A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

They have everything: money, brand, momentum, existing customers, press, product teams, distribution channels, expertise, market insight, analysts, sales offices, product features, and, by definition, a working business model. In the big-boy and big-girl world of real, at-scale companies, valuation is about total future earnings.

Technical Review 120

Technical Review Valuation Flash Revenue 120

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. “It’s not fair,” we all said to ourselves.

Metrics 246

Metrics Early Stage Retention Revenue 246

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation. Pundits couldn’t agree how to analyze the sale of Instagram to Facebook. Remember this is revenue , not valuation. Zoom out to see the strategic decision.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

But all that investment in growth and sales force didn’t have a long-term payback, and the actual value of the product to small businesses wasn’t as high as claimed, even though the simplest of customer development reveals this fact (ask any restauranteur).

IPO 240

IPO Flash Bootstrapping Private Equity 240

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

ME: Sure, but maybe that competitor would further validate and grow the market, which could increase your sales and make you even more attractive to a buyer! They know there’s a minimum valuation, under which you’re not interested. In fact, what if a new competitor pops up in a year and starts kicking our ass?

Sales 235

Sales Term Sheet Stock Deal Structure 235

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

I recently helped a friend broker the sale of his small, bootstrapped company. This is a smart guy with experience and a logical approach to such things, but the way he was initially trying to value his company was not only wrong, but the wrong way to think about the entire sale. To stoke an existing sales channel.

Sales 260

Sales Channel Cofounder Valuation 260