Tim Keane

JANUARY 12, 2010

Next, they carefully consider the range of multiples being used today to value companies being acquired or doing IPOs in the market that the business is in.   In a bottom up approach, the forecast is built from actual user projections. times the investment.).   As an example, I have used an EBIT multiple [1].

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

NOVEMBER 2, 2018

At the other extreme, I don’t condone greedy and unethical business practices to unjustly shake down customers and employees alike. As an investor myself, I look for a balanced story focused on the major elements that drive profitability, including the following: A 5-year financial forecast achieving a positive cash flow early.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48

Up and Running

MAY 1, 2014

Your business plan isn’t complete without a financial forecast. You’ll end up with a long, generic statement about how your company is serving its customers, employees, etc. Business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Up and Running

APRIL 28, 2015

Slide 5: Revenue model. Investors will expect to see your sales forecast, profit and loss statement, and cash flow forecast for at least three years. Having an IPO and going public is a viable option for some high-growth startups, while other businesses are more likely to be bought by larger players in your market.

Forecast 60

Forecast Hockey Stick Exit Strategy Intellectual Property 60

Startup Lessons Learned

OCTOBER 30, 2008

Get 18 months or more of cash (runway) in the business against a conservative forecast. Not just about expenses, about increasing revenue. Make sure for planned revenues you have "leading indicators" to know if you will hit it. Over-communicate with employees, investors, customers. Act now, act with speed.

Lean 121

Lean San Francisco Continuous Deployment DC 121

Seeing Both Sides

AUGUST 3, 2012

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. In 2012, analysts forecast the company will achieve nearly $1.5 billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. Gross Profit. $(60).

Distribution 49

Distribution Lean Massachusetts Cofounder 49

Startup Lessons Learned

JULY 9, 2009

We were focused on revenue, but we didnt understand that revenue is not important for its own sake in an early stage company. Almost all of them got scooped up by pre-IPO Google this time. That year, right before the IPO, those months mattered a great deal in terms of financial outcomes. About spot trends. all about luck.

San Francisco 94

San Francisco Lean Continuous Deployment DC 94

Startup Lessons Learned

JUNE 9, 2020

He also has strongly held ideas about structuring a company to institutionalize these intentions to make sure the next leader, future employees, and the next board will be true to that philosophy. 47:49) Brian on the letter he wrote to employees to announce the layoffs and the response to it. (50:17) 6,000, 7,000 employees.

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

Cracking the Code

OCTOBER 13, 2020

The average revenue multiple is now 17x+, close to 10 times higher than during the 2008 crisis! On the IPO front, the one word that comes to mind is “supersize”. Their average employee growth in the past 12 months was north of 40% and they’ve raised $6.7 Is the sky the limit for Cloud public stocks? billion of combined funding.

Europe 71

Europe Cloud Silicon Valley 71

Cracking the Code

SEPTEMBER 2, 2008

The Deutsche Bank report has a very interesting chart on the topic presenting the Free Cash Flow margins vs. the revenue growth four years post IPO for select software leaders: As you can see, with 20% Free Cash Flow margin and a 50% growth rate, Salesforce is well positioned in the pack! Tuesday, September 02, 2008. for Lawson?

Software Review 48

Software Review Software Technical Review Cloud 48

abovethecrowd.com

JULY 7, 2015

If you are post-revenue, it should unquestionably include a financial statement and forward forecast. You will need to motivate your employees, and you will (hopefully) be invited to speak at important industry conferences. If you are post launch, it might involve a viral coefficient discussion or a cohort analysis.

Warrant 40

Warrant Later Stage Forecast IPO 40