Matching Metrics Valuation Venture Capital 
Steve Blank
MARCH 31, 2014
As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency. Look at the valuations of companies like Tesla, Illumina, and Twitter.
Steve Blank
SEPTEMBER 14, 2009
Over the same 30 years, Venture Capital firms have honed their skills and strategies to match Wall Streets needs to achieve liquidity for their portfolio companies. One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. What Do VC’s Do?
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K9 Ventures
JUNE 5, 2015
Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. The Venture Capital industry as a whole does a terrible job of giving things the right name and so we end up keeping the same name, but changing the meaning out from under it.
Steve Blank
MARCH 17, 2020
What are the new financial metrics? They triage their deals – first worrying about liquidity of their late stage deals which have the highest valuations. In every major downturn inflated valuations disappear and the few VC’s still writing new checks find it’s a buyer’s market. How do you know? Days of cash left?
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. In regards to calculatimg the "Magic Number" - should the amount included as sales and marketing costs match the length of the sales cycle?
Cracking the Code
DECEMBER 2, 2006
The time they spend with customers is usually limited to transactional core products sales, generating lower margins – The resource allocation is not always matching the opportunity (geography, customer segment, vertical.) – The rules of engagement for technical resources (solution or product specialists) are not clear.
Ben's Blog
MARCH 24, 2011
Since so many distinguished people report a broad variety of qualitative bubble signs, let’s attempt to pattern match the quantitative data. As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. Venture capital flows.
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