Cracking the Code

FEBRUARY 23, 2011

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. It would have been easy to explain the difference by changes in the 2010/2011 revenue growth projections but unfortunately that is not the case. revenues while large caps are trading at 6.4x. SaaS 13 Index Valuation.

Software Review 101

Software Review Technical Review Valuation Europe 101

Startup Professionals Musings

JANUARY 22, 2020

Thus they don’t live or fly above the clouds. Since they know that most startups fail, their target return is ten times investment, so be prepared to talk cost vs revenue and product life. Set a realistic valuation for your startup to attract angels. Successful valuations above $5M are rare for startups.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Cracking the Code

NOVEMBER 10, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Unveilling of the Bessemers 10 laws of Cloud Computing and SaaS - Winter 2010 Release. The Cloud computing stack is currently defined by three levels: SaaS, PaaS, and IaaS. Tuesday, November 10, 2009. Mind the GAAP!

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

YoungUpstarts

DECEMBER 14, 2016

Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation. Ideally, that would mean a cloud based solution to facilitate sharing while providing control over who has access to that critical data. Books and records. Electronic storage.

Acquisition 100

Acquisition Intellectual Property Technical Review Due Diligence 100

Gust

JULY 23, 2014

So even if my own mother asked me to meet with you, and you were pitching me a biotech opportunity for a $10 million investment at a $90 million valuation, I might take the meeting, but it wouldn’t be particularly useful for either of us. Now comes the really tricky part: getting me to review all that stuff you just neatly uploaded.

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

Cracking the Code

OCTOBER 1, 2020

The company’s success has been largely driven by its developer-led freemium model, going from Series A funding to a valuation of $2.6B It took us longer to get into revenue, but the freemium was a real accelerator for us. A year in, we had great usage and no revenue. in just 30 months.

Early Stage 62

Early Stage Open Source Development Team Review Security 62

Cracking the Code

MARCH 12, 2010

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. As we are entering a new year, I thought it would be interesting to publish every quarter an update on the state of the 13 public SaaS/Cloud companies in the Index. Detailed SaaS Spreadsheet (Valuation and CAC benchmark).

Software Review 63

Software Review Technical Review Cloud Forecast 63

VC Cafe

JULY 27, 2021

The advancements in infrastructure, including the launch of 5G networks , new Nvidia chips with nearly 100% increase in GPU power, Lidar sensors embedded in consumer smartphones, to cloud gaming becoming widely available with offerings from Google, Amazon, Microsoft, etc. in revenue in five years from player spending. 2) VR adoption.

Cofounder 183

Cofounder Mobile Revenue Cloud 183

Steve Blank

JUNE 15, 2011

A tech bubble is the rapid inflation in the valuation of public and private technology companies that exceeds their fundamental value by a large margin. Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation.

Silicon Valley 327

Silicon Valley Stealth Valuation Mississippi 327

Seeing Both Sides

JULY 21, 2014

As a result, the full revenue for each deal was recognized in that quarter as soon as the software was shipped. This allowed our revenue to skyrocket from $1.8 But the downside to our business model was that we did not have hardly any recurring revenue. . I later came to realize that r ecurring revenue is magic.

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Ben's Blog

JUNE 18, 2011

If they have, then we should be able to see some evidence that the dominant public technology companies are moving towards bubble valuations. Apple’s valuation is now a case for business historians to discuss because I don’t think there are modern precedents. Ex-cash it’s 13.5. Horace Dediu, Asymco.

Technical Review 76

Technical Review Software Review Valuation Internet 76

Agile VC

OCTOBER 1, 2013

Facebook’s IPO was obviously a debacle, and in the private investment sphere valuations from the seed through late stage have declined for the most part from their peaks in late 2011 through early 2012. IPO Market Is Strong - All the companies I just mentioned in cloud computing have gone public within the last 12 months.

IPO 147

IPO Cloud Valuation Mobile 147

Cracking the Code

DECEMBER 1, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Cloudonomics and 2010 Planning for your SaaS and Cloud Computing business. Labels: Cloud Computing , SaaS , sales and marketing. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). Cloud Computing. (1).

Software Review 48

Software Review Technical Review Cloud Europe 48

Cracking the Code

OCTOBER 9, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. This strong recovery has highlighted the resiliency of the recurring revenue model in a downturn as well as the stength of the shift to soaftware-as-a-service and cloud computing. SaaS 13 Index Valuation.

Software Review 48

Software Review Technical Review Cloud Europe 48

Cracking the Code

NOVEMBER 10, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Cloud Computing. (1). Unveilling of the Bessemer's 10 laws of Cloud Comp. Tuesday, November 10, 2009. anecdotes. (13).

Software Review 48

Software Review Technical Review IPO Cloud 48

ConversionXL

MAY 1, 2017

Reporting in the Harvard Business Review on a major study of growth stalls they conducted, Olson and his colleagues cite the case of the iconic brand Levi Strauss, which hit a historic high mark of sales in 1995, reaching revenue of $7 billion, but then, starting in 1996, saw a decline in sales so precipitous that by 2000, revenue was down to $4.6

Technical Review 127

Technical Review Algorithm Channel Analytics 127

Steve Blank

JUNE 17, 2011

Smart Money are prescient angel investors and Venture Capitalists who started investing in social networks, consumer and mobile applications and the cloud 3, 4 or 5 years ago. But they don’t support his justification of the bubble valuations we are seeing for companies filing for IPO’s (Pandora Media just priced its IPO at $2.6

Investment Bankers 310

Investment Bankers Stock Valuation Venture Capital 310

Scalable Startup

JULY 20, 2013

These are now done either transparently in the background, in the cloud, or done using minimally invasive mobile apps. Spell-guesser, auto-fill, travel, accounting, calculating company valuations, facebook, pinterest, dropbox, codecademy, me writing this blog are all managed by a SaaS platform. It vastly reduces computer waste.

Mobile 22

Mobile Hawaii Angel Investor Early Stage 22

Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

Both Sides of the Table

MAY 14, 2015

THIS is how absurd things have gotten: “I have to raise at a billion-dollar valuation” “Why? You don’t have the revenue or profit to support that valuation.” But by coining it, making a logo and repeating it Salesforce.com became associated with leadership in cloud, um, software.)

Valuation 150

Valuation Silicon Valley Non-Compete Software 150

Cracking the Code

NOVEMBER 13, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. It is time to fix your key SaaS metrics: P&L: MRR = MRE: you control your destiny when your monthly revenue equals your monthly expenses Sales & Marketing: Your cost of capital doubled, so if a CAC ratio > 0.5

Software Review 48

Software Review Technical Review Valuation Portfolio 48

David Teten

SEPTEMBER 23, 2017

We’ve seen some modest progress in people upgrading from Excel to Google Sheets; use of some CRM; and a cloud-based storage service. Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

crowdSPRING Blog

NOVEMBER 30, 2012

… Checking In on Foursquare’s Valuation – [link]. Red All Over: Newspaper Revenues Fall In Q3 – [link]. 20 Creative Business Card Designs | Pixel Clouds – [link]. Just got acquired? 10 adjustments to make when working for a Big Co. – [link]. Your Brand is What You Do – [link].

Social Media 100

Social Media Small Business Central African Republic Design 100

Version One Ventures

OCTOBER 3, 2021

Dapper Labs raised another $250M, putting their valuation at $7.6B. At the same time, Shippo was honoured on the Cloud 100 list for the very first time. . It ranked as the 2nd fastest growing software provider in the $50-75M revenue category. . and new investors too. TechCrunch covered this lates t funding news. .

Portfolio 60

Portfolio Canada API Valuation 60

Cracking the Code

JANUARY 22, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. How do you clawback revenue from the sales guy?

Software Review 91

Software Review Clawback Sales Salary 91

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). Yet mobile advertising revenues were paltry.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Cracking the Code

FEBRUARY 25, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. As I was building the spreadsheet, I also included the revenue multiples for this set of companies, both for the trailing 12-month (TTM) and the forward 12-month (FTM). SaaS 13 Index Valuation. Cloud Computing. (1).

Software Review 48

Software Review Technical Review Europe Venture Capital 48

gigaom.com

JULY 10, 2012

Previous What’s wrong with the tech valuations? I bet AT&T’s legal budget is bigger than Nuance’s entire yearly revenue. Tech News and Analysis. gigabarb : Microsoft’s Ballmer to Apple: It’s on (again) [link]. Follow us on Twitter. -->. Speech recognition anyone? AT&T opens up Watson API. By Kevin Fitchard.

API 50

API Technical Review Artificial Inteligence RSS 50

VC Cafe

JUNE 10, 2022

According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said. Apple Roomplan API.

Valuation 151

Valuation Marketing Venture Capital 151

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. Others are cutting their valuations. How many months of cash do you have?

South Korea 333

South Korea Salary Business Model China 333

VC Cafe

SEPTEMBER 22, 2022

“The Centaur is a business that reaches $100 million of annual recurring revenue (ARR)—a rare breed of cloud business, part of an elite subset of the growing unicorn herd.” But becoming a Unicorn, or receiving a billion dollar valuation is no longer an indication of growth. ” Bessemer.

Software Review 109

Software Review B2C Open Source 109

Cracking the Code

DECEMBER 16, 2006

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. however, public SaaS companies like Concur, Saba, Taleo, LivePerson and Ultimate are growing 50-100% per year and trading at an average 5x trailing revenue multiples (I excluded salesforce leading the pack with 9x!)

Software Review 48

Software Review Silicon Valley Technical Review Software 48

thebarefootvc

DECEMBER 16, 2011

Discovery, in contrast to search, took center stage as Pinterest displayed hockey stick growth (and raised VC money near a $200M valuation in late 2011). The viral nature of social media no doubt aided this growth, as did improvements in the online shopping experience.

Technical Review 110

Technical Review India Mobile Hockey Stick 110

Cracking the Code

JANUARY 28, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. 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.

Software Review 48

Software Review Technical Review Los Angeles Europe 48

Agile VC

JANUARY 27, 2012

As a result of a convergence of many factors (lean startup methodology, broadband & smartphone penetration, social web, cloud computing, etc), breakout startups are clearly getting scale faster than they used to. Multi-billion dollar valuations for late stage startups like Dropbox, et al.

Hockey Stick 113

Hockey Stick Seed Stage Silicon Valley Syndicate 113

Both Sides of the Table

MAY 23, 2012

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. 2012 virtual good revenue is expected to top $12 billion this year.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78