Both Sides of the Table

JULY 29, 2010

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Do it early.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

NOVEMBER 4, 2010

This is important because the customers they serve (the red line) demand a product that meets their complex requirements. When new companies enter the market they really have no chance to initially unseat the incumbents because the performance gap is too large and the costs / time of catching up too unachievable. So what did happen?

Vesting 376

Vesting Framework Revenue Technology 376

socialmatchbox.com

OCTOBER 23, 2010

If you have a friend who is a recruiter then ask them to tell you what they recommend that will not cost anything. This means considering what the opportunity cost for working on a high risk venture is relative to other things they can spend their time on. If they own a Mac Book Pro that may cost around $1,800 bucks (new).

Part-Time VPE 41

Part-Time VPE Sweat Equity DC Washington 41

Steve Blank

MARCH 18, 2011

Dot.com Bubble ( 1995-2000): “ Anything goes” as public markets clamor for ideas, vague promises of future growth, and IPOs happen absent regard for history or profitability. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 334

Internet IPO Silicon Valley Agile 334

Up and Running

MAY 16, 2016

percent in 2000 to 19.6 There are also societal and political factors at play including a growing acceptance among physicians of the practice of home care, as well as pressure to alleviate the demands placed on hospitals and an overall desire to find cost efficiencies in the health care system. “In percent by 2030.

North America 95

North America United States Technical Review America 95

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 115

Retention Customer Developer Programming 115

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 112

Retention Developer Customer Programming 112

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 105

Retention Customer Developer Programming 105

ConversionXL

JUNE 5, 2014

It’s too bad, because a report by local & small business locator, Manta.com found that 61% of the small businesses surveyed indicated more than half of their revenue comes from repeat customers. In a 2000 study found 68% of customers stop doing business with a company due to feeling like the company was indifferent towards them.

Retention 98

Retention Customer Developer Programming 98

Seeing Both Sides

JULY 11, 2013

Typically you want to see a 3x ratio between the contribution margin per rep (factoring in the lifetime value of the customer, or LTV) and the cost per rep to acquire that customer, fully loaded (i.e., customer acquisition cost or CAC). To achieve friction-free revenue (and who doesn''t want friction-free revenue?),

Sales 50

Sales Technical Review Software Review B2B 50

ReadWriteStart

SEPTEMBER 24, 2019

Below are the mistakes that have cost aspiring entrepreneurs a huge amount of money. Ask yourself these questions: What should I sell to meet the demands of buyers? Does the photo look like something taken on a mobile phone from 2000? Make sure not to add any unexpected cost at the last minute.

Startup 124

Startup eCommerce Audience Widget 124

abovethecrowd.com

JULY 10, 2014

I find it surprising that a finance professor like Damodaran did not consider the impact of price on demand. The relationship between price and demand is well understood, and while Damodaran may not have the numbers he would need to calculate Uber’s specific price elasticity , let me assure you that it is high. Different Economics.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Austin Startup

AUGUST 20, 2017

Can you acquire them at a sustainable cost? Is there a development step that you must take to fulfill demand for a particular use case, and, if so, how does that cost get absorbed? Not that you should make that a habit, but if you do get away with it, make sure you understand how it affects your cost model.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Berkonomics

JANUARY 17, 2019

If you discover and become convinced that your vision is flawed, or the product impossible to create within cost and time expectations, or the demand impossible to quantify, or revenues never close to plan, then it would certainly be time to rethink the plan and product. Could you pivot to save the company?

Incubator 48

Incubator Angel Investor Venture Capital Reputation 48

Berkonomics

JANUARY 17, 2019

If you discover and become convinced that your vision is flawed, or the product impossible to create within cost and time expectations, or the demand impossible to quantify, or revenues never close to plan, then it would certainly be time to rethink the plan and product. Could you pivot to save the company?

Incubator 48

Incubator Angel Investor Venture Capital Reputation 48

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2017

There’s also an armed globally-dispersed Sales and Support teams, so we’re selling to our 70,000 existing customers as well as thousands of new customers per month, which means we’ll end up adding more new revenue in one month than a small company will take in over a whole year. The tradeoff, however, is predictability.

Government 223

Government Startup Cofounder Technical Support 223

Cracking the Code

NOVEMBER 13, 2008

Fifteen CFOs participated - about half of them from Bessemer portfolio SaaS companies (Cornerstone On Demand, Intacct. It is also intriguing to see that the market bottom was reached only two years after the start of the decline for the 1929, 1973 and 2000 crises, so we might need another year before the market reaches it lowest point.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Ben's Blog

OCTOBER 29, 2020

The laws of supply and demand, and marginal pricing, withstand the test of time. Demand matters: IPOs are a bull market product Gauging demand for an IPO can be difficult, in part because so many IPO order books are over-subscribed. The tl;dr: It’s Economics 101.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Berkonomics

JANUARY 12, 2012

And if the vision of the entrepreneur is flawed, or the product impossible to create within cost and time expectations, or the demand impossible to quantify, or revenues never close to plan, then it is time to rethink the plan and product. Email readers, continue here.]

Incubator 59

Incubator Angel Investor Venture Capital Demand 59

Steve Blank

SEPTEMBER 10, 2009

With that implicit assumption, startups hire a VP of Sales with a great rolodex and call on established mainstream companies while marketing creates a brand and buzz to create demand and drive it into the sales channel (web, direct salesforce, etc.) After twelve months Handspring’s revenue was $170 million. End result?

Customer Development 203

Customer Development Developer Customer Silicon Valley 203

ReadWriteStart

NOVEMBER 16, 2010

Being enterprise scale means that your representatives have regular dialogue at CXO or at least VP level with Global 2000 accounts are they are bringing in millions of revenue from those accounts every year. You have to do this; addressing real customer needs releases revenue dollars that you need to survive.

Software 127

Software Startup Architecture Bootstrapping 127

Seeing Both Sides

AUGUST 3, 2012

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. The first year of revenue (1999) was $4 million – a remarkable achievement. Market Cap.

Distribution 49

Distribution Lean Massachusetts Cofounder 49

Both Sides of the Table

FEBRUARY 17, 2010

I was living in Europe in 2000 when the first WAP phones (Wireless Access Protocol) were introduced. They therefore have large cost bases and have to pass on those costs to you. - But the trade-off in terms of flexibility and costs were enormous. Apple wants to take a major share of the revenue. And that Palm Pre.

Flash 326

Flash Mobile Application Development Cloud 326

ConversionXL

AUGUST 18, 2013

Only 25% of the Alexa 2000 uses a CDN. Amazon reported already in 2006 that they got 1% revenue increase for every 100ms of improvement. What will a 1-second delay cost you? Tagman has a conversion loss calculator so you can work out how much revenue you could gain by speeding up your site. They have it all. Conclusion.

Conversion 131

Conversion Caching Hosting Analytics 131

BeyondVC

NOVEMBER 17, 2006

According to the S-1 filing: Salary.com is a leading provider of on-demand compensation management solutions. From April 2001 through June 30, 2006, we achieved 21 consecutive quarters of revenue growth. In fact, during the last 3 fiscal years for the company, it did $6.4mm, $10mm, and then $15mm in revenue. million, $0.9

IPO 60

IPO Investment Bankers Demand Revenue 60

YoungUpstarts

DECEMBER 28, 2015

First, your average human today is inundated with over 2000 outbound marketing interruptions per day. Second, it has become far more convenient and cost-effective to learn about something new (or to shop) using the internet, versus attending a day-long seminar at the Marriott or flying to a trade show in Las Vegas.

Asia 100

Asia Las Vegas Marketing Technical Review 100

Hearpreneur

NOVEMBER 19, 2021

These businesses were helping people straighten their teeth at a much lower cost and with less pain than traditional alternatives such as braces. If manufacturers can increase productivity , they can produce more without increasing costs, then they are more globally competitive. Photo Credit: Alex Dask. Photo Credit: Hayley Albright.

Entrepreneur 147

Entrepreneur Software Review LLC Web Development 147

abovethecrowd.com

FEBRUARY 27, 2019

Unfortunately, either information asymmetry or physical distances and the resulting distribution costs can both cut against the economic advantages that would otherwise arise for all. In 2000, Eric Baker and Jeff Fluhr founded StubHub , a secondary ticket exchange marketplace. billion of GSV (gross services revenue) across 2.0

Internet 88

Internet Matching Vertical Hosting 88

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. I have a proposal written up including full cost and revenue projections. Once you’ve done that – then.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

www.chubbybrain.com

SEPTEMBER 28, 2011

spent $20 million to get back to the same revenue that I had when I was CEO. created a vastly higher cost structure; I had 80 people mostly on base salaries under $100,000 and was bringing in revenue at the rate of $20 million annually. spent $20 million to get back to the same revenue that I had when I was CEO.

Cofounder 89

Cofounder Startup Technical Cofounder CTO Hire 89

Both Sides of the Table

DECEMBER 5, 2010

billion in annual subscription revenues not including advertising or eCommerce). This is an awesome trend and will further lower the cost of startup development. In April of 2000 there were fears that the AOL / Time Warner merger would create a monopoly on the Internet.

Social Network 318

Social Network Networking Internet Technical Review 318

www.paulgraham.com

APRIL 28, 2010

We chargedquite a lot for our software—about $140 per user per month—butit was at least a year before our revenues would have covered evenour paltry costs. It costs not justthe time of the actual meeting, but the time getting there and back,and the time preparing for it beforehand and thinking about itafterward.

Bootstrapping 77

Bootstrapping Term Sheet Founder Startup 77

Both Sides of the Table

FEBRUARY 14, 2016

I’d like to explain as best I can my opinion on what is going on because most of what I hear from entrepreneurs is not only wrong but is reminiscent of what I heard in 1997-2000. The Laws of Supply & Demand. The most basic chart of microeconomics is a supply & demand curve. What is the True Sentiment of VCs?

Valuation 150

Valuation Down Round Startup Later Stage 150

BeyondVC

DECEMBER 7, 2005

Frictionless sales means reducing the pain for customers to adopt and use a service/product and consequently reducing the cost of sales and marketing to get a customer and generate revenue. Ultimately what you want is sales leverage where every $1 you spend on sales and marketing equals multiples of that in terms of revenue.

Sales 60

Sales Java Open Source Software Review 60

mashable.com

SEPTEMBER 22, 2008

endeve – Issue invoices, manage clients and check revenues all in one place. Nuospace – On demand collaboration software that provides online document management, allows you to edit pages in your browser, and offers tools to engage your colleagues. Invoice Journal – Free invoicing program.

Software Review 78

Software Review Social Media Social Network Software 78

www.chubbybrain.com

SEPTEMBER 28, 2011

spent $20 million to get back to the same revenue that I had when I was CEO. created a vastly higher cost structure; I had 80 people mostly on base salaries under $100,000 and was bringing in revenue at the rate of $20 million annually. .”). During this year they. deprecated the old feature-complete product (ACS 3.4)

Software Review 79

Software Review Startup Technical Review Vesting 79

Ben's Blog

MAY 24, 2021

There are a number of trends concerning IPOs and capital formation to note: First, the raw number of IPOs has declined significantly: From 1980-2000, the US averaged roughly 300 IPOs per year; from 2001-2016, the average fell to 108 per year. 1999-2000 51.6% Time Period IPO Pop* 1980-1989 6.1% 1990-1998 13.3%

SEC 36

SEC Accredited Investor IPO Technical Review 36