Trending Sources

Om Malik on why valuations defy metrics

The Equity Kicker

For larger valuations it is the latter. Yesterday Om Malik reminded us that predicting the future is hard. Both as investors and entrepreneurs.

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

This can be a spectacular situation IF there is freely available capital to fund the company at good valuations. Gross margin positive !=

Startup Valuation: How Much Is Your Company Worth?

Seed Stage Capital

skip to main | skip to sidebar 19 January 2010 Startup Valuation: How Much Is Your Company Worth? They dazzle. It is analogous to a make-vs.-buy

Traction Metrics Seed Real Startup Funding And Growth

Startup Professionals Musings

That should make you wonder - how do you measure traction in a metric? Use these metrics rather than hide them.

How we determine valuations for marketplaces

Version One Ventures

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. YoY growth of at least 30%.

Can Twitter Justify Its $11 Billion Valuation?

Fresh Inc.: The Staff Blog

If you divide Twitter''s $11 billion valuation by the amount of its last full year of sales, you get a price-to-sales ratio of 35. No Profits.

10 Leadership Elements That Maximize Business Value

Startup Professionals Musings

entrepreneur leadership capital startup valuationIn the investment community, these leadership elements are often called “goodwill.”

Pre-Money Valuation vs Number of Founders | @altgate

Altgate

What is interesting is that you see a peak pre-money valuation of $3.16 Again, anecdotal though. So, I’m curious. Is it worth it or not?

How I Got Jeff Bezos to Invest in My Fund (And My Career)

Fresh Inc.: The Staff Blog

Marketplaces, financial metrics, valuation, retail strategy, competition, you name it, we talked about it

When Does Your Company’s Identity and Brand Matter? | BoS USA 2015 | Robert J Moore, RJ Metrics

Business of Software Blog

Robert J Moore, CEO, RJ Metrics. Robert J Moore, RJ Metrics:  I am back. I did a parody of Glengarry Glen Ross last year and basically my responsibility was to yell at the audience for seven and a half minutes, so I’m going to try not to keep that up here. The company’s called RJ Metrics. Slides, Video & Transcript below.

Bad Notes on VC

Gust

There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. People seem concerned about valuation. This week. Me: Ok.

You Are What You Measure, So Choose Your KPIs (Incentives) Wisely!

Occam's Razor

While there is a great deal of appreciation for the power of metrics/data, I've come to realize that Sr. It is a standard metric.

Public SaaS Valuations Are Diving. How Should You React?

Southeast VC

I received data 48 hours ago from Pacific Crest which shows valuations of SaaS companies in a sharp decline. How does this change our playbook?

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Beware the Sky-High Valuation

Fresh Inc.: The Staff Blog

It''s natural for entrepreneurs to want the highest valuations for their company, and lately those valuations have soared. billion.

Cracking The Code: SaaS business metrics: why are they different?

Cracking the Code

Different models require different performance metrics. The MRR is a great metrics, but it can be perfected. SaaS 13 Index Valuation.

The Truth About Early Stage Pre-Money Valuations

Ask the Angels

think there are three fundamental truths regarding the valuation of early stage businesses by potential investors: The first is that a pre-money valuation is ultimately an outcome of negotiation , rather than a mathematical calculation of discounted cash flow or any other metric of potential company performance. By Al Schneider.

SaaS Math Slides

StartupCFO

Last week I spoke with some entrepreneurs at MaRS in Toronto on one of my favourite topics: SaaS Math – covering metrics, pricing and valuations.

Conversations with Richard Chino, pt. 1

Ask the Angels

Richard Chino is passionate about investing in the business environment. What attracted you to becoming an angel investor? loved it from the first day.

Woman-Oriented Startup: $4 Million Funding in 4 Weeks, $100 Million Valuation

Up and Running

Based on its recent funding, the success of its predecessors, and its quick adoption, we estimate a $100 million valuation. Pay close attention near the end where Alyson asks Alexa about the metric, the hard numbers, that sparked investor interest. million. Alexa talks about 10,000 signups on the first day.

Thomas Smale, Professional Website Broker, Explains How To Value Your Website, How To Find A Buyer And Everything You Need To Know About Website Flipping

Entrepreneurs-Journey.com by Yaro Starak

Tweet Download the Text Transcript in PDF. Subscribe to this Podcast in iTunes. Thomas Smale is a website broker, who founded Flipping Enterprises.

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Cracking The Code: SaaS Multiples: Recovery or Bubble?

Cracking the Code

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. SaaS business metrics: why are they different?

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Lessons Learned: The three drivers of growth for your business.

Startup Lessons Learned

Master of 500 Hats: Startup Metrics for Pirates (SeedCamp 2008, London) This presentation should be required reading for anyone creating a startup with an online service component. He also has a discussion of how your choice of business model determines which of these metric areas you want to focus on. Choose one. One last thought.

Is There a Valuation Bubble for Social Media Companies (and if so, is it Bursting)?

Pascal's View

Welcome to the latest passionate debate over the ‘valuation bubble or not?’ question in venture capital.  It is intentional. Share and Enjoy

IPO 4

SaaS Math: Activation, Retention and Churn

StartupCFO

As you will see, churn and retention are the most important metrics to the long-term success of a SaaS business. Easy come, easy go. Who knows?

Unicorpse

Feld Thoughts

But a lot of these are paper unicorns, so their valuations may not be real for a while.” The current usage of the word unicorn makes me tired. I

Transparent Funding Announcements

Feld Thoughts

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. No underlying metrics that drive the financing. We are in a cycle again where how much you raise is the story. financing of Mattermark.

Looking for investors? Here’s how to value your startup

The Next Web

One of the questions I get, more often than not, is what is the appropriate valuation of my business. The valuation techniques.

Where Do $2 Billion Startup Valuations Come From?

Growthink Blog

So easy to understand and believe in are Software-as-Services Models like Domo''s, with business models often boiling down to a simple cost of customer acquisition cost divided by lifetime customer value metric (in Domo''s case, over $50,000 per customer!). And that''s why that $2 billion valuation may not be so high after all.

The wrongness of relativism

A Smart Bear: Startups and Marketing for Geeks

What does it actually mean that metric X is better than average and metric Y is below? Yes, depressed. They’re next! Essays

3 Business Models Venture Capitalists Love

Fresh Inc.: The Staff Blog

Are you obsessed with the same metrics investors care about? Most entrepreneurs think the correct valuation is the highest one they can get.

Key Elements of a Massively Scalable Startup

Startup Marketing Blog

Startup Marketing Blog – By Sean Ellis Unlocking Startup Growth By Sean Ellis of 12in6 May 17th 10 Key Elements of a Massively Scalable Startup VC backed startups generally aspire to valuations in the hundreds of millions or even billions of dollars, but very few really consider all of the elements they’ll need to make it happen. 

Iterating Without Understanding?

Startup Marketing Blog

The other group is completely focused on metrics driven iteration. started in the camp of online metrics and scorned the beanbag marketers who didn’t “get” analytics. At Uproar in the mid to late 90s, metrics were our competitive advantage. Posted in Analytics , Customer Development , KISSmetrics , Metrics Driven Marketing.

Triumph of Hope over Experience - allensblog - Typepad

Allen's Blog

Entrepreneurs Should NOT Answer This Question: "What Are Your Valuation Expectations?" In my "Sherpa" work with startups, one of the things I wrestle with (especially in " bubble " periods, like the present) is what metrics are best to show VC's when raising money.  allensblog. Archives. Profile.

Guest Post: Beware The Post Money Trap

A VC : Venture Capital and Technology

As valuations are extended and it feels very late in this cycle, I feel that the risk of this happening to entrepreneurs is quite high now. The number everyone seems to be forgetting about is the post-money valuation. My partner Albert wrote this a few weeks ago. What could possibly go wrong? That too, however, is faulty logic.

Startups strategies should work in good times and bad

The Equity Kicker

To quote Foundry Group partner Seth Levine, when the markets turn: the growth imperative shifts to a profit focus, [and] companies with high burn and weak operating metrics can get stuck in the lurch. Startup founders should expect that it will take seven or more years to exit their company. Startup general interest Uncategorized

Are founders really 1000x more valuable than their employees?

Venture Hacks

But in the only metric that really matters, the dollar value of stock at the time the employee joins. Employees ValuationIs it fair for the founders to own about 100% of a startup while employee #1 only owns a few percent? Are the founders 10-1000x more valuable than their employees? The answers are. Yes, it is fair. Addendum.

Seed Round Signaling Revisited: Myths, Truths, & Half-Lies

Genuine VC

Some are pre-product, while all the way on the other side of the spectrum, some have meaningful revenue and clear up-and-to-the-right metrics.  The other is valuation of the next round of Series A financing. It’s been five years now since large VC ‘signaling’ entered the seed stage entrepreneur’s lexicon. 

The Morning After

Both Sides of the Table

private valuations go down (slowly because they only adjust at funding intervals or M&A); 0r. So now what? Full stop. Equally importantly.

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Andreessen Horowitz: No bubble but rebalancing from IPO to late stage venture

The Equity Kicker

Firstly this table comparing 1999 and 2014 on key bubble-related metrics. The whole thing is well worth a read, but two slides stood out for me.

Ten million users is the new one million users

Chris Dixon

Especially pre-launch: remember , there’s nothing like numbers to screw up a good story). - Be prepared for lower valuations for non-transactional early-stage consumer startups (breakout later-stage companies, on the other hand, will likely continue to command high valuations). But there are signs this is ending. startups