VC Cafe

OCTOBER 23, 2022

” No one questions the importance of revenue, but asking the question enabled us to start thinking on what would be the right metric. Did you know that companies like Airbnb, Spotify and Netflix purposely avoid setting revenue as their North Star Metric? Why is revenue not a good ‘North Star’ Metric?

Metrics 179

Metrics Revenue B2C Portfolio 179

SoCal CTO

MARCH 5, 2007

There are quite a few other Software Development Companies in Southern California working on open source and/or freemium business models. One of his companies - Gluecode - was sold to IBM for a pretty good price. Common revenue streams are consulting, training, support, customization, upgraded versions for corporate applications, etc.

Open Source 150

Open Source Business Model Technical Cofounder Southern California 150

SoCal CTO

MARCH 11, 2010

Part of those questions are around Startup Metrics. This aligns with understanding the the core business model: Get Users (= Acquisition, Referral) Drive Usage (= Activation, Retention) Make Money (= Monetize) (and Lifetime Value is a good one) Of course, that’s a big part of what the investor wants as well.

Metrics 159

Metrics Startup Retention Software Developers 159

The Startup Magazine

JULY 16, 2021

The lesson of the pandemic era is clear, as market conditions change, business models must evolve. Success is not, as you would think, about having stable business models across market conditions. There is one consideration that should be paramount in your thinking about your business model.

Business Model 167

Business Model Aggregator Revenue Analytics 167

Startup Professionals Musings

JANUARY 25, 2023

No matter how well your business seems to have worked for you up to this point, you can be certain that it will need to be heavily transformed for tomorrow’s new world-wide economy and no industry sector boundaries. Most great business leaders, including Jeff Bezos , maintain a key internal team to study and implement the next steps.

Partner 350

Partner Operations Metrics Leadership 350

Startup Professionals Musings

OCTOBER 17, 2018

This can happen through early marketing, independent of whether you have yet delivered a single product, proven your business model, or have any real customers. Here are some of the key specifics for credibility and acceptance as you create and use these metrics: Itemize investment levels from you, insiders, and family.

Advisory Board 199

Advisory Board Technical Review Metrics Business Model 199

A Smart Bear: Startups and Marketing for Geeks

AUGUST 6, 2013

This is the second article in a series on novel ideas for SaaS metrics, which started with The unprofitable SaaS business model trap. Important COC Lesson #1: Three metrics matter, not one The massive size of COC for most SaaS businesses should be a wake-up call.

Metrics 270

Metrics Business Model .Net Revenue 270

VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Benchmarks are typically specific to stage/business model/geo. What should our MRR growth be?

B2C 141

B2C Technical Review Startup Retention 141

Startup Professionals Musings

FEBRUARY 8, 2020

Implement a modern real business model. Use metrics to measure results of marketing initiatives. The risks you want to take are the ones that you planned for in your resources, set up metrics to measure, and manage on an ongoing basis. Risk is more manageable with subscriptions and even freemium pricing.

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Management Entrepreneur Forecast Stock Options 322

VC Cafe

FEBRUARY 21, 2023

Whether you are a B2B SaaS company or a B2C mobile app, knowing how your business stacks up against industry averages can help you make informed decisions and drive growth. In this post, we’ll take a closer look at the benchmarks on conversion, retention and churn for the key business models. Hope you find this helpful.

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Retention Conversion Churn Rate B2C 109

The Startup Magazine

APRIL 22, 2024

When it comes to startups, the focus often gravitates toward acquiring new customers, expanding market reach, and chasing growth metrics. Source: Pexels Data from the US Census Bureau indicated that 5,481,437 new businesses were established in 2023, setting a record.

Retention 112

Retention Reputation Startup Social Network 112

leananalyticsbook.com

AUGUST 19, 2012

The One Metric That Matters. One of the things Ben and I have been discussing a lot is the concept of the One Metric That Matters (OMTM) and how to focus on it. That doesn’t mean there’s only one metric you care about from the day you wake up with an idea to the day you sell your company. Lean Analytics Book.

Metrics 58

Metrics Clickthrough Lean Analytics 58

Steve Blank

OCTOBER 15, 2019

They’ll use government regulation and lawsuits to keep out new entrants with more innovative business models. Metrics are used to manage process rather than creation of new capabilities, outcomes and speed to deployment. are obstacles for innovation.

Government 315

Government Technical Review Acquisition Metrics 315

Steve Blank

SEPTEMBER 5, 2018

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. Every startup is in a race against time.

Lean 335

Lean Burn Rate Startup IPO 335

Steve Blank

NOVEMBER 11, 2022

My good friend Alexander Osterwalder , the inventor of the business model canvas (one of foundations of the Lean Methodology) has written a playbook (along with his associate partner Tendayi Viki ,) From Innovation Theater to Growth Engine to explain how to build and implement repeatable innovation processes inside a company. .

Portfolio 367

Portfolio Business Model Metrics Programming 367

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

So no, this upside-down business model isn’t what a SaaS business should construct. Another way to think about these solutions is that a SaaS business cannot have static fundamental metrics. Leaving the metrics alone, and trying to “grow until profitable” doesn’t work.

Business Model 335

Business Model .Net Revenue IPO 335

The Startup Magazine

JULY 16, 2021

The lesson of the pandemic era is clear, as market conditions change, business models must evolve. Success is not, as you would think, about having stable business models across market conditions. There is one consideration that should be paramount in your thinking about your business model.

Business Model 78

Business Model Aggregator Revenue Analytics 78

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2016

The single most important SaaS metric is retention , because cancellations indicate lack of product/market fit, no matter the cause (price, features, severity of need, duration of need). If it cannot be fixed, it means the business is a failure even if other metrics are stellar. Once you’re scaling (i.e.

Metrics 270

Metrics Retention Revenue Equity 270

Steve Blank

MARCH 31, 2014

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard. Act Like a Startup.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

YoungUpstarts

AUGUST 24, 2017

Subscription business models have been around for a pretty long time, but thanks to modern technology, this model has evolved from milk or newspapers delivery to a versatile eCommerce experience. As a starting entrepreneur, you might wonder: why on earth would I want to start a subscription (box) business? Conclusion.

Churn Rate 149

Churn Rate eCommerce Business Model Bootstrapping 149

Startup Professionals Musings

AUGUST 13, 2013

Within the startup realm, there is a big difference between having an innovative product versus an innovative business. Some startups have a new technology, but stick to a tried-and-true business model. Others take an existing product, and give it new life with a creative business model. Marty Zwilling.

Business Model 231

Business Model Product Metrics Global 231

Steve Blank

OCTOBER 15, 2020

We built up a system to produce a certain type of military power at a time when that whole business model is being disrupted and undermined — much as Blockbuster Video’s business model was undermined by Netflix and Apple. Disruptive Technology. And we buy new things more regularly.

Technical Review 361

Technical Review Artificial Inteligence Technology United States 361

Startup Professionals Musings

JANUARY 22, 2021

How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question. Word of mouth is not adequate for marketing and sales.

Business Model 414

Business Model Angel Investor Bootstrapping Revenue 414

Startup Professionals Musings

JUNE 22, 2016

That should make you wonder - how do you measure traction in a metric? According to most experts , business traction is evidence that somebody really wants your product. It’s business momentum, independent of whether you have a product delivered, proven the business model, or significantly penetrated the opportunity.

Metrics 143

Metrics Advisory Board Startup Lean 143

Startup Professionals Musings

DECEMBER 27, 2019

In my view, every startup in today’s world would do well to adopt a management system with the same key objectives: Start with a customer-obsessed business model. Incorporate AI-powered data and metrics systems. They help hiring managers raise the bar for every interview.

Global 308

Global Marketing Technical Review Algorithm 308

Steve Blank

NOVEMBER 16, 2009

In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers? What metrics do we use to see if we learned enough in Customer Discovery ? I gave my boilerplate answer, “I’m a product guy and I tend to invest and look at deals that have measurable revenue metrics.

Customer Development 219

Customer Development Web Developer Customer 219

Steve Blank

MARCH 26, 2019

The class was unique in that it was 1) team-based, 2) experiential, 3) lean-driven (hypothesis testing/business model/customer development/agile engineering). When we started this class, the concept of Lean (business models, customer development, agile, pivots, mvp’s) was new to everyone. Class Velocity/Depth.

Lean 248

Lean Business Model Balance Sheet Video 248

Up and Running

SEPTEMBER 19, 2018

Write your business plan and develop your business model with this in mind so you can avoid these issues. . You can choose from a few different types of business plans depending on your needs. If you’re seeking investment, you need a traditional business plan. Milestones and metrics. Be specific.

Business Plan 154

Business Plan Technical Review Forecast Software Review 154

VC Cafe

MARCH 1, 2024

Eliminating middlemen in healthcare – from using AI to automate repetitive human jobs to exploring new and better business models for providing care. A lightweight “agent” with access to logs and metrics can, to start, retrieve relevant information (e.g. and generate a post mortem.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

The Startup Magazine

MAY 31, 2022

Freed received the first scholarship created from a sustainable-business model by the collaboration of EALgreen, WW Grainger, Inc. EALgreen’s unique and innovative mission takes on the problem of industrial waste by transforming surplus inventory into college scholarships. As an immigrant student from Argentina, Ms.

Founder 119

Founder Argentina Chicago Switzerland 119

Startup Professionals Musings

APRIL 21, 2023

It starts with a vision, but benefits quickly from a structured process of idea generation, evaluation, prototyping, customer feedback, and success metrics. Business risks are not just development risks. Once a new product is launched, a key metric is the ratio of new product sales to overall sales. Set milestones and meet them.

Intellectual Property 343

Intellectual Property Metrics .Net Social Network 343

SoCal CTO

OCTOBER 8, 2009

A post by Fred Wilson pointed me to Dave McClure's Startup Metrics presentation. Normally, when I am talking to the founder of any startup trying to figure out what they need to do, one of the things I always try to do is understand their business at its core. You only build what you need to prove that model.

Metrics 225

Metrics Startup Retention Acquisition 225

Startup Professionals Musings

APRIL 20, 2015

How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question. Word of mouth is not adequate for marketing and sales.

Business Model 120

Business Model Angel Investor Startup Bootstrapping 120

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Business Model. Expenses?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Startup Professionals Musings

MAY 29, 2019

A platform is a business model and capability that can be accessed and customized by external users. Institute deep metrics measuring all aspects of the customer experience. With each outside participant, the platform grows stronger and smarter, and works better for internal users as well. Accept no excuses.

Artificial Inteligence 222

Artificial Inteligence Agile Technical Review Demand 222

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 10, 2013

This is the fourth article in a series on novel ideas for SaaS metrics, which started with The unprofitable SaaS business model trap , COC: a new metric for cancellations , and The mistake of 1/c in LTV. Its tough for a growing SaaS business to ascertain whether or not it’s truly profitable.

Metrics 238

Metrics Revenue Flash Later Stage 238

Up and Running

AUGUST 21, 2018

So, it’s time to fix the traditional business plan and replace it with a planning process that works. Lean Planning is a faster and better business plan solution. Lean Planning is a 4-step process that helps you discover a business model that works and manage a company successfully. Your business strategy.

Lean 134

Lean Forecast Software Review Business Plan 134