View from Seed

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. Revenue growth rate of 82% year over year. 10M+ daily active users (DAUs). So Slack generated $1.43

Lock-up Period 168

Lock-up Period Retention Azure .Net 168

Startup Professionals Musings

JUNE 8, 2019

Focus on existing customer retention and repeat business. For sustainable growth, don’t forget that, according to data from the field , it is five times as expensive to gain a new customer than retain an existing one, and a returning customer purchases 30 percent more items and brings in three to seven times more revenue per transaction.

Angel Investor 220

Angel Investor Equity Leadership Demand 220

ReadWriteStart

MARCH 3, 2021

Many new businesses have a small customer base, limited revenue, and a finite amount of funding to work with. Limited brand equity. The Prioritization of Customer Retention. Without new customers, there’s no new revenue, and therefore no engine of growth to tap into. Boost Customer Retention.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Duct Tape Marketing

AUGUST 23, 2023

Lloyed explores the intricate art of harnessing the community’s strength as your ultimate acquisition channe l, brand differentiator, feedback source, retention lever, and catalyst for transformative change. I asked their chief revenue officer, how do you do attribution on this community? He's like, I can't, don't care.

Community 53

Community Kuwait Cofounder Bootstrapping 53

Tim Keane

MARCH 9, 2011

This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.    And, while debt is less costly than equity, it can bankrupt a company more quickly than more expensive equity might. This is an equity example, of course.  Business success is the ultimate goal.

Finance 83

Finance Bootstrapping Startup Equity 83

ConversionXL

DECEMBER 7, 2017

That summer a private equity fund acquired the assets of the company. That latter term is used to describe an initial offer that generates enough revenue to offset the cost of acquiring a customer. Say you have 1000 customers and $1000 to spend on customer retention and loyalty. They brought me in as CMO. Whales rock.

Bankruptcy 106

Bankruptcy Marketing Campaign Intellectual Property 106

Hunter Walker

JANUARY 2, 2017

The total value of these deals might look higher than when a tech company makes an acquihire but the premium tends to go to retention rather than the cap table (especially since (a) the acquirer might not be seen as an ‘attractive’ place to work and (b) there’s assumption of less equity upside post-acquisition).

Technical Review 116

Technical Review Cap Table Acquisition Startup 116

crowdSPRING Blog

NOVEMBER 30, 2012

Convertible Debt: really Bridge Loans and Equity Replacement Debt – [link]. The Biggest Problem in Mobile: Retention – [link]. The Biggest Problem in Mobile: Retention – [link]. Red All Over: Newspaper Revenues Fall In Q3 – [link]. A turkey is a turkey – [link].

Social Media 100

Social Media Small Business Central African Republic Design 100

Agile VC

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. You can see this both by looking at a cohort “layer cake” graph or by examining the net dollar retention.

Lock-up Period 100

Lock-up Period Retention Azure .Net 100

Steve Blank

MARCH 4, 2014

Sales teams are commission-based, executive compensation is based on EPS, revenue and margin, business units on revenue and margin contribution, etc. Corporate KPI’s, Policy and Procedures: Innovation Killers. What Does this Mean? Every time another execution process is added, corporate innovation dies a little more.

IRR 335

IRR Startup Business Model Agile 335

crowdSPRING Blog

APRIL 5, 2013

Small Business Marketing Tip: Send Email Campaigns At Night To Increase Revenue | crowdSPRING Blog – [link]. Online Education’s Dirty Secret — Awful Retention – [link]. SEC Greenlights One Style Of Equity Crowdfunding For Startups | TechCrunch – [link]. ” – [link].

Social Media 92

Social Media Small Business Design Media 92

Both Sides of the Table

OCTOBER 17, 2019

Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue.

IP 223

IP Intellectual Property IRR Cofounder 223

ConversionXL

OCTOBER 20, 2016

There are various ways to measure the above outcomes, and there are varying levels of correlation with revenue, retention, and whatever, but they’re all generally good signs. For the sake of simplicity, and because we’re seeking to optimize websites, let’s measure revenue and conversion increases as a proxy for “liking,” deal?

Revenue 48

Revenue Social Media Retention Metrics 48

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240

ReadWriteStart

AUGUST 26, 2022

So first, we were much more sort of with a high growth rate, and we did not even care about how we got the revenue when we got it. And now we are much more careful about revenue quality revenues. But stuff like retention is super important. Would you say that? . David Zhang. I think you characterize it super well.

Partner 132

Partner Cofounder Retention Acquisition 132

Mucker Lab

JUNE 23, 2014

The pursuit of the mythical VC term sheet has blinded entrepreneurs from the real goal of building a business: revenue, customers, users, engagement and retention. It’s the exact moment when the entrepreneur, the beggar, turns into the auctioneer of precious equity. It’s validation.

Term Sheet 60

Term Sheet Retention Equity Security 60

VC Cafe

AUGUST 3, 2011

Yair Goldfinger’s Dotomi sold to ValueClick for $295 million, of which $162 million are in cash and the rest will be paid in ValueClick equity. In the official press release , ValueClick reported that it expects Dotomi’s revenues to reach $80 million will compliment its own $125 million of annual revenue.

Angel Investor 87

Angel Investor Chicago Retention Cofounder 87

Austin Startup

AUGUST 20, 2017

Compensation decisions obviously affect hiring and retention. They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. I am very surprised when that cool thing actually meets a customer need or drives revenue.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I give up? How much equity should I grant to early employees? No loss of equity, at least until they convert at Series A. How much equity should be given to employees?

Equity 40

Equity Employee Dilution Valuation 40

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. How can you shift focus to customer retention versus acquisition?

South Korea 333

South Korea Salary Business Model China 333

Agile VC

FEBRUARY 2, 2012

I’ll focus for now on the business itself, there’s plenty of other info on the web if you care to understand the equity ownership or financing history of Facebook and frankly this has been fairly well known for awhile. ==. Financial Snapshot : 2011 Revenue: $3.71 2011 YoY Revenue Growth: 88%. Facebook, Inc.

IPO 100

IPO South Korea Venezuela Revenue 100

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. Cloud-based data warehouse Snowflake had an ambitious goal to triple its revenue.

Customer 98

Customer Marketing Channel Acquisition 98

crowdSPRING Blog

AUGUST 6, 2018

They point out : A consistent brand helps increase the overall value of your company by reinforcing your position in the marketplace, attracting better quality customers with higher retention rates and raising the perceived value of your products or services….In Just ask Amazon.

Mobile 48

Mobile Design Technical Review RSS 48

Scalable Startup

FEBRUARY 9, 2011

First revenue are a major validation milestone for a startup after much sweat and tears. But it’s still quite a nice feeling to see revenues coming into your enterprise, and makes you want to figure out how to build upon it. Preparation, a Chief Revenue Officer. But how to get these first revenues?

Revenue 20

Revenue Cofounder Retention Valuation 20

epaley.com

MAY 6, 2013

Once financed, everyone at the startup should have a reasonable salary, but the real compensation for achieving the improbable is the equity that is typically shared between all employees proportional to the expected contribution of each person. Using revenue metric.s Or a good retention tool. Instead they do $9MM in sales.

Salary 41

Salary Startup Equity Forecast 41

ConversionXL

FEBRUARY 25, 2016

Bunting worked with At Home In The Country to add personalized product recommendations to their site, which resulted in a… 13% increase in revenue. The onboarding process brought more people to the core value, thus increasing revenue and improving retention. 3% increase in average visit duration. increase in conversions.

Web 48

Web Software Review Jordan Technical Review 48

Growthink Blog

APRIL 29, 2014

As in less then $10 million in in revenues and less than 30 employees. Companies with Thoughtful Revenue Models. So what investors seeking alpha are left with almost exclusively is that most special segment: startups and emerging companies. Companies almost always with these characteristics: They are Small.

Houston 72

Houston Retention Venture Capital Global 72

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.” These days revenue is the best source of capital. Who is on your board of directors?

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

The Startup Toolkit

JANUARY 3, 2013

Niche community (retention + adwords). Real products (usually with minor recurring revenue and no scalable channel). Real products (usually with minor recurring revenue and no scalable channel). The first category (niche content sites) typically sell for 10x monthly revenue. Niche dropshipping (SEO + suppliers).

Private Equity 31

Private Equity Algorithm Affiliate SEO 31

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Revenue per customer? Revenue, Gross Margin?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

ConversionXL

NOVEMBER 25, 2015

In this way, you can clearly visualize what percentage of people would buy at a given price (in the chart above, 3% of people would buy at $41), and you can determine which price would maximize revenue. Brand Price Trade-off (BTPO) is a statistical technique used to measure your relative ‘brand value’ or ‘brand equity’. Image Source.

Product 48

Product Retention Revenue Acquisition 48

VC Cafe

SEPTEMBER 26, 2022

A founder should know (more or less) what milestones she can achieve with the current round (in terms of product, revenue, etc). While they can outspend you, a startup offers real ownership (equity/options), more impact per employee, and the chance to change the world/industry.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Both Sides of the Table

MAY 5, 2011

When you account for competition for talent, the difficulty of retention, the cost of living and the difficulty of rising above the noise – there are many advantages of staying put. They have the same trade-off decisions that you do about packing up and moving to Silicon Valley vs. staying and building locally. We know it can be done.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Duct Tape Marketing

NOVEMBER 13, 2019

Jennifer Brown: Because the question of retention is more about the workplace culture and it’s very expensive to bring people in only to lose them two years later because they don’t see anyone that looks like them or shares their identity. Make room for a new revenue channel.

Hiring 39

Hiring Community Audience Bandwidth 39

ConversionXL

FEBRUARY 9, 2016

This means users love it, that there’s lots of retention and engagement, even at small numbers. Startups don’t have access to the same resources or brand equity. For example, optimizing retention is a major component of growth hacking that most people ignore. Optimizing for retention , as he points out, is a high-value activity.

Retention 48

Retention Metrics Acquisition Conversion 48

maplebutter.com

JANUARY 8, 2013

Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. I would focus on one product and set a goal to generate $1M in yearly revenue from it. I have a proposal written up including full cost and revenue projections. do something else.

Technical Review 44

Technical Review Startup Cofounder Software Review 44