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Recurring Revenue is Magic

Seeing Both Sides

In 1998, Yom Kippur fell on September 30th. As a result, the full revenue for each deal was recognized in that quarter as soon as the software was shipped. This allowed our revenue to skyrocket from $1.8 But the downside to our business model was that we did not have hardly any recurring revenue. . million to $22.5

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Debating the Tech Bubble with Steve Blank: Part I

Ben's Blog

If they have, then we should be able to see some evidence that the dominant public technology companies are moving towards bubble valuations. Apple’s valuation is now a case for business historians to discuss because I don’t think there are modern precedents. Ex-cash it’s 13.5. Horace Dediu, Asymco.

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New Rules for the New Internet Bubble

Steve Blank

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 334
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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

” Here’s the summary of his track record (excerpted from the Fast Company article): Forefront — IPO’ed in 1995 by CBT — CBT stock fell 85% in 1998 and prompted class-action lawsuits. GroupOn’s engine that turned capital into revenue growth was a form of force-feeding rather than building a product).

IPO 240
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It’s Morning in Venture Capital

Both Sides of the Table

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. In 1998 there were around 850 VC funds and by 2000 there were 2,300. In 1998 it was 150 million, 1999 250 million and by 2000 it had crossed 350 million. The Funding Problem.

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Entrepreneur Success: Key Factor is Thinking Long-Term

Growthink Blog

For a public company, the stock price often reflects short term revenues and profits. Importantly, simply building your revenues and profits (particularly just in the short-term) are not a perfect indicator of the value of your company. monthly, quarterly, annual) goals for metrics like revenues and profits. You should.

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Capital Market Climate Change

Ben's Blog

You probably thought that valuations would be roughly the same as they were the last time you raised money. Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/31/1998: 30.8. But they most certainly are not.