up, because you’re flush with cash, the net-net percentage chance of eventual “success” (defining success as a situation where most people, especially the entrepreneur, walk away happy) actually goes down. Drive one key metric. Try to prove one thing.

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Series B is about proving your net revenue model (can you be profitable?). What is some of the critical metrics that matter? Not all startups need outside investment to grow. Number of customers?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

trada.com

APRIL 7, 2010

You have to constantly be clear about what you are trying to achieve, what metrics move the business forward, how to learn enough about something to form an opinion of it, and in what order you think doing things will set your business up to scale. I think this is a net bad, and it’s dangerous to cater to it before you’re ready.

Stealth 40

Stealth PPC Advertising Conversion 40

Up and Running

OCTOBER 3, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. The solution: PARE shoulders the cost of renovations for young people who do not have the time, knowledge, or money to do it themselves. Milestones and metrics that you’ll need to hit to be viable. Milestones and metrics.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

ConversionXL

OCTOBER 22, 2018

As a group, we’ve gotten a firmer grasp on top-of-the-funnel metrics. To reframe marketing as an investment rather than a cost center, we must connect all the dots to revenue—but it’s hard to do without the right tools and models to get started. Some might stare blankly and ask what you mean.

B2B 131

B2B Marketing Analytics Campaign 131

Up and Running

FEBRUARY 17, 2016

Cash must be available to cover costs and offset delays. A startup brewery’s biggest costs tend to be the brewing system (e.g., Costs vary by scope, location, and market. Make sure your financial reserves can handle delays and extra costs. Metrics: Know your numbers. he explains.

Oregon 60

Oregon Jordan SBA Cofounder 60

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

The Next Web

DECEMBER 16, 2012

That’s given us insight into which valuation methods are good, helping site owners clinch that all-important deal, and which fall short, leaving sites unsold and their owners disappointed. Today I want to walk you through the more successful valuation methods in use now. The quality, reliability and cost of site traffic.

Valuation 128

Valuation NPV Net Present Value IRR 128

Austin Startup

FEBRUARY 12, 2019

seems to be the single metric and motivational driver to countless tech VCs and founders today and why so many founders and early employees get burned out with the grind of startups. startups with billion-dollar valuations) in recent years. startups with billion-dollar valuations) in recent years. And at what cost?

Silicon Valley 48

Silicon Valley Technical Review Venture Capital San Francisco 48

Cracking the Code

OCTOBER 10, 2008

Effectively measuring and understanding your CAC and CLTV metrics are key to future success. Ultimately, finding a low-cost, repeatable way to show customers how to be successful with your solution is as important as the solution itself. You put into words what we were thinking for our cost of client. Brian, Paglo www.paglo.com.

Software Review 48

Software Review North America Europe Metrics 48

Up and Running

MAY 15, 2019

Cash must be available to cover costs and offset delays. Estimate brewery startup costs. Start with estimating your startup costs. A new and growing brewery’s biggest costs tend to be the brewing system (e.g., Costs vary by scope, location, and market. Metrics: Know your numbers. he explains.

Oregon 24

Oregon Jordan Software Review Distribution 24

Cracking the Code

JULY 6, 2007

SaaS business metrics: why are they different? Different models require different performance metrics. developed a white paper on performance metrics for Technology service Vendors (TSV) and this post present the key elements of his reflexion adapted for SaaS companies. The MRR is a great metrics, but it can be perfected.

Software Review 66

Software Review Metrics Valuation Technical Review 66

Cracking the Code

FEBRUARY 4, 2008

What metrics should I be using to drive a saas business? If you want to learn more on SaaS metrics, you can read my previous blog post. Your key business metrics are CMRR (Contracted Monthly Recurring Revenue) and cash. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. anecdotes. (13).

Software Review 48

Software Review South Korea IPO Portfolio 48

Up and Running

DECEMBER 9, 2014

Maybe you are wondering which metrics to track, or whether or not you should take out a loan for your business. The DIY mentality can really bog you down and become a burden eventually, plus it can really cost you more time and money in the grand scheme of things. Then the second one here which I eluded to is really all about cost.

Small Business 95

Small Business Finance Forecast Metrics 95

Agile VC

NOVEMBER 9, 2015

I’ll address potential valuation further down the post here. Unfortunately the fact that the company raised capital in private markets at a healthy valuation ($6B) and the uncertainty about having a CEO who’s attention is divided between two public companies obscures this story. What are customer acquisition costs like?

IPO 165

IPO .Net Revenue Acquisition 165