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Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

It turns out that to build a successful company you ultimately need this strange thing called “revenue” that people don’t just hand you: You need to earn it. And there’s this other thing called “gross margin,” which shows the quality of your revenue. How much ad revenue does TripAdvisor make?

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Why the New Seed Might Be a Bad Seed

This is going to be BIG.

in seed money instead of $1.5M You should target 18 to 24 months of runway post Series Seed." You just wind up spending it faster--and moving fast with lots of money, especially for a first time founder, is bound to be more mistake-prone and less focused. Yay, participation trophies! Why not raise $2.5M

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Traction vs. Product

Rob Go

Often, I find that there is a very distinct trade-off that surfaces when thinking about how to best position yourself for your series A: Option 1 is to focus nearly exclusively on some traction metric. For most companies, this means top-line revenue, but in some cases it’s more about numbers of active users or number of customers.

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Do the Math

Austin Startup

You want your valuation to keep marching upward; if you took in some seed money with the promised 10X venture return, you’ll hopefully be able to prove that you are proceeding on that trajectory. This is a point where your really must be honest with yourself. But, the manner in which you get paid can swing your valuation considerably.

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The beginner’s guide to valuing and selling your app

The Next Web

For example, if your app earns $100 a month and you can’t figure out how to increase the revenue, you could sell it for around $1,200 and collect the revenue for the rest of the year right away instead of waiting for it to come in. You can then use the $1,200 as seed money to work on a new idea. The right moment.

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Why You’re Not Getting the Most out of Your Board

Both Sides of the Table

If you’re a venture-backed tech company or even an early-stage business fueled by angel or seed money I assume you have a good group of board members or advisors who will give you time to be helpful and they want to be helpful. should we charge SaaS revenue, ad revenue or volumetric billing revenue?