Steve Blank

MARCH 31, 2014

Today’s workforce has radically different expectations, brands are losing their power, physical channels are being destroyed by virtual ones, market share is less important than market creation, and software is eating world. As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Austin Startup

MAY 10, 2021

a full 60x trailing twelve month revenues. Companies have increasingly digitized operations, but in silos, said lead director Rich Wong, a partner at Silicon Valley venture-capital firm Accel, an early investor in UiPath. For context, UiPath’s revenue last year was reported at $607 million and grew 81% over the prior year?—?so

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

David Teten

DECEMBER 16, 2015

The most common financial metrics ffVC asks companies to compare vs. budget are: Gross Revenue. Net Income (Loss). Monthly Recurring Revenue (MRR). Net MRR Churn %. Average Revenue Per Account. ff Venture Capital portfolio company. So how do you do it? Identify the metrics that matter. Gross Profit.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

BeyondVC

JANUARY 3, 2019

No matter what economic cycle we go through, Fortune 500 companies need to invest in software.”. Ed Sim, Boldstart Ventures. For the more advanced enterprises who have migrated to the cloud, this will be a year of net new technology and building applications. Fortune December 2019 Investor Roundtable. Enterprise Tech in 2019.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

Both Sides of the Table

JULY 16, 2010

LP’s who invest in funds are typically university endowments, public & private pension funds, insurance companies, large corporations and very high net worth individuals called “family offices.&# To give you an indication of how bad, for example, university endowments are suffering check out this chart.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Austin Startup

NOVEMBER 6, 2017

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. This is true in consumer but it’s also true in enterprise software. This “overnight success” was first financed in 2004.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Cracking the Code

JANUARY 22, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. 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. Cracking The Code.

Software Review 91

Software Review Clawback Sales Salary 91

Both Sides of the Table

MAY 4, 2010

We discussed whether investing in the second largest player in a category makes sense given that Groupon is 10x the revenue, 3.5x But LivingSocial is reportedly doing around $180,000 per day in gross revenue. If this figure is accurate – it’s certainly a very large business even when you look at net revenues.

IPO 236

IPO .Net Venture Capital Strategic Investors 236

SoCal CTO

MARCH 22, 2007

I have to say that it has netted far more than I would have thought. Mobile Internet Apple Facebook ► 2009 (32) ► December (3) Startup Software Developers Startup Software Development – Do Your Homework Be. Weve also found that potential clients find us through LinkedIn.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

Austin Startup

DECEMBER 17, 2017

John Imlay of MSA occasionally took me on road shows with analysts to talk about his new acquisition Peachtree Software. I will always remember his pre-speech pep talk: “Dyer, your entire net worth rides on not screwing this up.” I got the message.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

abovethecrowd.com

NOVEMBER 13, 2012

Wow” moments lead to word-of-mouth viral growth and high net promoter scores. oDesk’s presence increases the number of first time software outsourcers. The supplier not only looks to you as a provider of revenue, but they receive that revenue “net of the fee.” Economic Advantages vs. the Status Quo.

Aggregator 101

Aggregator Marketing Software Review North America 101

Up and Running

JUNE 17, 2019

It breaks down the revenue your business generated and the expenses incurred. When investors look at your business plan , they will use your income statement to assess the level of risk involved in extending credit or venture capital your way. Current (otherwise known as “ short term ”) and long term debt.

Balance Sheet 120

Balance Sheet Small Business Finance .Net 120

Both Sides of the Table

APRIL 25, 2011

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. This team is talented.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

This is going to be BIG.

MARCH 1, 2010

My company was not well executed enough to achieve venture capital financing—and that wasn’t the city’s fault, it was mine. Someone offers you a secure job with lots of responsibility to build some piece of trading software that billions of dollars will run on and thousands of people will use. I was there, too.

New York City 113

New York City New York Startup Burn Rate 113

The Startup Magazine

OCTOBER 14, 2021

TSM: Describe Taxfyle’s product or service in 10 words or less: Richard: Taxfyle is a Service-with-a-Software company that matches taxpayers with licensed CPAs and Enrolled Agents. 5000 list , which lists private American companies based on three-year revenue growth between 2016 and 2019. Last year, Taxfyle ranked No. Magazine’ Inc.

CPA 134

CPA Founder Vertical Cofounder 134

Up and Running

FEBRUARY 12, 2014

The business income statement, also referred to as a profit and loss (P&L) statement, is a useful tool for providing an overview of how your business is doing over time and breaks down the revenue generated by your business and the expenses incurred. Current and long term debt.

Balance Sheet 136

Balance Sheet Small Business .Net Finance 136

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . 645 Ventures released a cap table simulator to help level the playing field. Capital has built a free online tool for founders to calculate their cost of capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Steve Blank

JULY 11, 2016

Jessica Mah , founder of InDinero , provider of accounting software and tax services for small businesses. We were depending on investor funding, but with $60,000 in revenue no one would fund it. . I went to a customer’s office and I watched him use my software. I started working with startups and venture capitalists.

Silicon Valley 120

Silicon Valley Entrepreneur Cofounder Customer Development 120

Up and Running

MAY 15, 2018

However, sourcing enough money to start your new venture can be difficult. From jewelry to dog food to SaaS (software as a service) products, startups are popping up in virtually every field around the world, despite the risks. Make sure to use the latest automation and software technologies wherever makes sense.

SBA 84

SBA Angel Investor Technical Review Startup 84

Both Sides of the Table

APRIL 27, 2010

I didn’t mean to be so insulting and I didn’t mean for the net to be cast so wide that many people wondered whether I was talking about them when I was speaking of “job hoppers.&# I learned a lot from reading the comments. But in these years I learned how to sell software – necessity is the mother of all invention.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

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. Payback Period. Lifetime Value/Cost of Acquisition.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

Ben's Blog

MARCH 24, 2011

Let’s look at public market comparables and venture capital flows to see if we can find a match. Venture capital flows. A basic driver for a private technology market bubble is the over-supply of venture capital into the sector. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

abovethecrowd.com

APRIL 17, 2013

With each hand, a small percentage of the pot is scraped off by the dealer, which in essence becomes the “revenue” for the casino. While casinos use the term “rake,” a plethora of interesting word choices exist which all describe the same thing – keeping a little bit of the revenue for the company that is running the service.

Europe 101

Europe Social Network Technical Review IPO 101

David Teten

JULY 12, 2013

I emphasize that the best PR you can build is through satisfied customers with high Net Promoter scores. ff Venture Capital recently hosted an event in its offices to feature two of its portfolio companies: MovableInk and Parse.ly. Are you trying to build buzz, but don’t have the cash to launch a full-fledged PR campaign?

PR 114

PR Public Relations Startup Technical Review 114

Up and Running

AUGUST 12, 2015

Recently, Palo Alto Software CEO Sabrina Parsons hosted a webinar for our Bcast members on how to use LivePlan to create a better business plan, pitch your idea to investors, and track your business. What is revenue going to look like? I want to have enough revenue to hire a manager. Wondering, can I make expenses? It just is.

Forecast 60

Forecast Video Business Plan United States 60

abovethecrowd.com

DECEMBER 18, 2017

Most large healthcare IT systems are chosen based on one primary objective: revenue management. healthcare system is complex and difficult, and most of these large EHR systems’ number one purpose is to deliver revenue. Our venture capital firm, Benchmark, has made four investments consistent with the “customer-first” theme.

Customer 59

Customer Technical Review Venture Capital Software Review 59

David Teten

JULY 12, 2013

I emphasize that the best PR you can build is through satisfied customers with high Net Promoter scores. ff Venture Capital recently hosted an event in its offices to feature two of its portfolio companies: MovableInk and Parse.ly. Are you trying to build buzz, but don’t have the cash to launch a full-fledged PR campaign?

PR 60

PR Public Relations Startup Technical Review 60

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. Revenue per customer? Revenue, Gross Margin?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Cracking the Code

OCTOBER 10, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. “Just say no” to on-premise deployments The most important part of Software-as-a-Service isn’t “Software” it’s “Service”! Cracking The Code. at 11:09 AM.

Software Review 48

Software Review North America Europe Metrics 48

David Teten

MARCH 5, 2021

What can we learn from the best 40 venture capital investments of all time? 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.”. How do we reconcile these two sets of data?

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

Austin Startup

JUNE 26, 2019

However, we also discovered key challenges we could not overcome with the capital and window of our team. You might notice what’s not on that list above: revenue, investors. No revenue isn’t always a problem for venture-style businesses; no investors + no revenue = challenges for most founders without tremendous self-funding.

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

Up and Running

JUNE 19, 2015

It should be just about 10 minutes long, get you on your way with some tips and advice, but our very first segment this time around is our CEO of Palo Alto Software, Sabrina Parsons, and she had an interview with Alex Blumberg. Another benefit is just to get better terms.

Cloud 60

Cloud Small Business Silicon Valley Media 60

VC Cafe

NOVEMBER 11, 2011

Fifty of its manufacturing activities and 70% of its consolidated revenues derive from global operations. The approved projects involve innovations in the areas of life sciences, healthcare IT, electronics, software and energy. Israel Corporation is Israel’s largest holding company.

Peru 96

Peru Technical Review North America 96

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. Venture Capital Funds VC firms are like seed firms in that theyre actual companies, butthey invest other peoples money, and much larger amounts of it.VC But of coursetheir main job is to build version 1 of their software. investments average several million dollars.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76