A Smart Bear: Startups and Marketing for Geeks
FEBRUARY 11, 2014
If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity). At that point, you’ve recovered the cost to acquire the customer.
Both Sides of the Table
MAY 19, 2018
Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”
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The Equity Kicker
SEPTEMBER 26, 2013
High churn rates. High return rates. High referral rates. High net promoter score. This morning I thought I would say more about what that means, starting with characteristics of unsustainable growth: Adding users who are unlikely to engage (e.g. incentivised traffic, users recruited under false pretences).
The Equity Kicker
SEPTEMBER 29, 2016
For marketplaces and ecommerce companies that means revenues (net of VAT) less any discounts or rebates, the cost of the physical item, delivery costs and the cost of returns. You can also use it for with subscription businesses (including SaaS) but in these situations calculations based on churn rate might be simpler and more effective.
David Teten
DECEMBER 3, 2019
Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).
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. You know, a lot of times, what we hear is: “Hey, what does the company do is $5 billion of equity value is $10 billion.” At least that was the thinking.
Up and Running
AUGUST 21, 2014
Lifetime value will also get there and you increase your lifetime value by decreasing your churn rate, i.e. the rate at which people churn out of your product or service, but decreasing your churn will take months to catch up and show the bottom line and your absolutely want to decrease your churn.
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