Steve Blank

NOVEMBER 16, 2009

In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers? What metrics do we use to see if we learned enough in Customer Discovery ? And without revenue how do we know if we achieved product/market fit to exit Customer Validation?”

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Customer Development Web Developer Customer 219

crowdSPRING Blog

OCTOBER 28, 2011

9 Metrics to Help You Make Wise Decisions about Your Start-Up – [link]. Good data from @msuster on The State of Venture Capital and the Internet – [link]. Change Its Revenue Stream – [link]. Wow – only 1318 companies control 80% of global revenue – [link].

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Social Media Small Business Design Media 98

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. Venture Capital. (3).

Software Review 101

Software Review Technical Review Valuation Europe 101

Reid Hoffman

MARCH 23, 2021

The metrics from the dashboard are the key inputs for collective decisions. You can always instrument your business and gather metrics, but that doesn’t mean the data you gather will be useful. Just track metrics that help you improve the product. The problem was that Groupon’s revenue growth was a false positive.

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Venture Capital Metrics Investment Bankers Framework 46

Up and Running

MAY 30, 2022

It keeps them on track, even when the global market rapidly shifts as we’ve seen in recent years. An often overlooked purpose of a business plan is as a tool to define success metrics. By housing these financial metrics within your business plan, you suddenly have an easy way to relate your strategy to actual performance.

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Business Plan Balance Sheet Revenue Metrics 150

YoungUpstarts

APRIL 5, 2019

But flattering media attention too easily shifts focus away from the metrics that matter. Call me old school, but I believe in metrics like growth, revenue, and profit. All other metrics are irrelevant. Venture capital has a big say in which companies and projects see the light of day.

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Valuation Cofounder Metrics SEC 162

David Teten

AUGUST 6, 2015

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. I also spoke with Michael Hutchens , CEO & Cofounder of BPM Global , which helps organizations more efficiently build and maintain financial models.

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Balance Sheet Software Review Forecast Acquisition 60

Cracking the Code

DECEMBER 1, 2009

Venture Capital. (3). SaaS business metrics: why are they different? Global warming: a plague for humanity? Global Warning! Explore Venture Capital. Favorite Podcasts. (1). internet. (6). McKinsey highlights. (1). Online Gaming. (1). Portfolio. (3). sales and marketing. (10). software. (10).

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Software Review Technical Review Cloud Europe 48

ReadWriteStart

OCTOBER 20, 2023

Rise of Global Tech Hubs An exciting shift in recent years is the emergence of new technological hubs across the globe. This global expansion means startups now have a wider array of ecosystems to choose from, each with its unique advantages, resources, and challenges.

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Technical Review Startup Silicon Valley Agile 137

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. internet. (6).

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Software Review Technical Review Cloud Europe 48

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. Venture Capital. (3).

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Software Review Technical Review Cloud Forecast 63

ReadWriteStart

JUNE 29, 2020

Thus, let’s start this discussion by defining the global crisis caused by the new coronavirus, COVID-19 , so that we can look forward to finding the opportunity in the crisis. What this means is that the global economy has been paused while we wait for the virus to burn itself out. .” – Albert Einstein.

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Bootstrapping Global Startup Hungary 85

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. Venture Capital. (3). Global warming: a plague for humanity?

Software Review 48

Software Review Technical Review IPO Cloud 48

Cracking the Code

NOVEMBER 10, 2009

Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! SaaS companies use different metrics to calculate renewals. Venture Capital. (3). SaaS business metrics: why are they different? Global warming: a plague for humanity? Global Warning!

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

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. Venture Capital. (3). Post a Comment.

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Software Review Technical Review Valuation Portfolio 48

Cracking the Code

JANUARY 22, 2009

For SaaS companies, we found that MRR is the best metric on which to base sales commissions. 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? Cindy said.

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Software Review Clawback Sales Salary 91

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). Venture Capital. (3). SaaS business metrics: why are they different? Global warming: a plague for humanity? Global Warning! internet. (6).

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Software Review Technical Review Europe Venture Capital 48

The Equity Kicker

JANUARY 10, 2020

Nic is also the author of one of Europe’s most popular venture capital blogs – www.theequitykicker.com. They find a niche in the market where they can grow some revenues and then they raise some more money. And what are the metrics for customer love? Let’s start with the obvious question. What are your benchmarks?

Partner 68

Partner Early Stage Portfolio Metrics 68

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking.

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Technical Review Software Review Analytics Private Equity 78

Up and Running

MAY 28, 2015

We’re looking at our lean business planning is about strategy, tactics, concrete specifics including milestones, metrics, tasks and schedule, and essential numbers to run a business, all of which lead to managing cash flow. You need metrics because we’re human. It is a very difficult proposition. Are we recruiting?

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Lean Business Plan Video Software Review 60

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.

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Software Review Silicon Valley Technical Review Software 48

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

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Founder Technical Review CTO Hire IPO 245

Cracking the Code

MARCH 28, 2022

Before answering this, let’s take a look at what happened in the global software and cloud market over the last year. Global market snapshot The world now has 10 software and cloud giants worth more than $100B, representing $4.1T of market capitalization. The Index added another $0.9T in Sept 2020. vs US’ 2.4x).

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Global Europe Software Review 62

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. Venture Capital. (3). SaaS business metrics: why are they different? Global Warning! internet.

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Software Review Technical Review Los Angeles Europe 48

This is going to be BIG.

DECEMBER 1, 2010

Whats sales metrics do you track? Whether it's clicks or conversions, they're squeezing every last bit of ROI out of their venture dollars. They've turned sales into a science, tracking every metric possible and understanding what really drives the bottom line. Just close rate? It's no different on the sales side.

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Sales Sales Cycle Metrics Reputation 99

Growthink Blog

MAY 25, 2016

Time and effort is taken to collect and analyze key business data and metrics, but executives also draw upon their educations, their life and professional experiences, and the counsel of trusted advisors for the full and nuanced view. The Real Choice : Data informs, but does not determine, key business decisions. They are our clients.

Revenue 48

Revenue Metrics Cost Management 48

Austin Startup

MARCH 26, 2019

Important metrics to track include customer count, average order value (AOV), retention or repeat purchase rate, ad spend, paid CAC, weighted average CAC, rolling LTV estimates, and more. Related to the previous question, we live in an age where global politics and economics can impact anyone’s business.

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Technical Review Software Review China Acquisition 49

Austin Startup

FEBRUARY 12, 2019

or Charles Hudson at Precursor Ventures the moment I started a new business that I felt had global potential. My goal is simply to point out that some of the most prominent myths Silicon Valley and the startup ecosystem have invented to propel the industry to global heights are just that: myths. Most definitely. Not at all?—?although

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Silicon Valley Technical Review Venture Capital San Francisco 48

Both Sides of the Table

MARCH 3, 2013

We also spoke about technology systems in the perspective of global competition. He believes that one of the financial metrics taught at business schools and reinforced by Wall Street has accelerated offshoring of industries. He spoke about ROCE (return on capital employed). .” Venture Capital.

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Bankruptcy Offshore Liquidation Preference Balance Sheet 403

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. Venture Capital. (3).

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Software Review Cloud IPO Jordan 74

mashable.com

SEPTEMBER 14, 2011

Amidst an increasingly connected world, globalization is the order of the day. However, while the benefits are many (including more efficient communication and greater potential for collaboration), today’s digital age can put increased pressure on young businesses to expand globally — and to do so quickly. from France.

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France Marketing Social Media Startup 77

Steve Blank

NOVEMBER 7, 2013

What CEOs, management teams and shareholders care about is growth —revenue growth, greater user adoption, increased market share, bigger margins, etc. And this has created a global entrepreneurial ecosystem. Using an alternative process including different systems and metrics is key. to find, attract and retain “starters.”.

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Lean Nepal Cofounder Customer Development 326

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Effectively measuring and understanding your CAC and CLTV metrics are key to future success. Great list! Great list! Philippe Botteri.

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Software Review North America Europe Metrics 48

Austin Startup

JUNE 26, 2019

However, we also discovered key challenges we could not overcome with the capital and window of our team. You might notice what’s not on that list above: revenue, investors. No revenue isn’t always a problem for venture-style businesses; no investors + no revenue = challenges for most founders without tremendous self-funding.

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Silicon Valley Startup B2C Sweat Equity 54

Cracking the Code

MARCH 10, 2008

I found this approach interesting, but it seems to me that gross margin is a more relevant benchmark than revenues, given that the GM of saas companies varies by type of application and size of the company (for example NetSuite went from about 50% GM three years ago to close to 70% today).

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Sales Software Review Marketing Technical Review 79

Up and Running

MARCH 11, 2015

Now you’re going to move into your revenue model. Okay, so now your revenue model, so this is—. Food, technology, bioscience, services, you need to know the metrics for your model. These are the metrics for the SaaS model that we have. This is, are you a brick and mortar? You’re muted. This is what we track.

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Technical Review Software Review Due Diligence Exit Strategy 60

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! Venture Capital. (3). Global Warning!

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