Startup Professionals Musings

JUNE 2, 2013

The single most important ingredient of success is not the idea, but having a team in place that has impeccable integrity, can iterate the product quickly, pivot the business model as necessary, and keep costs down in the process. This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

The Next Web

SEPTEMBER 29, 2013

Some metrics that I like to look for are: Lifetime value of a customer, average revenue per buyer, cost of a paying customer, registration rates, etc. For example, if you think the lifetime value (LTV) of your customer is $300 and in reality it is $60 but costs $80 to acquire, you’re going to go out of business. Your company will die.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.

Lean 244

Lean Silicon Valley Startup RSS 244