Steve Blank

MARCH 31, 2014

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard.

Private Equity 329

Private Equity Metrics China Intellectual Property 329

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. They measure their success on metrics that reflect success in execution, and they reward execution.

IRR 335

IRR Startup Business Model Agile 335

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. These metrics make it difficult for a company that wants to invest in long-term innovation. But it’s not over for Intel.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Kai taught me that the key metric to whether a sales process is going well is “engagement.”

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

The Next Web

DECEMBER 16, 2012

Income-based valuations consider aspects like CAPM (capital asset pricing model), IRR (internal rate of return), NPV (net present value), WACC (weighted average cost of capital), NCF (net cash flow), and GAAP (generally accepted accounting principles). The quality, reliability and cost of site traffic.

Valuation 128

Valuation NPV Net Present Value IRR 128

Occam's Razor

OCTOBER 14, 2014

Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). Conversion rate is one of those metrics that I strongly encourage you only create benchmarks for from your own data. Any big shifts in investment (marketing, customer experience, team sizes, tools).

Analytics 133

Analytics Vertical Metrics Web 133

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Anything that hints of a down round brings questions about the success metrics that have already been “booked.”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40