Startup Professionals Musings

OCTOBER 21, 2015

In addition, the best companies compare the negative and positive cash flows over a period of time to determine the net present value (NPV) of planned future marketing spending. Obviously, you are looking for demand generation programs that have a positive return on investment (ROI).

Metrics 120

Metrics NPV Net Present Value Conversion Ratio 120

abovethecrowd.com

SEPTEMBER 4, 2012

Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. Lifetime value is the net present value of the profit stream of a customer.

Net Present Value 96

Net Present Value .Net Internet Cost 96

The Equity Kicker

DECEMBER 2, 2015

At the end of the day a business is worth the net present value of future cash flows, EBITDA is a good proxy for cashflows, and future EBITDA is a function of revenues today, revenue growth and EBITDA margin. Hence the revenue multiple is directly linked to growth and margin.

Forecast 60

Forecast eCommerce Net Present Value .Net 60

Up and Running

MAY 2, 2012

Internal rates of return and net present value. Not just disruptive , but market-leading , and viral , and pivot. They remind me of the old days when every software package claimed to be user friendly (and mine was the only one that really was). . I’m glad they taught you that in business school.

Net Present Value 142

Net Present Value IRR Texas Global 142

David Teten

NOVEMBER 15, 2013

I don’t think that a Net Present Value calculation is appropriate for every company. And what happens if you don’t get into the one VC that gets into Cornerstone On Demand (ffVC company, now the 10th largest SaaS company in the world)? The one fact we know for sure about every financial model we see: they’re wrong.

Management 114

Management Pre-Money Valuation Venture Capital Valuation 114

The Next Web

DECEMBER 16, 2012

It calculates value on the bases of revenue that the buyer can expect to earn from the site, taking into account the risks that are involved in operating it. The asset approach to valuation focuses on the market value of what’s included in the sale itself. Asset approach.

Valuation 128

Valuation NPV Net Present Value IRR 128

ReadWriteStart

AUGUST 26, 2022

So they have about 60 million customers now, and they have a view of the net present value of each customer when they’re onboarding them and their models to show it. So they have quantifiable risk profiles and ultimately map them to lifetime value, right?

Partner 132

Partner Cofounder Retention Acquisition 132

crowdSPRING Blog

OCTOBER 12, 2015

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Past costs, whether an investment of time or money, should never be used in evaluating a decision. A great illustration of sunk cost?

NPV 48

NPV Net Present Value Small Business Valuation 48

crowdSPRING Blog

OCTOBER 18, 2010

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Past costs, whether an investment of time or money, should never be used in evaluating a decision. A great illustration of sunk cost?

Small Business 106

Small Business NPV Net Present Value Valuation 106

BeyondVC

OCTOBER 11, 2007

At this inflection point, an entrepreneur needs to think about whether they want to and can build for the long haul (taking into account the risk and time to do so) or sell today (net present value of your potential expected outcomes in the future).

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

Cracking the Code

OCTOBER 10, 2008

To answer the second question and make sure you are building a profitable business, the key indicator to look at is the Customer LifeTime Value (CLTV). The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. A profitable business will have a positive CLTV.

Software Review 48

Software Review North America Europe Metrics 48