Both Sides of the Table
MARCH 19, 2013
The line of reasoning goes, “Services businesses are not scalable and the market won’t reward this revenue so make sure that third-parties do your implementation or clients do it themselves. We only want software revenue.” If you’re an early-stage enterprise startup services revenue is exactly what you need.
Both Sides of the Table
APRIL 26, 2016
The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. To understand that you need to understand repeat purchase rates and of course that is harder to know in a startup company.
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YoungUpstarts
SEPTEMBER 11, 2016
It’s especially important if you are trying to manage finances and balance cash flows. According to an article published by Forbes, metrics that play a critical role in any startup management includes revenue run rate, average revenue per user, customer acquisition rate, churn rate, and operation efficiency.
BeyondVC
DECEMBER 10, 2009
Secondly, what is most important for me to understand is the expenses and what milestones will be achieved with this first round of funding and whether or not it would be suitable enough to raise the next round of financing. The remainder would go into deferred revenue. Another area that is quite important is churn rate.
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? Is my churn rate below the category average? Example of Baremetrics revenue per user benchmarks.
Seeing Both Sides
OCTOBER 24, 2015
Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%? 2) Your cost of capital is too low.
Cracking the Code
DECEMBER 11, 2015
how many searches are available on Adwords) and what is the quota attainment and churn rate of the sales people as well as their profile SMB online sales (e.g., These teams are typically run on monthly quotas. For this model, I like to understand how scalable the lead gen model is (e.g.,
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