Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. If so, whatever revenue forecast and sales cycle estimates you had are no longer valid. What are the new financial metrics?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

The Equity Kicker

DECEMBER 2, 2015

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. revenue multiple because it’s strong on both these metrics. revenues because growth is much lower – forecast at 5-7% next year, and their EBITDA margin is 8%. Fitbit enjoys a 3.3x 1-800 Flowers, meanwhile is valued at 0.6x

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

Up and Running

JULY 14, 2015

The net effect of raising too little funding is that the company runs out of money and all growth comes to a grinding halt. Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. Should you ever raise more than you need?

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. multiple interested investors competing for the deal, and driving up your valuation in the process). Never have an investor think they are the only investor pursuing your business, as that will hurt your valuation.

Valuation 167

Valuation Forecast Seed Stage .Net 167

David Teten

AUGUST 6, 2015

So often I speak with companies that have charged ahead building an ultra-complex daily or weekly model with thousands of assumptions and complex dashboard outputs, when their potential investors simply want a high-level 24 month forecast with 12 months of reconciling historical data.”. HOW TO MAKE YOUR CELLS READABLE.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

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

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. Detailed SaaS Spreadsheet (Valuation and CAC benchmark).

Software Review 91

Software Review Clawback Sales Salary 91