ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. Reasons for funding. ? Incubators and Accelerators. Government programs.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

APRIL 26, 2016

In an eCommerce or Internet Services business it is often the marketing costs (if purchased online) and in an enterprise software company it is often marketing plus enterprise sales reps. In eCommerce it’s easy to measure the first time purchase value (AOV, average order value) but that doesn’t tell you the “life time” value.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

MAY 18, 2020

With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Favor profitability over revenue and user growth. With the advent of the Internet, the size and address of your office is irrelevant.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Up and Running

SEPTEMBER 19, 2017

Background: Justin Klemm’s analytics and website uptime startup, Ghost Inspector , wants to revolutionize the way businesses manage their ecommerce funnels. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

The Equity Kicker

JUNE 4, 2014

the ecommerce companies or software companies that we invest in) and you have a $1m revenue run rate and 20%+ month-on month growth you will generally be in good shape. Companies with greater revenues and stronger growth are able to raise bigger rounds at higher valuations.

Revenue 146

Revenue eCommerce Affiliate Valuation 146

Hearpreneur

JANUARY 22, 2023

In recent years, eCommerce companies have begun to increase revenue by selling products directly via social media networks. 29- Continued use of online market valuation tools Photo Credit: DJ Parker I have seen the use of apps and online market valuation tools intensify over the last few years and I think that will continue in 2023.

Artificial Inteligence 121

Artificial Inteligence Technical Review Entrepreneur Social Media 121

The Equity Kicker

DECEMBER 2, 2015

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. His major point is that revenue multiples aren’t that high, largely because the market is highly competitive and margins are low – often because of Amazon. revenue multiple because it’s strong on both these metrics.

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. Our rule of thumb is that marketplaces at scale are valued at roughly 1x annualized GMV (typically about 6-8x annual revenue). Our assumptions for this valuation: Scale: > $1b GMV. YoY growth of at least 30%.

Valuation 60

Valuation Early Stage IPO eCommerce 60

VC Cafe

APRIL 28, 2021

And elsewhere creator monetisation tools and revenue streams continue to expand: Ads and bran deals – Youtube reported $6 billion in revenue for Q1 2021 , a 50% growth rate from the equivalent period last year. The sum is equivalent to the combined annual revenue of Snap and Twitter for 2020. — ??????

Audio 167

Audio Valuation Stealth B2C 167

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. Sokolovsky also operated an on-demand food delivery startup based in Berkeley, before entering eCommerce logistics.

Early Stage 112

Early Stage Los Angeles Silicon Valley Cofounder 112

Both Sides of the Table

MAY 19, 2010

It’s always fun debating companies with Dana because she’s always so knowledgeable on deals – particularly those in the digital media, ad-tech and eCommerce spaces. Note that these are “gross” revenue numbers. Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners.

Partner 240

Partner New York City Cofounder Syndicate 240

Startup Professionals Musings

JULY 27, 2018

Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Online and ecommerce businesses are especially attractive here, since they are instantly worldwide and not people-intensive. Business model showing costs, pricing, and margins.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Both Sides of the Table

NOVEMBER 28, 2013

In the market we’ve seen the massive uptick of SaaS valuations in the public markets and commensurate attention on private market fundings and valuations. eCommerce was battered this year. He joined when we were a small team with no revenue and shitty offices. Some Ad Tech has skyrockets some has suffered.

Valuation 288

Valuation eCommerce Revenue Social Network 288

ConversionXL

FEBRUARY 15, 2018

My company focuses on optimization for the high-end and luxury market, and over the years, we’ve learned there are 5 critical factors that will make or break the conversion rate of a high-end ecommerce store. High end or not, all ecommerce stores should at least follow some basic usability principles. Don’t skip the basics.

eCommerce 125

eCommerce Conversion Sales Technical Review 125

Both Sides of the Table

JULY 1, 2015

“the ecommerce company gained fauxmentum by raising artificially high amounts of venture capital and spent lavishly on customer acquisition despite long payback periods and questionable LTV” __. . In the ecommerce arena I see some great companies spending heavily on customer acquisition. __. faux·men·tum. Summary.

Balance Sheet 150

Balance Sheet eCommerce Venture Capital Acquisition 150

VC Cafe

JULY 27, 2021

All camera-first applications and games that incorporate 3D content like Pokémon GO, Snapchat, and TikTok are seeing unprecedented adoption and revenue which points to the fact that new solutions are required to manage and deliver 3D content for all future applications.” in revenue in five years from player spending. 2) VR adoption.

Cofounder 183

Cofounder Mobile Revenue Cloud 183

Duct Tape Marketing

FEBRUARY 3, 2022

I mean, how do you end up putting some, something that is intangible that is more than like, you know, a, a multiplier of revenue, because there are some people that have created a methodology that have created a framework that have created something exactly a way to actually get, you know, leads. Do you have a leadership team?

Entrepreneur 77

Entrepreneur Technical Review Cofounder Valuation 77

Rob Go

DECEMBER 28, 2011

61M in Q3 revenue, up 28% YoY. Wayfair: This is somewhere between an exit and and a growth round, but the largest independent ecommerce company focused on the huge home/furniture category raised a $165M round from a group of growth, private equity, and venture investors. Tripadvisor: An amazing entrepreneurial story. market cap.

Technical Review 54

Technical Review Boston Software Review IPO 54

Startup Professionals Musings

APRIL 6, 2016

With one of the new free tools and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Favor profitability over revenue and user growth. With the advent of the Internet, the size and address of your office is irrelevant.

Bootstrapping 120

Bootstrapping Hockey Stick Sweat Equity Intellectual Property 120

VC Cafe

SEPTEMBER 16, 2021

A new flock of startups has launched to support content creators to craft (videos, art, newsletters, music, games, courses, etc), find an audience, generate income (subscriptions, tipping, ecommerce, NFTs, etc) and engage their communities. This is where new startups can help. The 2021 Creatorscape by Influence ( source ).

Startup 207

Startup Social Media Venture Capital Audio 207

Up and Running

JUNE 14, 2017

Out of those 600, 256 committed to the platform by agreeing to be associated with Recycler Spotter for recycling (recycling facilities) and giving away rewards (restaurants, coffee shops, ecommerce stores, and so on) to our users. They matched buyers with these businesses manually on-demand.

Technical Review 96

Technical Review Distribution Redemption Demand 96

The Equity Kicker

MARCH 7, 2016

10-20m revenues is the threshold for most high growth businesses that gets you into what I would call ‘large scale’ territory of $100m+ exits. Also very important to note is that the number of acquisitions declines precipitously as the valuation rises.

Acquisition 60

Acquisition Intellectual Property Investment Bankers Valuation 60

Startup Professionals Musings

NOVEMBER 9, 2015

The cost of entry to entrepreneurship is lower than ever, due to smartphone apps and powerful free tools to create websites and ecommerce offerings. Creative and determined entrepreneurs always find ways to get people to work for equity, barter services or share later revenue rather than pay cash up front.

Bootstrapping 120

Bootstrapping Cofounder Equity Agile 120

thebarefootvc

DECEMBER 16, 2011

eCommerce/Social Commerce: New models continue to evolve as ecommerce rebounded this past year. 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).

Technical Review 110

Technical Review India Mobile Hockey Stick 110

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

The Equity Kicker

OCTOBER 8, 2012

According to Paul most startups should look at revenue growth, but active users is a good proxy for companies that aren’t charging their customers (yet). Many of those milestones will be growth oriented, but they often centre on hitting round numbers – e.g. $10k or $100k per month in revenues or 1m active users.

Silicon Valley 149

Silicon Valley IPO eCommerce Valuation 149

Up and Running

FEBRUARY 8, 2016

Here’s what they discovered: They found firms that quickly institute formal mechanisms such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) had higher growth rates in terms of revenues and headcount.

Entrepreneur 60

Entrepreneur Software Review Balance Sheet Partner 60

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

View from Seed

JUNE 30, 2015

Over a third of our investments happen pre-product (so by definition, before PMF), and two-thirds are pre-revenue. For a marketplace or ecommerce business, you need to be doing well north of $5M in annual revenue or GMV to get an A round done. FWIW, at NextView, we invest from inception to strong PMF.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Rob Go

MAY 21, 2014

eCommerce. Care just went public, is an $80M+ revenue business, and has a multi-hundred million dollar market cap (not a vapor private valuation). Care just went public, is an $80M+ revenue business, and has a multi-hundred million dollar market cap (not a vapor private valuation). Network effect businesses.

Boston 57

Boston Cram Down Indiana eCommerce 57

Hunter Walker

JUNE 7, 2016

HW: At Homebrew we see lots of startups wanting to serve the small/growing business segment with software tools ranging from ecommerce, to point of sale to employees back-office and so on. Bento Box – our mobile-friendly website was created by them to help drive revenue and customers. Revel – our iPad-based point of sale.

Caching 70

Caching DC Social Media Finance 70

ConversionXL

FEBRUARY 12, 2016

Therefore, we have this huge opportunity to influence how people feel – how they perceive our product’s value – as well as the opportunity to optimize the customer experience in such a way that the customer is delighted and we maximize our revenue. What’s the difference between price, quality, and value? Image Source. Conclusion.

Security 48

Security Cost Advertising Product 48

ConversionXL

JANUARY 9, 2019

In other words, if a form fill can be qualified with a second interaction (say, responding to a phone call), that data—the percentage of form fills who become qualified leads—can guide conversion valuation, even if months pass before those qualified leads become sales. The Page Value metric provides URL-by-URL valuations of every page.

Sales Cycle 127

Sales Cycle Bootstrapping Conversion Web 127

Hunter Walker

JUNE 7, 2016

HW: At Homebrew we see lots of startups wanting to serve the small/growing business segment with software tools ranging from ecommerce, to point of sale to employees back-office and so on. Bento Box – our mobile-friendly website was created by them to help drive revenue and customers. Revel – our iPad-based point of sale.

Caching 48

Caching DC Social Media Finance 48

YoungUpstarts

FEBRUARY 14, 2017

Your revenues are declining or you don’t have any revenue at all! Revenues don’t appear overnight; even the greatest success stories had to work hard to start getting traction and growth. Yet if revenues start to decline, or after a few months customers are still leaving you for other solutions, then you may have an issue.

Technical Review 157

Technical Review Architecture Revenue Channel 157

Hearpreneur

AUGUST 5, 2020

It helped them to engage already existing customers with the brand and kept the revenues steady. Another pointer is to how much the industry is ready for disruption is the trend of recent HR and Recruitment startups such as Zenefits which reached up to a valuation of a billion dollars after a few years. 23- eCommerce.

Technical Review 154

Technical Review Software Review Entrepreneur China 154

Austin Startup

FEBRUARY 24, 2019

It is a non-profit, unlike eTail or Internet Retailer (today I hear that Shoptalk is the biggest eCommerce conference), and it is where the highest level people in digital retail go as a result. They will bring you revenue, delight your clients (the right salespeople care about the ultimate value delivered?—?not

Software Review 48

Software Review Sales Cofounder Analytics 48