A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

They have everything: money, brand, momentum, existing customers, press, product teams, distribution channels, expertise, market insight, analysts, sales offices, product features, and, by definition, a working business model. The insight is: The profitable revenue stream is a prison. But David has a clear path to slaying Goliath.

Technical Review 120

Technical Review Valuation Flash Revenue 120

Both Sides of the Table

JUNE 22, 2011

I’m no great scholar on bubbles – I have more interesting things to spend my time worrying about than the exact definition , but having been around a few I have at least given them intellectual consideration. Ah, but today’s Internet companies have real revenue! Why I believe we’re in a bubble. and profits!

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Feld Thoughts

AUGUST 25, 2015

The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. So contrary to the piece, it wasn’t VC were good at early stage technology, it was that they had newfound capital and a big exit window.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

Cracking the Code

FEBRUARY 23, 2011

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. In comparison, the overall technology sector growth was projected at 9-10% in early 2010 and this forecast did not change significantly today. revenues while large caps are trading at 6.4x.

Software Review 101

Software Review Technical Review Valuation Europe 101

Both Sides of the Table

APRIL 26, 2016

In many senses the KPIs of a business should be driven by the finance / ops team more than the sales & marketing teams because the latter is wont to use the most liberal definitions of CAC to justify spend where the former has to make sure you don’t run out of cash. One big, beginners mistake people make in LTV is to measure revenue.

Metrics 150

Metrics Cost Acquisition Startup 150

Up and Running

MAY 17, 2017

An ROCG study of 502 business owners with revenues between $1 million and $100 million found that only 40 percent successfully transitioned their business and only 9 percent had a formal, written succession plan. Savvy buyers will definitely ask: What has your business done in the months preceding the acquisition? Beyond ROI.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

Duct Tape Marketing

FEBRUARY 3, 2022

Since 2015, her company, Barney, has guided over 150 media, marketing & tech companies through acquisitions. Click on over and give us a review on iTunes, please! Not necessarily marketing services, a tech platform that, that sold and the process, this was seven years ago. Amanda’s Website. Like this show?

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

This is going to be BIG.

OCTOBER 12, 2020

Moat, the biggest exit out of the bunch, was sourced when I met Mike Walrath at a tech event. We started talking about cycling and electronic shifters (which I definitely couldn’t afford) when he mentioned this new company. That leaves me out raising with two funds under my belt and no big exit and no unicorn valuations.

LP 136

LP Technical Review Software Review Valuation 136

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? venture capitalists are now asking tougher questions about start-ups' revenue and profits.". Perhaps I need to rethink that. But second, how do you back this up?

Venture Capital 114

Venture Capital Marketing Term Sheet Software Review 114

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? Defining the pre-seed round It’s futile to look for ‘one true’ definition. Lower valuations and follow on valuation sensitivity – fundraising is a recurring event in the life of a startup.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

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

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Working within a network of angel investors also expands the pool of expert resources and helps divide the work of screening companies and investment due diligence. Scorecard Valuation Methodology.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Up and Running

AUGUST 29, 2014

A venture feasibility study analyzes an idea from several perspectives: market opportunity, competition, resources available, resource gaps, financial viability, operational issues, intellectual property rights, development timeline and technology needs. CPA’s also can represent clients in case of an Internal Revenue Service (IRS) audit.

Small Business 87

Small Business CPA Government North America 87

Cracking the Code

OCTOBER 9, 2009

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. In other words, how much of the decline in revenue growth is due to signing up fewer customer vs lower revenues from each new customer.

Software Review 48

Software Review Technical Review Cloud Europe 48

www.inc.com

SEPTEMBER 24, 2011

Technology | Thursdays. TECHNOLOGY. Technology. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi. Join our community. Advertising.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Cracking the Code

DECEMBER 1, 2009

Note: high CAC ratio means high productiviy (see blog post for definition). Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. In search of Europe's next tech stars. Churchill Club 2008 Top 10 Tech Trends. Best Venture and Technology Podcasts for 2007. My Investments.

Software Review 48

Software Review Technical Review Cloud Europe 48

Cracking the Code

NOVEMBER 10, 2009

It is intriguing to see the M&A dynamics in the space, highlighting the interest of tech companies for recurring revenue streams - even SAP announced in their analyst call earlier this month that they were moving from perpertual licenses to five year term licences. Detailed SaaS Spreadsheet (Valuation and CAC benchmark).

Software Review 48

Software Review Technical Review IPO Cloud 48

Hearpreneur

AUGUST 5, 2020

The decision on which industry one should venture in is often determined by factors such as advancement in technology and availability of capital. There is no doubt that technology has impacted it in a large way in current times, and this pandemic as only accelerated it’s progress. Is your industry ready for a change?

Technical Review 156

Technical Review Software Review Entrepreneur China 156

Cracking the Code

NOVEMBER 10, 2009

The internet is your new channel and Technology Enabled Service providers are among the few partners that actually care if you succeed (more.) By definition, your sales prospects are online - Savvy online marketing is a core competence (sometimes the only one) of every successful Cloud business (more.) SaaS 13 Index Valuation.

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

www.mint.com

MARCH 9, 2010

If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” What is the post-money valuation of your last round? Who is on your board of directors?

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Cracking the Code

FEBRUARY 25, 2008

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). Note: high CAC ratio means high productiviy (see blog post for definition). Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 48

Software Review Technical Review Europe Venture Capital 48

Cracking the Code

JANUARY 22, 2009

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. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

Reid Hoffman

MARCH 23, 2021

Entrepreneurs and executives will do all sorts of things to improve themselves, from taking a class on a particular technology, to reading a book about venture deals, to practicing intermittent fasting. As you review your numbers and reach conclusions, you need to be thinking about not just: “How true are these conclusions now?”

Venture Capital 46

Venture Capital Metrics Investment Bankers Framework 46

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. Note: high CAC ratio means high productiviy (see blog post for definition). SaaS 13 Index Valuation.

Software Review 48

Software Review Technical Review Los Angeles Europe 48

Cracking the Code

DECEMBER 16, 2006

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!) whereas traditional software companies of this size have a growth rate of less than 10% and revenue multiples of 2-2.5x.

Software Review 48

Software Review Silicon Valley Technical Review Software 48

Hearpreneur

SEPTEMBER 27, 2020

The idea about success remains popular but its definition means different to everyone and so is it’s measure. 2- Depends on one’s definition of success. The definition of success differs from person to person, and business to business. If it’s the other way around, then its definitely overrated.

Entrepreneur 134

Entrepreneur .Net Metrics Revenue 134

Duct Tape Marketing

JUNE 20, 2023

He serves clients across a range of industries on growth strategy, performance improvement, and value creation by harnessing the power of data and analytics, digital culture and capabilities, and modernized core technology. Click on over and give us a review on iTunes, please! Like this show? That's right.

Technical Review 66

Technical Review Silicon Valley Generative AI Arizona 66

Steve Blank

NOVEMBER 5, 2009

This post describes how companies using the Customer Development model can increase their credibility, valuation and probability of getting a first round of funding by presenting their results in a “Lesson Learned&# venture pitch. Knowing this venture firms have come up with a canonical checklist of what they would like to see.

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Up and Running

AUGUST 19, 2014

I have pitched to hundreds of angel investors over the years as a result of co-founding two tech companies and raising just shy of $1M in angel capital. My favorite part of pitching to them was the due diligence process. Entrepreneurs impress me when they demonstrate a proven revenue stream before asking for capital.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Duct Tape Marketing

FEBRUARY 16, 2023

Click on over and give us a review on iTunes, please! So we could go, we could spend the rest of our time talking about valuation. Banks are gonna have different sets of definitions. That's when you get into all that other, you know, e-myth stuff, you know, system. So I like the term main Street. So they're fearful.

Technical Review 81

Technical Review Wisconsin Non-disclosure Agreement Salary 81

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. we weren’t the natural leader of a market or technology trend that everyone was paying attention to, we didn’t have substantial organic growth, and. we had no revenue. Facebook, by the way, was not yet on most people’s radars in the summer of 2004.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

www.paulgraham.com

APRIL 28, 2010

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. There never has to be atime when you have no revenues. Another concept we need to introduce now is valuation. Whendel.icio.us

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Ben's Blog

APRIL 28, 2010

The macro reason: that’s the way most of the great technology companies have been built. At Andreessen Horowitz, our primary goal is to invest in the great technology franchises. VMware—Diane Greene. (*) While not technically cofounders, Andy Grove and Thomas Watson, Sr. Oracle—Larry Ellison. Peoplesoft—Dave Duffield.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Austin Startup

FEBRUARY 12, 2019

Those were CEOs of public companies and founders or executives of some of the fastest-growing and most successful tech companies in Austin and tech. Most definitely. One of the biggest myths alive and well in startup land, particularly in Silicon Valley and even in Austin’s tech scene, is that money rules all.

Silicon Valley 48

Silicon Valley Technical Review Venture Capital San Francisco 48

Cracking the Code

MAY 25, 2010

A few highlights from the different keynotes and speakers On top of Jason, we also had the chance of having many great speakers at the event and here are a few quotes and notes that I have taken during the different keynotes and panels: Joe Payne, CEO of Eloqua moderated the panel on Revenue Performance Management. SaaS 13 Index Valuation.

Software Review 74

Software Review Cloud IPO Jordan 74