Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 225

Silicon Valley IPO Technical Review Venture Capital 225

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. SaaS 13 Index Valuation.

Software Review 63

Software Review Technical Review Cloud Forecast 63

Agile VC

NOVEMBER 6, 2013

So their revenue figures, pre IPO financing and ownership, and other info is all widely available. If this were a math class, I’d just say the proof is evident but if you want some data on Twitter’s 2013 YTD revenue here you go. Twitter’s IPO has garnered a ton of attention in the tech and popular press.

IPO 194

IPO Aggregator B2B Internet 194

www.pakman.com

SEPTEMBER 27, 2012

At that scale, you can reach billions of dollars in revenue. Much of the valuations around the consumer web are rationalizing, and because of that, investors are once again focused on understanding business models. But they do $50B in revenue. Share this: Tags: consumer web , social media , social web , traffic. David Pakman.

Social Media 47

Social Media Vertical Advertising Distribution 47

Venture Chronicles

MAY 26, 2010

At this point it’s all paper valuation because the stock isn’t liquid so achieving an outcome is a function of executing on the business to achieve a next round of funding or selling it. I’d be willing to bet that more investors lose a great amount of aggregate capital here than at any other stage.

Lean 40

Lean Early Stage Valuation Startup 40

betashop.com

OCTOBER 8, 2012

From the start we said that we would never make a decision as to what features to build or what products to sell based on revenue alone, rather we would focus on things that make our customers smile and by doing so lots and lots of revenue will fall out over time. Never, ever, choose your investors based on valuation.

Technical Review 108

Technical Review Technology Software Review Valuation 108

ithacaVC

SEPTEMBER 20, 2011

In “VC world” Rule 409A is best known for providing a safe harbor for private company valuations, and in particular the setting of strike prices for employee stock options. If the company conducts an outside independent valuation, then, under 409A, the burden is on the IRS to prove that the valuation was not reasonable (i.e.,

Liquidation Preference 49

Liquidation Preference Common Stock Stock Options Valuation 49

techcrunch.com

FEBRUARY 19, 2010

According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. e.g. invest $2 mil and expect a $60-$100 mil valuation for exit. A lot of the stats weren’t surprising. Add to this that 72.7% just my 2 cents.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

pandodaily.com

NOVEMBER 29, 2012

But the angels who’ve staked their funds on spreading bits of money all over the Valley are increasingly anxious that only 20 percent of their deals — in aggregate — will get the chance to keep going. Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93

Hippoland

MARCH 5, 2017

In other words, say you’re looking to close $500k, you will need enough serious investors such that should they all invest, they would invest approximately $1m in aggregate. Also, if you get a term sheet with a valuation that is much lower than you’d hoped / anticipated, this is not the end of the world.

Term Sheet 48

Term Sheet Valuation Later Stage Aggregator 48

K9 Ventures

OCTOBER 10, 2017

Typically, Pre-Seed rounds are less than $1M in aggregate capital raised. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). 6M-$15M used to scale customer acquisition and revenue). It used to be that a company could go public when it hit $20M in revenue.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Cracking the Code

FEBRUARY 4, 2008

T he response rate has been overwhelming and we ended up with 40+ companies and 80+ attendees, most of them CEOs and CxOs of leading public and private saas companies representing around 80% of the revenues of the SaaS industry in 2007. Your key business metrics are CMRR (Contracted Monthly Recurring Revenue) and cash. My Investments.

Software Review 48

Software Review South Korea IPO Portfolio 48

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

Up and Running

DECEMBER 9, 2014

Two, revenue. Many business owners today really think of financials as being about the past, how much revenue have we had, how much cost did we have. Inaudible 00:27:51] leading indicator to help you know where your revenue will be over the coming weeks and months but you can actually apply the same concept on the cost side as well.

Small Business 95

Small Business Finance Forecast Metrics 95

Cracking the Code

JANUARY 28, 2008

Eloqua is bringing this revolution to the B2B marketers by providing on-demand applications and best-practice expertise for B2B marketers to execute, automate and measure effective marketing programs that drive revenue. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. My Investments. anecdotes.

Software Review 48

Software Review Technical Review Los Angeles Europe 48

techcrunch.com

OCTOBER 13, 2012

He is on the board of the Angel Resource Institute, and is a partner with Montlake Capital (a late stage growth capital fund) and with Revenue Capital Management (a royalty based lender). When you aggregate all of the data, these angel investors (across the U.S. He’s c0-authored two books and many academic articles.

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

Rob Go

JANUARY 16, 2013

At the time, I was thinking generally about the concept of aggregating demand for products and local services, and just hearing the word “Groupon” piqued my interest. Today, it was reported that Lynda raised $103M after bootstrapping itself to over $100M in revenue. Really impressive.

Seed Stage 38

Seed Stage Chicago Aggregator Bootstrapping 38

Austin Startup

DECEMBER 20, 2010

The source, size and valuation when funding determines how big of a company you’re claiming to build. revenue) and innovation that large entertainment, media and retail clients will buy. Some started with funding and some were bootstrap. Q: Only a small fraction of social status messages (like tweets) get viewed.

Curation 118

Curation Austin Cofounder Ruby 118

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

abovethecrowd.com

JUNE 2, 2021

Also, take a look at this critically important data point , also aggregated by Professor Jay Ritter. The punchline of Chris’ argument is in the highlighted box, where he argues Procore is better off (having done an IPO and “as a result” of choosing the IPO), because Procore ended up with a valuation the day after the IPO of 20.5X

IPO 82

IPO Customer Matching Silicon Valley 82