View from Seed

JUNE 13, 2019

revenue business still growing >50% YoY? Chewy now has over 10 million customers, repeat purchases by existing customers account for approximately 90% of their revenue today. This is analogous to SaaS companies like Slack or Dropbox, which have strong revenue growth just as their existing users consumer more of their service.

Leadership 214

Leadership .Net Revenue Acquisition 214

Steve Blank

MAY 17, 2022

Deep Learning /Neural Nets – a subfield of machine learning. Neural nets are effective at a variety of tasks ( e.g., image classification, speech recognition). A deep learning neural net algorithm is given massive volumes of data, and a task to perform – such as classification. See here.). Example here.

Artificial Inteligence 417

Artificial Inteligence Software Review Algorithm Technical Review 417

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Up and Running

DECEMBER 16, 2021

In order to avoid formal valuation report costs, shareholders utilize benchmarks of the industry and rules of thumb to estimate the ballpark values of their interests. It enables shareholders to estimate the rough value of their business quickly and cost-effectively. Rules of thumb and business valuation.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

Berkonomics

OCTOBER 5, 2023

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. How about young or pre-revenue companies? Why did the company abandon a profitable market, even if it could not generate $100 million a year in revenues?”

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Both Sides of the Table

DECEMBER 27, 2011

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. ” If you’re not profitable you’re purely a cost center to them. Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

Startup 418

Startup Revenue Technical Review Flash 418

This is going to be BIG.

JANUARY 18, 2024

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. It will save everyone a lot of cost and time.

.Net 88

.Net Cap Table Startup Technical Review 88

Up and Running

NOVEMBER 12, 2021

Creating a financial plan enables companies to predict expenditures and create an effective plan for incoming revenue. Recording your expected revenues and expenses monthly does not count as effective budgeting. Not planning for emergency costs. Effective budgeting plays an integral role in small business success.

Technical Review 132

Technical Review Software Review Forecast Cloud 132

Berkonomics

JANUARY 12, 2023

Some types of businesses generate more and more recurring revenues over time, often growing to a size where recurring revenues pay all of the overhead of the company – an enviable position. The surprising recurring revenue trap. Legacy system recurring revenues. The enterprise value of recurring revenue-based companies.

Revenue 118

Revenue Cloud IPO .Net 118

The Startup Magazine

JANUARY 17, 2021

EMPLOYEE NET PROMOTER SCORE . You may be familiar with the net promoter score (NPS). While measuring the sales revenue, it might take time to figure out those marketing parts that yield sales. The ratio of operating cash flow to the net capital gives insights into the financial status and anticipates profits. SALES KPIs.

.Net 92

.Net Metrics Retention Revenue 92

Feld Thoughts

JULY 9, 2019

We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis. Since we invest across a number of different themes, we’ve had to deal with very different revenue and gross margin profiles since the beginning, whether we realized it or not. We’ve been doing this for a long time at Foundry Group.

Revenue 179

Revenue Valuation .Net IPO 179

Agile VC

JUNE 13, 2019

revenue business still growing >50% YoY? Chewy now has over 10 million customers, repeat purchases by existing customers account for approximately 90% of their revenue today. This is analogous to SaaS companies like Slack or Dropbox, which have strong revenue growth just as their existing users consumer more of their service.

Leadership 100

Leadership .Net Revenue Acquisition 100

VC Cafe

FEBRUARY 21, 2023

Year over year conversion trends according to Hubspot ( source ) Unlike 2021, when money was cheap and plentiful, the mantra for startups is no longer blitzscaling and growth at all costs. Some studies suggest that the best consumer subscription companies are able to retain 65% of their revenue after one year.

Retention 109

Retention Conversion Churn Rate B2C 109

Startup Professionals Musings

MAY 15, 2019

You can review all the specifics of this approach in the classic book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here. Great businesses begin with a customer problem that has a big and monetizable pain point.

Startup 245

Startup Angel Investor Technical Review Incubator 245

The Startup Magazine

JULY 21, 2021

Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. With PPC, impressions cost nothing. Ideally, digital marketers can optimize PPC marketing campaigns so the conversions (sales) from the ad nets more revenue than the cost of the campaign.

Technical Review 146

Technical Review PPC SEM Marketing 146

ConversionXL

FEBRUARY 3, 2022

Don’t cast your net too far and wide. For each potential channel, look at: Customer acquisition cost How many customers you can reach Whether the channel reaches the right audience. Use qualitative customer surveys and gather Net Promoter Score feedback to understand user intent and friction. What are their desires? Activation.

Retention 113

Retention Marketing Acquisition Channel 113

Both Sides of the Table

NOVEMBER 3, 2009

In all of these new product and cost-focused new trends, a big problem has emerged that all of these movements have not addressed. Let’s take your revenue line. How will you go to market in a cost effective way to achieve similar margins as your competitors. The cost side of the equation is also important.

Business Plan 334

Business Plan AJAX Venture Capital Technical Review 334

Startup Professionals Musings

OCTOBER 8, 2022

Another alternative is to build one yourself, starting with a few formulas to extrapolate early revenues and expenses into the five-year projections normally requested by banks and investors. Vendor costs are subject to change, customers are fickle, competitors come out of the woodwork and the economy can take a downturn.

Conversion Ratio 368

Conversion Ratio Startup Business Model eCommerce 368

Berkonomics

JANUARY 5, 2023

If you are experiencing 20% annual growth and 20% net profit before depreciation and tax, or any combination that adds to 40% (such as 10% profit and 30% growth), you are a prime target. That’s quite a goal to achieve. But there are obvious and not–so obvious ways to make it happen, even if over time. The second rule: The 20/20 rule.

Acquisition 62

Acquisition .Net Retention Sales 62

YoungUpstarts

SEPTEMBER 7, 2014

Revenue Growth. Enterprise startups must have processes in place to monitor revenue growth. According to a Pacific Crest survey , the average year-over-year revenue for enterprise startups is 89 percent. If you’re doubling revenue every year, you’re in great shape. Lifetime Value/Cost of Acquisition.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

Transformify

JULY 14, 2021

These types of workers are referred to as ‘deemed employees’ by HMRC or “Her Majesty’s Revenue and Customs” If workers are found to come under the regulation of IR35 contractor UK , then they will have to pay both National Insurance Contributions and income tax as if they were employed by that company.

.Net 98

.Net Software Review Employee Revenue 98

Startup Professionals Musings

MARCH 31, 2023

Hidalgo recommends a focus on engagement stage indicators including customers by channel, conversion ratio, and cost per revenue. You need to track what content is resonating with your prospective customers, through metrics including submit rate by content offer, elasticity, velocity, cost, and ultimately revenue by content program.

Demand 256

Demand Metrics NPV Net Present Value 256

Up and Running

NOVEMBER 3, 2021

Say you’re moving across the country, which can cost anywhere from $1500 to $6000 on average. On the other hand, if you receive a payment of $2000, that’s considered income or revenue, you’ll generate positive cash flow that can be reinvested in other areas. .

Balance Sheet 81

Balance Sheet Management .Net Metrics 81

Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

JULY 3, 2020

Hidalgo recommends a focus on engagement stage indicators including customers by channel, conversion ratio, and cost per revenue. You need to track what content is resonating with your prospective customers, through metrics including submit rate by content offer, elasticity, velocity, cost, and ultimately revenue by content program.

NPV 436

NPV Net Present Value Conversion Ratio Marketing 436

The Startup Magazine

OCTOBER 27, 2019

Unfortunately, such a high number does not translate to an equal level of revenues. An even more surprising statistic is that over 60% of all business-related revenues are collected by large corporations, the likes of which include Apple, Facebook, Amazon, Google, and similar. Inventory Issues.

Technical Review 62

Technical Review Revenue Software Review Campaign 62

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

DECEMBER 2, 2022

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. The most common failures are solutions looking for a problem, lack of a defined market, or an inadequate revenue model. Revenue model. Cost structure.

Business Model 256

Business Model Distribution Viral Green 256

Up and Running

JULY 22, 2014

It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. how you make money.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

Startup Professionals Musings

JULY 15, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Forecast 238

Forecast Business Plan Burn Rate .Net 238

Steve Blank

JUNE 27, 2017

Its employees and investors don’t depend on an existing revenue stream. Every Airbnb rental is a lost night of revenue for hotels that hate it. In the 20 th century companies worried about increasing their market share, profit margins, return on investment and return on net assets. None of the renters pay hotel or tourist tax.

Startup 275

Startup New York City Valuation Distribution 275

Berkonomics

FEBRUARY 11, 2021

Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Then they calculate cost of sales, and then project their expenses, to find the bottom-line profit or loss each projected month. Project your revenues and costs as in the original exercise.

.Net 62

.Net Forecast Salary Revenue 62

The Startup Magazine

MAY 31, 2022

On the other hand, HR agencies offer cost-effective, standardized services, while consultants offer customized HR solutions (best for small companies). Payroll management entails several steps, including: Calculating allowances (such as rent and travel expenses) and salary components (variable and net pay). Cost-cutting.

United States 135

United States Salary UAE Hiring 135

David Teten

MARCH 5, 2021

BCG (June 2018): “Startups founded and cofounded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period: $730,000 compared with $662,000.”. By way of comparison, the typical profitable firm in our sample had a net profit margin of 6.4 How do we reconcile these two sets of data?

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

The Startup Magazine

JULY 21, 2021

Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. With PPC, impressions cost nothing. Ideally, digital marketers can optimize PPC marketing campaigns so the conversions (sales) from the ad nets more revenue than the cost of the campaign.

Technical Review 78

Technical Review PPC SEM Marketing 78

ConversionXL

AUGUST 13, 2019

It’s common for companies to put a revenue figure on what it means to be successful in SaaS. But only 400 software companies have made it to the $500M revenue mark. Chances are you’ve been told to focus on metrics like: Monthly Recurring Revenue (MRR); Lifetime Value (LTV); Customer Acquisition Cost (CAC).

Metrics 117

Metrics SQL Retention Churn Rate 117

Startup Professionals Musings

AUGUST 31, 2019

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. As best, you should reserve this option for later stage VC discussions, once you have a well-proven business model, large market following, and substantial revenue. Going public is an expensive process.

IPO 210

IPO SEC Prospectus Startup 210