Remove .Net Remove Retention Remove Sales Remove Valuation
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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

This is true not only in terms of GAAP net profit (most conservative representation of profit), but also Airbnb’s FCF is well above even its adjusted EBITDA (most liberal representation of profit, sometimes referred to in jest as “profit before the bad stuff”). So Where Does Airbnb They Go From Here?

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How to Raise Money – It’s a Journey Not An Event

Steve Blank

For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Series B is about proving your net revenue model (can you be profitable?). The goal of the product at this stage is not a sale, but to test hypotheses about customer product/market fit.

Cofounder 429
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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Would that help retention and NPS (Net Promote Score)? The punchline of Chris’ argument is in the highlighted box, where he argues Procore is better off (having done an IPO and “as a result” of choosing the IPO), because Procore ended up with a valuation the day after the IPO of 20.5X Would they be loyal? Damn straight it would.

IPO 82
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18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

financial statement summaries, valuation analysis, ratio analysis, etc.) A model that shows X% growth over time with no embedded correlation to sales/marketing is a huge red flag. A more mature organization may project future revenues based on their actual sales pipeline, with a probability adjusted percentage based on stage.

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How should I finance my new venture? - Startups and angels: Along.

Tim Keane

How to prepare a sales forecast for a business plan » March 09, 2011. Example one: Sustainable net operating income with some growth in a stable market.    If plenty of cash flow regardless of plan for sale/retention of business: Senior bank debt based on cash flow coverage and new assets. 

Finance 83
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Are You Ready for Equity Based Crowdfunding?

Up and Running

The SEC’s proposed rules (mandated by the JOBS Act of 2012) amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to allow the offer and sale of securities through an internet crowdfunding campaign, similar in some respects to donation crowdfunding campaigns conducted on Kickstarter and Indiegogo.

Equity 125
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Square IPO: Is Square A Good Payments Business?

Agile VC

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. Gross Margins / Net Revenue.

IPO 165