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Forecasting ecommerce multiples at exit

The Equity Kicker

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. His major point is that revenue multiples aren’t that high, largely because the market is highly competitive and margins are low – often because of Amazon. revenue multiple because it’s strong on both these metrics.

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Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

So first, we were much more sort of with a high growth rate, and we did not even care about how we got the revenue when we got it. And now we are much more careful about revenue quality revenues. So they have quantifiable risk profiles and ultimately map them to lifetime value, right? Would you say that? . David Zhang.

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Should I flip or should I build?

BeyondVC

Put yourself in these entrepreneurs’ shoes – you launch a great product or service today, usage is growing, revenue is nil or minimal, and cocktail party chatter and buzz are at its highest. Two days ago it was Jaiku being bought by Google and this morning CBS announced that it is buying Dotspotter , a 10 month old gossip blog.

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The art and science of valuing websites

The Next Web

That’s given us insight into which valuation methods are good, helping site owners clinch that all-important deal, and which fall short, leaving sites unsold and their owners disappointed. Today I want to walk you through the more successful valuation methods in use now. This approach is based on the belief that revenue matters most.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

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. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.