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

Startup Professionals Musings

MAY 23, 2022

One 11-year study of over 200 companies over a decade ago, detailed in the book “ Corporate Culture and Performance ,” found that those working on their culture improved revenue by 516%, and increased net income by 755%.

Software Review 291

Software Review Offshore Entrepreneur Leadership 291

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

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

Up and Running

DECEMBER 16, 2021

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). Where Gross Profit = Net Sales – Cost of Goods Sold.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

Berkonomics

OCTOBER 5, 2023

How about young or pre-revenue companies? Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. Lots of good jobs were lost and many investors including me were left with the question.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

This is going to be BIG.

JANUARY 18, 2024

They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. The first thing you need to get straight with a high net worth individual—what is their return expectation? I’ve had great relationships with high-net-worth individuals acting as leads or co-leads in early rounds of companies.

.Net 88

.Net Cap Table Startup Technical Review 88

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

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 93

.Net Metrics Retention Revenue 93

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

ConversionXL

FEBRUARY 3, 2022

Don’t cast your net too far and wide. Use qualitative customer surveys and gather Net Promoter Score feedback to understand user intent and friction. In the retention phase, measure these performance metrics: Retention rate vs. churn rate Customer churn Net Promoter Score Email open rates Email click-through rate.

Retention 113

Retention Marketing Acquisition Channel 113

VC Cafe

FEBRUARY 21, 2023

Some studies suggest that the best consumer subscription companies are able to retain 65% of their revenue after one year. Good and great net revenue retention ( source ) Another factor to consider when it comes to achieving these metrics is the cost of acquisition, or CAC. Retention over 50% is considered top quartile.

Retention 109

Retention Conversion Churn Rate B2C 109

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

The Startup Magazine

JULY 21, 2021

Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. Ideally, digital marketers can optimize PPC marketing campaigns so the conversions (sales) from the ad nets more revenue than the cost of the campaign. Is it any wonder they’re essential? Old School But Effective.

Technical Review 147

Technical Review PPC SEM Marketing 147

Startup Professionals Musings

MAY 24, 2019

Yet, in my daily role as an advisor to entrepreneurs and small business owners, struggling to boost revenues, profits, and earnings, I still see too many managers falling back on command-and-control, a focus on weaknesses, and not enough time for people. Change is hard. But these days it’s required and inevitable.

Management 239

Management Technical Review .Net Employee 239

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

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

AUGUST 28, 2019

One 11-year classic study of over 200 companies, detailed in “ Corporate Culture and Performance ,” found that those working on their culture improved revenue by 516%, and increased net income by 755%. Building an ethical business is more than just compliance and meeting legal requirements, and it has big paybacks.

Software Review 192

Software Review Offshore Leadership .Net 192

Berkonomics

FEBRUARY 11, 2021

Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Project your revenues and costs as in the original exercise. Project your revenues and costs as in the original exercise. The post Could you achieve ten percent net income each month?

.Net 62

.Net Forecast Salary Revenue 62

YoungUpstarts

JANUARY 10, 2021

By cultivating loyalty, you ultimately increase profitability and revenue. Net Promoter Score software is one example. And in the world of social media, there’s also a degree of social acceptance involved. ( “What will people think?”). 4 Tips for Increasing Customer Loyalty. But it’s important that you find a way to do it at scale.

Customer 207

Customer Retention Software Review .Net 207

Up and Running

NOVEMBER 3, 2021

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. . It’s important to note that cash flow doesn’t give you your net profit. It’s what you get when you remove your current liabilities from your current assets.

Balance Sheet 81

Balance Sheet Management .Net Metrics 81

The Startup Magazine

SEPTEMBER 22, 2022

You can get immediate feedback on how satisfied your customers are with your services and whether they would recommend you to others by implementing a Net Promoter Score (NPS) system. . By knowing what your customers want, you can create consistent and measurable improvements that result in increased revenue and customer happiness.

Sales 142

Sales Customer eCommerce Social Media 142

Startup Professionals Musings

JUNE 26, 2016

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 $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

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

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

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. The manual calculations to translate market assumptions into costs, volumes, expenses and net return are massive.

Conversion Ratio 368

Conversion Ratio Startup Business Model eCommerce 368

Startup Professionals Musings

JANUARY 18, 2014

You can review all the specifics of this approach in a 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.

Entrepreneur 283

Entrepreneur Startup Angel Investor Technical Review 283

Feld Thoughts

OCTOBER 10, 2011

I’m tired of “Revenue” being referred to as “Income.” For firms, income generally refers to net-profit: what remains of revenue after expenses have been subtracted. . Call the thing at the top of the P&L “Revenue”, not “Income” Rant off. ” Confusing?

Revenue 144

Revenue .Net Salary Entrepreneur 144

ConversionXL

SEPTEMBER 20, 2021

billion in ad revenue in 2020. But you can also accumulate significant exposure and revenue through an organic YouTube strategy. Given that most users abandon apps within 30 days post-installation, high downloads don’t lead to high audience retention, satisfaction, or revenue. Revenue metrics. YouTube generated $19.77

Analytics 134

Analytics Metrics Channel Video 134

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

YoungUpstarts

DECEMBER 1, 2015

With an impressive product lineup of new iPhones, Apple watches, iPads and an all-new Apple TV queued for shipment this week, 2015 is the most successful year of revenue growth for Apple , according to Apple’s CEO Tim Cook. The online retailer Amazon experienced an 18 percent growth of revenue in 2015. percent) to 2014 (21.9

San Diego 100

San Diego Fort Worth Los Angeles Indianapolis 100

Startup Professionals Musings

AUGUST 31, 2019

These negatives have largely overshadowed the potential IPO positives of increased capital for the startup, possible huge increase in personal net worth, broader access to investors, market for their stock, the ability to attract top-notch professionals, and the peer prestige of running a public company.

IPO 210

IPO SEC Prospectus Startup 210

Startup Professionals Musings

MAY 12, 2017

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 161

Startup Angel Investor Technical Review Incubator 161

Up and Running

AUGUST 13, 2014

An Income Statement, also called a Profit and Loss Statement, is a fundamental tool for understanding how the revenue and expenses of a business stack up. Typically, an Income Statement is a list of revenue and expenses, with the companys net profit listed at the end. A line by line breakdown of an income statement.

.Net 100

.Net Balance Sheet Forecast Business Plan 100

The Startup Magazine

JULY 21, 2021

Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. Ideally, digital marketers can optimize PPC marketing campaigns so the conversions (sales) from the ad nets more revenue than the cost of the campaign. Is it any wonder they’re essential? Old School But Effective.

Technical Review 78

Technical Review PPC SEM Marketing 78

Startup Professionals Musings

DECEMBER 20, 2012

You can review all the specifics of this approach in a recent 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 296

Startup Angel Investor Technical Review Incubator 296

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 63

Technical Review Revenue Software Review Campaign 63