David Teten

SEPTEMBER 6, 2015

Teten: For a large corporate, what are the advantages and disadvantages of a dedicated fund (possibly with external investors) vs. a 100% on-balance sheet investor? A lot of venture investing is done on the balance sheet, meaning there is no dedicated fund and investing is done more opportunistically.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

Steve Blank

JUNE 23, 2016

It’s a lot easier to get these numbers to look great by outsourcing everything, getting assets off the balance sheet and only investing in things that pay off fast. Capital is returned to these investors through liquidity events (originally public offerings, but today mostly acquisitions). But it’s not over for Intel.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Up and Running

MARCH 9, 2022

Everyday business events such as expansion projects, acquisitions, low cash on hand, increased fixed expenses, increased borrowing, and even an increase in sales can be signs that it’s time to reevaluate your business risk. It costs about $8 for labor and manufacturing to make each unit. . Operating leverage effect (OLE) ratio.

Equity 136

Equity .Net Balance Sheet Operations 136

Both Sides of the Table

APRIL 14, 2012

“it’s smart to use an impending investment valuation to drive a higher acquisition valuation” I would like to amend her statement slightly to read, “it’s smart to use an impending investment valuation to drive an higher acquisition.” Just checked their balance sheet. Christin goes on.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Both Sides of the Table

JULY 1, 2015

“the ecommerce company gained fauxmentum by raising artificially high amounts of venture capital and spent lavishly on customer acquisition despite long payback periods and questionable LTV” __. limit your fixed costs. In the ecommerce arena I see some great companies spending heavily on customer acquisition.

Balance Sheet 150

Balance Sheet eCommerce Venture Capital Acquisition 150

David Teten

DECEMBER 16, 2015

Customer Acquisition Cost (CAC). Paul took on this initiative after realizing how alarmingly little a P&L and Balance Sheet alone can tell you about what’s really happening at a startup. In addition, we typically ask portfolio companies to report on the following non-financial metrics: Universal Metrics.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

Steve Blank

APRIL 8, 2010

They collected information that justified their assumptions about the problem, opportunity, market size, their solution and competitors and the their team, They rolled up a 5-year sales forecast with assumptions about their revenue model, pricing, sales, marketing, customer acquisition cost, etc. It was an exquisitely crafted plan.

Business Model 328

Business Model Business Plan Customer Cap Table 328

The Startup Magazine

SEPTEMBER 10, 2019

Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. This is a classic example of Goodwill: Trello’s accounting statement doesn’t justify their $425 million acquisition, but its strong user community and reputation does. Alpha generation.

Founder 118

Founder Valuation Dividend Startup 118

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”. Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Both Sides of the Table

JUNE 17, 2017

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. For most companies it feels like innovation can only happen by exception and heroic efforts, not by design.

IRR 335

IRR Startup Business Model Agile 335

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 11, 2014

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity). Now let’s cover those nuances I mentioned.

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

Up and Running

FEBRUARY 8, 2016

Here’s what they discovered: They found firms that quickly institute formal mechanisms such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) had higher growth rates in terms of revenues and headcount.

Entrepreneur 60

Entrepreneur Software Review Balance Sheet Partner 60

View from Seed

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. Chewy cost of goods (COGS) includes both the underlying cost of the products sold but also some fulfillment related expenses like freight and packaging. in 2016, to 17.5%

Leadership 214

Leadership .Net Revenue Acquisition 214

Growthink Blog

MAY 30, 2018

Here, a great (and for most mature small businesses, under-utilized) solution is to “strengthen the balance sheet” through an outside capital raise. Then, when deal opportunities present themselves - like strategic partnerships, new hires, marketing campaigns, growth-by-acquisitions, etc.

Balance Sheet 48

Balance Sheet Artificial Inteligence Business Model Acquisition 48

Berkonomics

APRIL 4, 2019

Others worry that we will latch onto individual line items within financial data and engage in inquisitions regarding telephone bills, marketing costs and other tactical line items in detailed financial statements. The answer is that the minimum requirement is to provide an income statement and balance sheet to all shareholders annually.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

ReadWriteStart

JULY 15, 2020

As a unicorn approaches an exit, the balance sheet needs to make sense. Uber is still living down reports of its founder’s past behavior, and California pushed to treat drivers like full-time employees and take on the associated costs. These investors also tell you the founder’s role cuts both ways. Juul’s founder resigned.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

YoungUpstarts

JULY 31, 2015

IBM leveraged this acquisition with the Catalyst Startup Program , which offers free technical services and mentorship to startups. To start, look at your balance sheet and determine where you spend the most money. In 2013, for example, IBM set out to expand its cloud business. Know Your Options.

Small Business 100

Small Business Balance Sheet Cloud Programming 100

Gust

DECEMBER 23, 2011

Similarly, start calling VCs if your customer acquisition costs can only be recaptured over a substantial period of time. Get those pitchbooks ready if your idea is not genuinely defensible except by being the first kid in the pool and creating a network effect, or dominant brand, before others do.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Up and Running

JULY 22, 2014

Balance sheet. Major corporations use pro forma statements to illustrate projected numbers, like in the case of a merger or acquisition, or to emphasize certain current figures. your “cost of sale” or “cost of goods sold” (COGS)—keep in mind, some types of companies, such as a services firm, may not have COGS.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

Growthink Blog

MARCH 21, 2018

But of course no matter the business decision - hiring, firing, marketing and sales, new products, raising capital, growing via acquisition, even flat out selling a business or shutting it down.there is almost always more than one valid, workable, and perfectly fine choice. With your balance sheet? With your marketing?

Balance Sheet 48

Balance Sheet Acquisition Hosting Campaign 48

Berkonomics

APRIL 14, 2012

Others worry that investors will latch onto individual line items within financial data and engage in inquisitions regarding telephone bills, marketing costs and other tactical line items in detailed financial statements. That is one of the many costs of becoming a public entity as many CEO’s have found and dealt with over the years.

Stock Options 81

Stock Options Balance Sheet Stock Common Stock 81

Occam's Razor

MAY 2, 2017

#tearsofpain One way of removing silos and focusing on the entire business is to leverage Acquisition, Behavior and Outcome metrics. A small change I’ll make in this post is that when I recommend the metrics, I’ll follow the Outcomes | Behavior | Acquisition structure throughout this post. Hence that’s the macro-outcome.

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Agile VC

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. Chewy cost of goods (COGS) includes both the underlying cost of the products sold but also some fulfillment related expenses like freight and packaging. in 2016, to 17.5%

Leadership 100

Leadership .Net Revenue Acquisition 100

Both Sides of the Table

SEPTEMBER 8, 2009

Cost – The biggest reason to give serious consideration to whether an MBA is necessary is the cost. They looked at total cost to the student and lost wages and then they plotted the incremental increases in salary that students who graduated got over the course of their careers. What you lose: 4.

NPV 337

NPV Chicago Balance Sheet Database 337

Seeing Both Sides

NOVEMBER 26, 2012

If you have a stronger balance sheet than your competition, you can push off monetization decisions and focus on product-market fit. If you have a larger cash horde than your competition, you can make aggressive hires, attract better talent, perhaps even make acquisitions.

Balance Sheet 42

Balance Sheet Entrepreneur Dilution Portfolio 42

Up and Running

NOVEMBER 12, 2018

With the total cost of each box in hand, calculate a price with at least a 40 percent profit margin, as suggested by CrateJoy. For example, the men’s hair product box might cost $39.95 per month, but if you commit to subscribing for a year, its monthly cost will drop to $36.95. Startup costs. Fulfillment. Milestones.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

VC Cafe

JANUARY 22, 2021

Amazon Corporate Development – Notable acquisitions include Whole Foods ($13.7B), smart doorbell system Ring ($1.2B, 2018) and autonomous mobility technology Zoox ($1.2bn). The company also occasionally invests in startups out of the balance sheet (i.e. The majority of that work is led by the Amazon Corp Dev team.

Technical Review 174

Technical Review Startup Venture Capital Incubator 174

Up and Running

JUNE 25, 2014

There’s limited financial information, a lot of times it’s very limited, there’s limited audit balance sheets, income statements and a lot of times the small business financial statements don’t really reflect how the business is performing. The other thing is that small businesses are much more difficult to underwrite than consumers.

Small Business 89

Small Business SBA Finance Bankruptcy 89

Duct Tape Marketing

NOVEMBER 10, 2015

The question is what is not measuring costing you in terms of wasted money and lost opportunity? Newer tools like Xero and Freshbooks are more “real world” friendly and produce reports that can help you guide your business in ways that balance sheets never will. (I’ve

Metrics 28

Metrics Small Business Analytics SEM 28

Up and Running

OCTOBER 3, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. The solution: PARE shoulders the cost of renovations for young people who do not have the time, knowledge, or money to do it themselves. Pricing : Design your pricing so that will cover your costs and match the market rate.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Eric Friedman

AUGUST 18, 2021

Previously, he was the COO of digital gift card start-up Giftly from its inception in 2010 to its acquisition by Giftcards.com in 2013. The opportunity cost of the money I have not made on crypto is insane because I first was talking about crypto in 2011 as I’ve been in financial services for a long time. That scares me.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Agile VC

DECEMBER 6, 2012

Unlike a startup that might raise equity financing across several rounds all combined in a single balance sheet, VC’s do not simply commingle these funds into a single bucket to be allocated across all the companies in that firm’s portfolio.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Up and Running

MARCH 11, 2015

You should have a good solid executive summary, you should have full financials, and that means a projected balance sheet, P&L and cash flow. That moves into the customer acquisition strategy. This includes again another acronym I’m going to share, CAC, the cost to acquire a customer, the customer acquisition cost.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Software By Rob

NOVEMBER 18, 2008

It’s a recurring revenue stream that can grow far beyond what you would make as a consultant, all the while creating balance sheet value meaning one day you can sell it for stacks of proverbial cash and retire. Outsourcing support will a) cost a good chunk of change, and b) leave you with unhappy customers. at 9:05 am [.]

Software Review 42

Software Review Software Product Salary 42

VC Cafe

JULY 4, 2011

. “The affirmation reflects the resumption of the downward trend in public deficits and debt, the robust outlook for Israeli growth, and a strengthening in the sovereign’s external balance sheet,&# said Purvi Harlalka, director at Fitch’s Middle East and Africa Sovereign Ratings Group. for about $418 million.

Balance Sheet 90

Balance Sheet Acquisition Africa 90

The Equity Kicker

APRIL 15, 2015

This chart (which I saw on Broadstuff and was originally published in the Harvard Business Review ) is from audited company accounts following mergers and acquisitions: …we looked at the value of brands and customer relationships as revealed by M&A data covering over 6,000 mergers and acquisitions worldwide between 2003 and 2013.

Balance Sheet 60

Balance Sheet Merger Customer Product 60