Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! Those with strong business models suddenly stand out when the tide goes out. I said that at the Founder Showcase, too. The fact that today’s Internet bubble does not represent all companies does not disprove its existence. and profits!

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

MAY 23, 2012

In an over-funding environment companies are encouraged to eschew revenues in a land grab to acquire eyeballs, clicks, page views or whatever other vanity metrics give VCs the false comfort that they’re sitting on a gold mine. The opportunity to transact at the point of purchase increases the sheer number of revenue opportunities.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Both Sides of the Table

FEBRUARY 7, 2011

When we have our internal debates I use some form of the following argument, “Look, I can’t tell you with absolute certainly what the right revenue model will be that will make this a large company one day. As you know, one of the primary revenue models of Twitter today is “promoted Tweets&# based on hashtags.

Entrepreneur 330

Entrepreneur Tunisia Egypt Iran 330

Both Sides of the Table

SEPTEMBER 16, 2009

This is especially problematic in the Web 2.0 / Freemium world where too many company build their business models around trying to build massive scale of free customers and then convert a small share to low monthly payments. We found that at the low end there wasn’t enough revenue to make it worth our while. Who else?).

Startup 389

Startup Early Stage Demand Channel 389

Both Sides of the Table

SEPTEMBER 12, 2010

The actual investment professionals (partners) are too busy to call companies that they’re interested in so they basically outsource it. But how can you really outsource judgment to young, smart people who have often never worked in businesses?

Programming 294

Programming Entrepreneur Private Equity Equity 294

Both Sides of the Table

FEBRUARY 17, 2010

Apple wants to take a major share of the revenue. Apple is a channel, not a business model – I see too many companies that are building iPhone App companies. iPhone is not a business model unless you’re Apple. And single channel businesses are vulnerable to the vagrancies of the market place.

Flash 326

Flash Mobile Application Development Cloud 326

Both Sides of the Table

FEBRUARY 3, 2011

What is the mix of revenue between ads, subscriptions, digital downloads & ecommerce. My favorite quote of the show, “Gregg, what’s the mix of revenue types?&# JibJab doesn’t do ad revenue at all. In 2005 they realized that this business was going to evaporate over night with the introduction of YouTube.

Viral 303

Viral Investment Bankers Video Business Model 303

Both Sides of the Table

MARCH 1, 2011

Of course, monetization of search became one of the best business models in the history of business. After AltaVista, Mike spent a year doing business development for USA Networks ( now IAC – Interactive Corp ). Part 2/3 of Interview: Mike Joins Quigo as CEO, Sells it to Aol for $340 Million [ Minutes: 13 – 30 ].

Semantic 302

Semantic Acquisition Valuation Angel Investor 302

Both Sides of the Table

MARCH 3, 2013

But while universities are developing online content they are not fundamentally disrupting leaning because the method of delivery is not a new business model. New company in Boston with a model called “royalty capital.” ” No royalty paid until there is revenue. Then there is a royalty rate.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Both Sides of the Table

JUNE 29, 2011

If they hit a product / market fit (meaning you suddenly see a massive uptick in usage and/or revenue) then these companies need to go “fat.&# You can’t scale a large business quickly on your $500,000 alone. I believe that most companies can exist in the experimentation mode for 3-4 years. They should start “lean.&#

Venture Capital 296

Venture Capital Software LP Early Stage 296

Both Sides of the Table

JUNE 12, 2010

-Company grew by more than “400% each year” for past few years [assume growth metric = revenues]. Competition: Chegg (has raised $144 in debt and equity)—estimated by Steven Carpenter ( TechCrunch ) to be 10x more unique visitors than BookRenter (during peak book renting seasons) with nearly $140mm in revenues for 2010.

Venture Capital 217

Venture Capital Los Angeles Oakland Asia 217

Both Sides of the Table

FEBRUARY 14, 2016

forward revenue for SaaS businesses when in the years before it had been less than 5x. Just as with the late 90s there is no new “business model” that defies the laws of gravity. As I’ve pointed out previously, this is perfectly captured by Joe Floyd here tracking SaaS multiples over time.

Valuation 150

Valuation Down Round Startup Later Stage 150

Both Sides of the Table

MAY 7, 2011

As an example, Joel says that there is a chief revenue officer who is solely responsible for bringing in revenue to StackExchange. He is responsible for bringing in revenue from advertising and their careers offering. The original business model for StackOverflow was to help employers find good programmers.

Software Review 285

Software Review Software St. Louis API 285