Remove .Net Remove Differentiation Remove Software Review Remove Venture Capital
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Are Business Plans Still Necessary?

Both Sides of the Table

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. That died with waterfall software development. I’m not even talking about your 12-page Powerpoint presentation that you need to raise venture capital or to talk with potential biz dev partners.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). And assuming they both had the same net profit margins (profit / revenue) then the former company would be much better off at the end of the year.

Startup 418
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The Courage to Monetize

Austin Startup

If you deliver exactly the same results at the same net cost to the customer via a SaaS product, you may get a tech multiple 10X higher. However, that is wishful thinking if your customer decision makers have budgets for percentage payments and software buying is handled by a different group and a different procurement process.

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18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. Michael first recommends that anyone serious about financial modeling study the Spreadsheet Standards Review Board’s Best Practice Spreadsheet Modeling Standards.

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A Rake Too Far: Optimal Platform Pricing Strategy

abovethecrowd.com

The percentage rake is the amount that the marketplace charges as a percentage of GMS (gross merchandise sales), which typically represents net revenues for the marketplace. This way no one leaves the network due to excessive fees, yet you end up with a higher average rake over time due to the competitive dynamic.

Europe 101
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“Customer First” Healthcare

abovethecrowd.com

A recent study of online physician reviews found that 96% of complaints relate to customer service, and only 4% to quality of care. Now if you are a working parent who prefers to not take their kids from school for medical visits (or simply can’t take them due to work), how do these hours sound? Do they conduct surveys?

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5 Things Startups Can Learn from Angel Investors

Up and Running

I have to admit, I’ve seen some judges of graduate-level business plan competitions care about IRR, but never an actual angel investor during actual due diligence. Please, get a clue: Real businesses usually turn out net profits in single digits, and only rarely up as high as 20%. All that absorbs cash resources. Get a clue.