Both Sides of the Table

APRIL 26, 2016

If your economic case is built on increasing LTV over time or on retaining recurring revenue streams please remember to layer on “re-marketing or retention” costs into your equation. What are the re-marketing or retention cost assumptions? In this case, CAC isn’t sufficient to look at long-term profitability. What is the LTV?

Metrics 150

Metrics Cost Acquisition Startup 150

The Startup Magazine

OCTOBER 29, 2023

This proactive approach fosters a positive brand perception, potentially leading to higher customer retention and increased profitability. By monitoring the customer journey, you can redefine your business strategies to better align with customer expectations, thereby improving their overall experience.

Metrics 132

Metrics Customer Harvest Acquisition 132

Steve Blank

APRIL 1, 2020

Others are cutting their valuations. How can you shift focus to customer retention versus acquisition? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. If you were expecting angel or venture funding get on the phone to your investor(s).

South Korea 333

South Korea Salary Business Model China 333

Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

www.avc.com

SEPTEMBER 22, 2011

This is NOT your 409a valuation (we call that "fair value"). This "best value" can be the valuation on the last round of financing. When you are doing retention grants, I like to use the same formula but divide the dollar value of the retention grant by two to reflect that they are being made every two years.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Startup Professionals Musings

JUNE 26, 2016

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. It’s only been in the last ten years that social media companies, like Facebook and Twitter, have achieved market valuations in billions of dollars, while clearly sacrificing revenue to gain users.

Revenue 145

Revenue Valuation Startup Viral 145

crowdSPRING Blog

NOVEMBER 30, 2012

… Checking In on Foursquare’s Valuation – [link]. The Biggest Problem in Mobile: Retention – [link]. The Biggest Problem in Mobile: Retention – [link]. Just got acquired? 10 adjustments to make when working for a Big Co. – [link]. The danger of waiting to long to find a business model?

Social Media 100

Social Media Small Business Central African Republic Design 100

ConversionXL

JULY 16, 2021

This strengthens brand loyalty and drives customer retention. It took 10 years and steady growth, punctuated by a brilliant messaging strategy, to achieve a $5 billion valuation. . Your brand story. Your brand story (and business storytelling techniques) helps you generate an emotional connection with your audience.

Audience 127

Audience Framework Differentiation Software Review 127

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation. by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Startup Professionals Musings

AUGUST 10, 2014

Should they focus on increasing revenues and profitability, or entice more and more users with free services to increase their valuation. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention and high revenue per employee. Most are still confused about the right priority.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

ConversionXL

JUNE 19, 2018

Look at your growth team score and ask yourself: are you working in a multi-disciplinary team where you focus on high tempo testing on the entire customer journey for bottom line and valuation impact? Engagement & Retention. Use CXL Institute to train your team members on growth. Where is your customer journey captured?

Technical Review 103

Technical Review Agile Analytics Conversion 103

David Teten

MAY 1, 2013

There are some automated valuation tools on the web like valuate.com and estibot.com that use search traffic, backlinks, and other data to appraise the value in the domain name. Still, deciding on the right price for a target domain name is almost entirely an exercise in negotiation, not valuation.

Naming 114

Naming Semantic Venture Capital Startup 114

Hearpreneur

SEPTEMBER 27, 2020

While one may see profits as a success, others may view it as customer satisfaction, employee retention, or innovation. The definition of success differs from person to person, and business to business. Success is not overrated when you define what that means to you, pursue it and measure it. 3- Yes, business success is overrated.

Entrepreneur 134

Entrepreneur .Net Metrics Revenue 134

Up and Running

OCTOBER 13, 2022

Employee retention, for both startups and established businesses, is more important than ever. Get a 409a valuation. You will need to get a 409a valuation of stock options to determine the fair market value for the plan. This will ensure that your ESOP is legally viable and accurately reflects the value of your business.

Vesting 88

Vesting Stock Valuation Stock Options 88

Hunter Walker

MAY 13, 2023

The proverbial win-win-win: founders got to land their company often with some retention premium; employees got job offers; and we got capital back, that even if it wasn’t a power law return, allowed us to recycle into new investments or the existing portfolio. of the time my answer is no f **g way].

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

A Smart Bear: Startups and Marketing for Geeks

DECEMBER 16, 2014

” It doesn’t matter whether we’re talking about valuations , growth rates , retention rates , NPS scores, early-stage uncertainty , ratio of revenue to employee, CAC , cash-burn, LTV , gross margin, or selling your company.

Metrics 246

Metrics Early Stage Retention Revenue 246

Both Sides of the Table

OCTOBER 25, 2014

But as I like to tell entrepreneurs, great PR could add $10 million to your valuation or increase your chances of closing a round 2x and either case is a reason to make sure you have good press. You can’t measure the retention benefits but I promise it exists. It’s much hard to get funded as a company nobody has heard of.

PR 415

PR Early Stage Dividend Acquisition 415

The Equity Kicker

FEBRUARY 27, 2014

Finally a note on Whatsapp’s valuation – the $16bn price tag ($19bn including employee retention bonuses) is best understood in the context of Facebook’s valuation ( $180bn as I write this). They process 50bn messages per day with 99.9% uptime and a service so good that 72% of active users come back daily.

Product 123

Product Valuation Retention Acquisition 123

Both Sides of the Table

MAY 13, 2013

If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds). We get the mechanics.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

David Teten

AUGUST 6, 2015

financial statement summaries, valuation analysis, ratio analysis, etc.) If assumptions get better over time (lower customer acquisition, higher gross profit, better retention), note how you plan to achieve those milestones in the model. once a model has been finalized. 12) Design for printing.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

VC Cafe

OCTOBER 23, 2022

Revenue can be the result of good marketing, but without taking into account usage and retention, focusing on revenue alone can be misleading. Revenue doesn’t imply product market fit – if people are paying for the product but not using it, you don’t have product market fit. What’s a good North Star Metric?

Metrics 179

Metrics Revenue B2C Portfolio 179

View from Seed

SEPTEMBER 25, 2019

Something standard like a SaaS company where the exits scenarios and valuations are well-understood may not need a slide here, but the more non-traditional or unique the venture is, the more information which a Founder can fill in the blanks of “what could be” are helpful.

Seed Stage 166

Seed Stage Retention Restful Valuation 166

Austin Startup

AUGUST 20, 2017

Compensation decisions obviously affect hiring and retention. Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. Are you progressing at the same rate as the best of them?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Startup Professionals Musings

DECEMBER 1, 2017

Advantages for your business include a stable revenue stream, customer retention, and increasing customer investment over time. This is a very popular model today for Internet services, with monthly or yearly payments, in lieu of one higher up-front price. The customer advantage is a lower entry cost.

Revenue 166

Revenue Affiliate Advertising Retention 166

Startup Professionals Musings

DECEMBER 5, 2016

It takes extra effort and focus on some special techniques, including the following, to get the edge you need over your competitors in customer attraction and retention: Set order-of-magnitude goals. New” companies, like Uber, can build billion dollar valuations, and start acquiring older companies seen as much larger.

Retention 120

Retention Valuation Equity Analytics 120

abovethecrowd.com

JUNE 2, 2021

Would that help retention and NPS (Net Promote Score)? The punchline of Chris’ argument is in the highlighted box, where he argues Procore is better off (having done an IPO and “as a result” of choosing the IPO), because Procore ended up with a valuation the day after the IPO of 20.5X Would they be loyal? Damn straight it would.

IPO 82

IPO Customer Matching Silicon Valley 82

Startup Professionals Musings

JANUARY 16, 2017

All stakeholders see this as an advantage, encouraging new investors and raising the valuation of your business. Improves employee retention and attracts better candidates. Increases customer advocacy and loyalty in all markets. These days, existing customer advocacy is a key attractor of new customers.

Government 120

Government Retention Valuation Employee 120

Hunter Walker

DECEMBER 18, 2020

Meaning, she knew the Year One performance required to sustain that valuation was beyond the company’s likely results over the next quarters. A strong post-IPO HR plan includes communication, retention grants/etc, helping employees get access to trusted financial advice and so on. Am I Right?

IPO 90

IPO Stock Retention Valuation 90

Tim Keane

MARCH 9, 2011

  If plenty of cash flow regardless of plan for sale/retention of business: Senior bank debt based on cash flow coverage and new assets.  2] One of the huge mistakes entrepreneurs make at this stage is accepting friends and family money and assigning huge valuations to the company to reduce the size of future payments required. 

Finance 83

Finance Bootstrapping Startup Equity 83

Cracking the Code

DECEMBER 1, 2009

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. S&M productivity (CAC ratio) for the SaaS 13 Index. Note: high CAC ratio means high productiviy (see blog post for definition). My Investments. CornerstoneOnDemand. anecdotes. (13). Cloud Computing. (1).

Software Review 48

Software Review Technical Review Cloud Europe 48

Hunter Walker

SEPTEMBER 2, 2022

We don’t aspire to be venture backed, to be a mark-up, or to chase the headline of a valuation. HW: When we first met you had founded Belly , a B2B2C loyalty/retention startup. Or, I hear about the % ROI from Chicago investments being top decile because of lower entry valuations, as if that’s something that is attractive to founders….

Chicago 78

Chicago Venture Capital Miami Employee 78

Babbling VC

FEBRUARY 19, 2014

So it''s been a couple hours now that the news is out: Facebook purchased WhatsApp for €16B (plus €3B on top for employee retention). Once again, Silicon Valley proves that if you want the real money, you have to have cross-pollination at board level and amongst your VC''s to really drive up valuation. Does the 16B make sense?

Silicon Valley 110

Silicon Valley Retention Valuation Restful 110

Berkonomics

FEBRUARY 21, 2019

Once there is progress in any of these critical areas, raising professional investment is easier and the likelihood of a higher valuation makes for retention of more equity during the first important professional round.

Dilution 48

Dilution Retention Valuation Startup 48

View from Seed

OCTOBER 15, 2014

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. However, these are important updates for your board to know. You should also include a 1-2 sentence description of what’s happening.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

So it IPO’ed at a $13b valuation but has dropped month-over-month to one-fourth that value and appears to be in “constant pivot mode” while they try to figure out a new, massive market for which their existing infrastructure is an asset. So now it’s your turn to think about this with your own company.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Hunter Walker

NOVEMBER 25, 2022

Basically, do they think there’s room for promotion and ongoing recognition/retention compensation? If I buy 10% of the startup at seed, with say, a $10m valuation, what do I think I’ll net if the company exits for $1b (rosy scenario!). I mean, who knows, I just want it to be worth a lot!

Salary 56

Salary Burn Rate Dilution Equity 56

Startup Company Lawyer

FEBRUARY 21, 2010

In response to the problem of worthless common stock, some companies have implemented employee retention plans, which are also referred to as M&A carveout plans. This was particularly common from 2001 to 2003, after the dot-com crash when companies had raised a large amount of venture financing at high valuations. Participation.

Retention 31

Retention Liquidation Preference Employee Common Stock 31