Both Sides of the Table

DECEMBER 27, 2011

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418

Startup Revenue Technical Review Flash 418

YoungUpstarts

OCTOBER 31, 2017

by Robbie Kellman Baxter, author of “ The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue “ In today’s competitive market, customer engagement (or lack thereof) could determine whether your company sinks or swims. Customer Success goes beyond Customer Service.

Customer 171

Customer Retention Software Review Metrics 171

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Founders tend to fixate on the product.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Hearpreneur

SEPTEMBER 27, 2020

For example, are you measuring revenue growth, or profitability? That mission could be impactful, to invest in it’s team or community, become net carbon zero or promote more diversity within its staff. Business success is not overrated; as long as you are the one that defines the metric which qualifies the success.

Entrepreneur 133

Entrepreneur .Net Metrics Revenue 133

The Startup Magazine

JULY 21, 2021

Kevin Wu, co-founder and CEO of job search optimization program Pathrise , says “Digital marketer roles are some of the most in-demand positions in the tech industry.” Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. And he’s right. Is it any wonder they’re essential?

Technical Review 78

Technical Review PPC SEM Marketing 78

YoungUpstarts

JANUARY 10, 2018

In other words, if there exists low hanging fruit for your company to expand, sometimes leaving that fruit alone before you sell will help you entice a higher multiple, resulting in your net benefit. Another important metric is churn. Profile Your Customer Base.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

leananalyticsbook.com

AUGUST 19, 2012

The One Metric That Matters. One of the things Ben and I have been discussing a lot is the concept of the One Metric That Matters (OMTM) and how to focus on it. Founders are magpies, chasing the shiniest new thing they see. There are also some rules for what makes a good metric in general. Contact us. ? Navigate About.

Metrics 58

Metrics Clickthrough Lean Analytics 58

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 17, 2011

As a preamble to the metrics, it’s useful to know what you’re measuring and why it’s vital. We had a spike in this metric in February at WP Engine when our Internet provider themselves had a datacenter-wide catastrophe which brought us down for twelve hours; of course not all spikes will have such obvious causes.

Business Model 245

Business Model Metrics Engineer Technical Review 245

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. To manage these employees companies create metrics to control, measure and reward execution.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 23, 2016

That last bit should sound familiar if you follow theories of Startup Laws & Metrics. When “growth rate” becomes the only important metric for company “fitness,” other metrics are left unsolved. “Profitability” is perhaps the most-talked-about example of a metric left unsolved.

Technical Review 120

Technical Review Viral Metrics Salary 120

YoungUpstarts

FEBRUARY 13, 2019

by Robbie Kellman Baxter, author of “ The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue “ Everyone knows that retention is crucial for subscription-based companies. ” A value problem is very different from a budget problem. Dig deeper. Why or why not?

Customer 173

Customer Technical Review Retention Acquisition 173

Agile VC

JUNE 5, 2011

Even for those who don’t care to dive into the numbers, it’s worth a quick glance because co-founder/CEO Andrew Mason wrote a letter which forms the preamble of the full document. How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). 2010 Gross Profit: $280M.

North America 100

North America Chicago Boston Silicon Valley 100

Startup Lessons Learned

OCTOBER 21, 2013

Also among the new speakers is Keya Dannenbaum, founder and CEO of ElectNext. So we spent some time iterating--leanly, we thought--on the revenue model. There were a number of reasons: the users (from whom net promoter scores averaged 9.5! The problem of vanity metrics seemed to exacerbate itself as we added more employees.

Lean 152

Lean Startup Metrics Silicon Valley 152

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. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Austin Startup

JUNE 26, 2019

Many people have reached out sharing knowing and kind words about our journey and choice to wind down our venture, as well as their appreciation for my choice to pull back the curtain on what is statistically a common road for many founders. It details a landscape founders like me are excited to sink their teeth into? Of course not!

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

Startup Lessons Learned

OCTOBER 19, 2013

She’s the founder and Creative Director at Xanadu, a mobile strategy and design consultancy helping to guide app developers to success in a rapidly-changing, often chaotic mobile ecosystem. They''ll typically appear to do well early on, but won''t have enough of a passionate following to achieve meaningful growth or revenues.

Mobile 167

Mobile Developer Technical Review Lean 167

View from Seed

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. Revenue growth rate of 82% year over year. 10M+ daily active users (DAUs). So Slack generated $1.43

Lock-up Period 168

Lock-up Period Retention Azure .Net 168

Version One Ventures

DECEMBER 6, 2018

Last week, we kicked off a blog series to help founders determine their company’s core priorities and strategies at each stage of the progression from seed to Series A and Series B. This metric is over 90% for best-in-class startups and is a huge driver for above mentioned LTV.

Acquisition 150

Acquisition Distribution Metrics Retention 150

David Teten

DECEMBER 3, 2019

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. Russell Rothstein, Founder and CEO, IT Central Station , a product review site, said, “We see VCs on our site very often. 3) Raise capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Duct Tape Marketing

OCTOBER 11, 2023

John Jantsch (13:13): Alright, let's talk about R O I or metrics in general. I think that those have obviously, I think people are putting metrics to those, but what do you say to a B2B person that's just like, how's that going to move the needle? A lot of it's around influence pipe that influence pipe number for b2b.

B2B 81

B2B Marketing B2C Community 81

Version One Ventures

SEPTEMBER 28, 2015

A few months ago, we wrote about the data we focus on to evaluate marketplaces and later shared a marketplace KPI dashboard that we created to guide founders on the important metrics they should track. There are lots of great blog posts and articles out there that talk about social platform metrics.

Metrics 60

Metrics Churn Rate Due Diligence Social Network 60

Startup Lessons Learned

MAY 11, 2020

I just saw a friend of mine who's a finance person temporarily pause his job and volunteer to be the CFO or investor, whatever investor relations person for a startup was trying to work on a cure so that the founders could have more time to do the science. Not a lot of founders I know right now are sleeping great through the night.

Silicon Valley 68

Silicon Valley Technical Review Government .Net 68

Startup Lessons Learned

NOVEMBER 22, 2008

Lessons Learned by Eric Ries Saturday, November 22, 2008 Net Promoter Score: an operational tool to measure customer satisfaction Ive mentioned Net Promoter Score (NPS) in a few previous posts, but havent had a chance to describe it in detail yet. Net Promoter Score NPS is a methodology that comes out of the service industry.

.Net 158

.Net Operations San Francisco Lean 158

ConversionXL

AUGUST 13, 2019

SaaS sales and marketing teams can get overwhelmed by metrics. But without any metrics, it’s impossible to track growth. If growth is the best way to get out alive, marketing metrics do little unless they correlate with sales. But only 400 software companies have made it to the $500M revenue mark.

Metrics 117

Metrics SQL Retention Churn Rate 117

Agile VC

NOVEMBER 9, 2015

There’s been ample coverage in the popular press of course highlighting everything from the company’s revenue growth, lack of profitability, and the well-publicized fact that founder/CEO Jack Dorsey is also CEO of Twitter so would theoretically be running two public companies simultaneously. Revenue Composition. Revenue Growth.

IPO 165

IPO .Net Revenue Acquisition 165

Agile VC

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. You can see this both by looking at a cohort “layer cake” graph or by examining the net dollar retention.

Lock-up Period 100

Lock-up Period Retention Azure .Net 100

SoCal CTO

MARCH 22, 2007

I have to say that it has netted far more than I would have thought. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? Weve also found that potential clients find us through LinkedIn. Im very happy with the time Ive spent building up my LinkedIn network. Marketing, Startups and Networking in Los Angeles.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

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. My founders and I started the company about three years ago. Which metrics do you most rely on to understand your business itself. Two, revenue. Now we’ve got another poll question for you. What do you do?

Small Business 95

Small Business Finance Forecast Metrics 95

ReadWriteStart

AUGUST 26, 2022

So, think of the typical two founders with a pitch book in a garage. Instead, that’s the sort of pre-series-A investment where companies or founders have visions of where they think there are underserved market needs, and they’re coming up with something super excited to try to solve that. . We’re a crossover fund.

Partner 132

Partner Cofounder Retention Acquisition 132

Duct Tape Marketing

SEPTEMBER 10, 2019

He is the founder of the Value Builder System , a company that helps business owners improve the value of their company, and he’s also the author of the bestselling book, Built to Sell: Creating a Business That Can Thrive Without You. And I’m guessing one of them certainly is a lot of, “What’s the revenue?

Entrepreneur 50

Entrepreneur Switzerland Revenue Differentiation 50

Steve Blank

FEBRUARY 22, 2010

Putting together a financial model and having the founders understand the interrelationships of the variables that can make or break a business is a worthwhile exercise. I had been confused for years why I had to update an income statement each board meeting that said zero for 18 months before we had any revenue. Startup Metrics.

Balance Sheet 300

Balance Sheet Startup Burn Rate Metrics 300

This is going to be BIG.

FEBRUARY 17, 2020

We’ve all heard the anecdotes—the famous founder who pitched 1000 investors before any of them said yes. Most founders I know who are in this mode simply haven’t done enough homework and planning on the idea. 7) Does such a model get you to a long term size that makes sense for venture capital investors (north of $100mm in revenues)?

Startup 110

Startup Viral Venture Capital .Net 110

The Next Web

FEBRUARY 27, 2014

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry. Rule of thumb.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Version One Ventures

JULY 13, 2015

We hope that our version of a Marketplace KPI dashboard helps founders manage their business and pre-empt those due diligence questions in a fundraise. The dashboard is separated into three dimensions to measure the efficacy of your business: 1) overall marketplace metrics; 2) seller/supplier metrics; and 3) buyer metrics.

Due Diligence 60

Due Diligence Retention Metrics Revenue 60

Startup Professionals Musings

OCTOBER 12, 2010

That’s because a company’s value is a composite of all of the quantitative and qualitative factors that comprise a company: revenues, expenses, risks, growth prospects, quality of the management team, competitive advantages, strength of the intellectual property, and so forth. In business, one important measure is the value of the company.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

Startup Lessons Learned

OCTOBER 23, 2013

It provides a basic introduction to analytics as they apply to Lean Startup, including sections on what metrics to use and how to interpret them. For instance, Ben lists out the worst of the “vanity metrics,” a term that describes appealing but meaningless or misleading numbers. Alistair: There are plenty. Consider a restaurant.

Analytics 167

Analytics Lean Widget Metrics 167

ConversionXL

AUGUST 11, 2021

All companies that This Week in Startups’ audience of entrepreneurs, company founders, and marketers would be interested in. Here’s an example from The Sponsorship Collective : Hi Dave, I noticed on LinkedIn that you are involved in the sponsorship program at Company X, focused on high net worth moms who live in the suburbs.

Audience 139

Audience Social Media Email Ruby 139