Agile VC

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The Consumerization of Business Software ? AGILEVC

Agile VC

There’s a couple different forces I see at work: 1) Selling & Customer Acquisition - In the last 5 years, the biggest force in business software was the impact of the cloud as an infrastructure layer and product/service delivery mechanism. companies on user acquisition are increasingly being applied to SaaS companies.

Software 100
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Groupon's S-1: From Zero to Like? Billions in 30 Months ? AGILEVC

Agile VC

3) Groupon’s Business is Like An ATM: Groupon is currently unprofitable on a GAAP basis thanks to acquisition related expenses in 2010 as well as ongoing marketing spend to acquire customers. If Groupon’s growth rate drops by 80% they’ll still be nearly tripling top line sales in 2012. Author howerl.

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Should Apple Buy Hungary?

Agile VC

I had read somewhere that Apple’s cash pile was equivalent to Hungary’s GDP so I tweeted out the suggestion that perhaps an activist shareholder should push an acquisition of Hungary rather than thinking small (e.g. increasing dividends or issuing preferred stock).

Hungary 168
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Chewy S-1: Category Leadership + Conveyor Belt Into Consumers’ Homes

Agile VC

Chewy sells tens of thousands of products from many 3rd party brands, as well as its own private label brands (though latter remains <10% of sales). 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. Annual Net Sales By Customer Cohort.

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When Does Zynga Become a Value Stock?

Agile VC

That being said, unlike a company that has essentially zero user acquisition costs (e.g. Facebook, LinkedIn, Yelp, etc) Zynga has to spend substantially on sales & marketing to acquire players. But even if you back out customer acquisition spend in addition to COGS, Zynga’s profit margins are still over 50%.

Stock 160
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Not Everyone Is “Killing” It: How & When to Admit It

Agile VC

And even acquisitions painted as successes may look very different below the (typically confidential) surface. Don’t shrug off poor sales or user growth, a dysfunctional team, a wave of bad PR, or other challenges confronting the business. Not every startup is going to “crush” their original milestones and financial projections.

Cofounder 188
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Not Everyone Is “Killing” It: How & When to Admit It

Agile VC

And even acquisitions painted as successes may look very different below the (typically confidential) surface. Don’t shrug off poor sales or user growth, a dysfunctional team, a wave of bad PR, or other challenges confronting the business. Not every startup is going to “crush” their original milestones and financial projections.

Cofounder 100