Both Sides of the Table

SEPTEMBER 2, 2009

On a panel that I sat on with Ron in LA in 2008 he stated that there were no circumstances in which the founder should take money off of the table. We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

SoCal CTO

FEBRUARY 25, 2007

As I look at more and more start-ups predicated on viral growth, and at the use of social marketing, its becoming simultaneously easier to understand some aspects of viral growth and still a gap in understanding whats going to be that "hook" that will grab people at the end of the day.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

crowdSPRING Blog

JULY 14, 2013

Berger explains why people talk about certain produces and ideas more than others, why some stories have a greater tendency towards a viral effect and why some rumors are simply more infectious than others. By how much did Gary increase the family revenues that first year? c) $4 million to $50 million.

Viral 93

Viral Small Business Social Media Technical Review 93

This is going to be BIG.

JUNE 19, 2012

I don’t know exactly when the agency to product transfer happened at Buddy, or at what point you can start calling yourself a software company (when service revenues dip below subscription/license revs?), Our current focus is on creating sticky, super viral applications that help users get more out of Facebook and other social media.

Software 105

Software Media Social Media Advertising 105

Startup Lessons Learned

DECEMBER 14, 2009

In a previous post , I covered the three main drivers of growth: Paid, Sticky, and Viral. Let’s look at a viral growth company, like Facebook. If you are building a large, viral, ad-support consumer internet property, you just want to go big! They’re off to cross the chasm. As soon as possible!&#

Customer 156

Customer San Francisco Viral Lean 156

Cracking the Code

MARCH 12, 2010

Given the predictability of SaaS GAAP revenues on a quarterly basis, the fact that the 08/09 projections were unchanged is not a surprise. Given that the revenues are not growing very fast, this means that most of the companies have reduced their sales force and focused on productivity improvement. 1st 2008 with a base value of 100.00

Software Review 63

Software Review Technical Review Cloud Forecast 63

VC Cafe

JULY 15, 2021

The iOS app store officially launched on July 10 2008 with 500 apps. Worldwide mobile app revenues in 2014 to 2023 (in billion U.S. Build virality into the product – it might be counter intuitive to launch your product as “invite only” – after all, the goal is to grow the audience, not to restrict it.

Mobile 190

Mobile Social Media Distribution PR 190

Cracking the Code

MARCH 10, 2008

Monday, March 10, 2008. I found this approach interesting, but it seems to me that gross margin is a more relevant benchmark than revenues, given that the GM of saas companies varies by type of application and size of the company (for example NetSuite went from about 50% GM three years ago to close to 70% today). Cracking The Code.

Sales 79

Sales Software Review Marketing Technical Review 79

Cracking the Code

DECEMBER 1, 2009

1st 2008 with a base value of 100.00 ► 2008. (11). The Bessemer 10 laws of SaaS - Fall 2008 Release. Churchill Club 2008 Top 10 Tech Trends. Happy New Year 2008! Popular Media: the key to viral marketing. The recession created opportunities! Add RSS feed. Subscribe via email. SaaS 13 Index*.

Software Review 48

Software Review Technical Review Cloud Europe 48

Cracking the Code

OCTOBER 9, 2009

This strong recovery has highlighted the resiliency of the recurring revenue model in a downturn as well as the stength of the shift to soaftware-as-a-service and cloud computing. In other words, how much of the decline in revenue growth is due to signing up fewer customer vs lower revenues from each new customer. Add RSS feed.

Software Review 48

Software Review Technical Review Cloud Europe 48

Cracking the Code

NOVEMBER 10, 2009

It is intriguing to see the M&A dynamics in the space, highlighting the interest of tech companies for recurring revenue streams - even SAP announced in their analyst call earlier this month that they were moving from perpertual licenses to five year term licences. on January 1st 2008. 1st 2008 with a base value of 100.00

Software Review 48

Software Review Technical Review IPO Cloud 48

Both Sides of the Table

FEBRUARY 12, 2017

billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million). I began asking around who the smartest people in the online media industry were and two names came up again and again — Jonah Peretti (social & viral content) and Ze Frank (social video).

Media 210

Media Los Angeles Russia Viral 210

Cracking the Code

MAY 25, 2010

A few highlights from the different keynotes and speakers On top of Jason, we also had the chance of having many great speakers at the event and here are a few quotes and notes that I have taken during the different keynotes and panels: Joe Payne, CEO of Eloqua moderated the panel on Revenue Performance Management. ► 2008. (11).

Software Review 74

Software Review Cloud IPO Jordan 74

Software By Rob

MARCH 26, 2015

The interesting part is that my own path moving from consulting to products followed the same steps, as you can see in my product revenue chart from the past decade: Each revenue jump is when I made the move to the next step of the Stairstep Approach. Step 2: Rinse and Repeat.

Bootstrapping 41

Bootstrapping Technical Review SEO Revenue 41

Startup Professionals Musings

AUGUST 24, 2013

It highlights the story of how United Airlines in 2008 paid no attention to social media as Dave’s story of his crushed guitar and poor customer service went viral around the world. Last year, Facebook’s revenue from advertising was over $5 billion, which was a 40% year-over-year increase for the last quarter.

Social Media 271

Social Media Media Startup Reputation 271

ReadWriteStart

APRIL 1, 2020

Further still are the discussions that we may eventually be stuck–similar to the Great Recession of 2008–in a recovery that excludes jobs as we emerge from this cluster. Become a viral success. Speed to market and speed to revenue are critical for startup sustainability. Have a unique value proposition.

Startup 120

Startup SEO Private Equity Venture Capital 120

Software By Rob

MARCH 26, 2015

The interesting part is that my own path moving from consulting to products followed the same steps, as you can see in my product revenue chart from the past decade: Each revenue jump is when I made the move to the next step of the Stair Step Approach. Step 2: Own Your Time.

Bootstrapping 36

Bootstrapping Technical Review SEO Revenue 36

Startup Lessons Learned

APRIL 14, 2009

Lessons Learned by Eric Ries Tuesday, April 14, 2009 Validated learning about customers Would you rather have $30,000 or $1 million in revenues for your startup? All things being equal, of course, you’d rather have more revenue rather than less. And yet revenue alone is not a sufficient goal. More on that in a moment.

Customer 167

Customer San Francisco Lean Hockey Stick 167

Cracking the Code

JULY 6, 2007

I was surprised today when I went through the NetSuite IPO filling (S1) to see that it looked very much like any Enterprise software document - not a single mention of churn or % of recurring revenues. The reason for this difference, from an investor perspective, is that the SaaS model provides far clearer visibility into future revenues.

Software Review 66

Software Review Metrics Valuation Technical Review 66

Cracking the Code

NOVEMBER 10, 2009

Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! 1st 2008 with a base value of 100.00 ► 2008. (11). The Bessemer 10 laws of SaaS - Fall 2008 Release. Churchill Club 2008 Top 10 Tech Trends. Happy New Year 2008! Mind the GAAP!

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

Cracking the Code

JANUARY 22, 2009

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. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

Cracking the Code

FEBRUARY 4, 2008

Monday, February 04, 2008. A few times per year, Bessemer organizes a CxO event for our portfolio companies and we decided to focus our first session of 2008 on Software-as-a-service (SaaS). Your key business metrics are CMRR (Contracted Monthly Recurring Revenue) and cash. The 10 laws of SaaS unveiled at Bessemer CEO Summit.

Software Review 48

Software Review South Korea IPO Portfolio 48

Software By Rob

JANUARY 25, 2012

And the funds came from revenue generated by my portfolio of web applications and websites that I’ve built over the past several years. Depending on your market, the ROI can be better any other traffic source you can find (with viral traffic the most common exception). So I scrambled.

Acquisition 63

Acquisition Software Review Fresno Algorithm 63

ConversionXL

FEBRUARY 29, 2016

In 2008, Seth Godin published a list of things that “every good marketer knows” Among that list was: “Anticipated, personal, and relevant advertising always does better than unsolicited junk.” The same report states that transactional emails also generate more revenue per email than promotional emails.

Email 48

Email Canada Technical Review Software Review 48

Software By Rob

MARCH 26, 2015

The interesting part is that my own path moving from consulting to products followed the same steps, as you can see in my product revenue chart from the past decade: Each revenue jump is when I made the move to the next step of the Stairstep Approach. Step 2: Rinse and Repeat.

Bootstrapping 27

Bootstrapping Technical Review SEO Revenue 27

Cracking the Code

FEBRUARY 25, 2008

Monday, February 25, 2008. The Index reference point starts on January 1st 2008 at 19,187.81 As I was building the spreadsheet, I also included the revenue multiples for this set of companies, both for the trailing 12-month (TTM) and the forward 12-month (FTM). 1st 2008 with a base value of 100.00 ▼ 2008. (11).

Software Review 48

Software Review Technical Review Europe Venture Capital 48

Cracking the Code

NOVEMBER 13, 2008

Thursday, November 13, 2008. 1st 2008 = base 100) This number compares to the Nasdaq reaching a low point of -46% and currently showing a -40% drop year to date. Would the median EV/2010 multiple of CARR (as a surrogate to forward revenue) be a valid approach? 1st 2008 with a base value of 100.00 ▼ 2008. (11).

Software Review 48

Software Review Technical Review Valuation Portfolio 48

thebarefootvc

DECEMBER 16, 2011

The viral nature of social media no doubt aided this growth, as did improvements in the online shopping experience. As the world “stabilized” into a new reality post 2008 crash, there was a realization that there has to be a better way of doing business, that we collectively can no longer sacrifice everything in pursuit of profit.

Technical Review 110

Technical Review India Mobile Hockey Stick 110

Cracking the Code

SEPTEMBER 2, 2008

Tuesday, September 02, 2008. The Deutsche Bank report has a very interesting chart on the topic presenting the Free Cash Flow margins vs. the revenue growth four years post IPO for select software leaders: As you can see, with 20% Free Cash Flow margin and a 50% growth rate, Salesforce is well positioned in the pack! ▼ 2008. (11).

Software Review 48

Software Review Software Technical Review Cloud 48

Startup Professionals Musings

JULY 18, 2012

It highlights the story of how United Airlines in 2008 paid no attention to social media as Dave’s story of his crushed guitar and poor customer service went viral around the world. Last year, Emarketer estimated that Facebook’s revenue from advertising was $3.8 United Airlines is still recovering from that debacle.

Social Media 198

Social Media Media Marketing Reputation 198

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. 1970 – 1995: The Golden Age. Thus began the 5-year dot-com bubble.

Internet 334

Internet IPO Silicon Valley Agile 334

This is going to be BIG.

FEBRUARY 17, 2014

In 2010, I funded his company, Backupify , which has gone on to raise over $19 million in funding and is set to have their best year of revenue to date. In 2008, I went to breakfast with Hilary Mason while I was down there. I can''t guarantee you''ll sell something, win VC dollars, go viral, etc.

Dividend 114

Dividend Viral Community Austin 114

Cracking the Code

DECEMBER 16, 2006

however, public SaaS companies like Concur, Saba, Taleo, LivePerson and Ultimate are growing 50-100% per year and trading at an average 5x trailing revenue multiples (I excluded salesforce leading the pack with 9x!) whereas traditional software companies of this size have a growth rate of less than 10% and revenue multiples of 2-2.5x.

Software Review 48

Software Review Silicon Valley Technical Review Software 48

mashable.com

NOVEMBER 4, 2010

A Y-Combinator startup itself, Optimizely was used by the groundbreaking online Obama campaign in 2008. However, they should be mindful as the brand and revenues grow, free optimization tools can have a negative impact on Total Cost of Ownership. You can use Optimizely even if the thought of coding makes you break out in a cold sweat.

Developer 73

Developer Software Review PHP Social Media 73

Ben's Blog

MAY 15, 2020

Finally, we’ll zoom out and assess the big picture: how various categories of company may be impacted long-term, how this crisis compares to 2008 (and what that means for early-stage founders), and the industries and business models that are now prime for growth. We’re not going to book any revenue for the next 12 months.

Founder 36

Founder Conversion Technical Review Cash Position 36

Startup Lessons Learned

SEPTEMBER 29, 2008

Lessons Learned by Eric Ries Monday, September 29, 2008 Q&A with an actual reader One of my favorite things about having a blog is the feedback I get in comments and by email. Today, I thought Id answer a few questions that came in from a very thoughtful comment from Andrew Meyer. Hes also a blogger, at Inquiries Into Alignment ).

San Francisco 68

San Francisco Lean Continuous Deployment DC 68

betashop.com

OCTOBER 8, 2012

It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages. 90 Things I’ve Learned From Founding 4 Technology Companies.

Technical Review 108

Technical Review Technology Software Review Valuation 108