Hunter Walker

MARCH 2, 2018

The resulting impact is very profitable, fast-growing success stories with high gross and net margins. So if you believe that in order to access growth capital and consistently trade at a high multiple as a public stock a company needs to maintain the margin-profile of a best-of-class software company, what might be the tradeoffs?

Software Review 92

Software Review Software Technical Review .Net 92

ConversionXL

SEPTEMBER 1, 2020

Meaning: C = Customers (traffic x conversion rate) CLV = Customer revenue – (CAC + cost of serving that customer) CAC = Customer Acquisition Cost G = Growth. The formula weans businesses from an obsession with traffic and instead focuses on increasing customers that generate the most revenue with the lowest acquisition and maintenance costs.

Customer 132

Customer SMS Retention Acquisition 132

Startup Professionals Musings

FEBRUARY 1, 2015

The reasons are a lot more complex than the meltdown of key investment banks in the US a few years ago, so don’t expect a big change in the numbers soon, even with recent stock market rallies. entrepreneur IPO m&a startup Stock Exchange' The M&A alternative looks simple by comparison. Constant pressure to increase earnings.

IPO 120

IPO SEC Prospectus Startup 120

ConversionXL

JANUARY 16, 2019

Email maxes out revenue from big sale periods. Black Friday and Cyber Monday sales represented $123 billion in revenue in 2018. For example, Taylor Stitch asks for a review and then, later, a Net Promoter Score survey (likely the culprit of an app that they installed and forgot about). In-stock notification issues.

Campaign 123

Campaign eCommerce Email Software Review 123

YoungUpstarts

MARCH 29, 2018

Make sure you allow for any difference in revenue between what was predicted in your plan and what you are taking in reality. It’s not much use working out costs and comparing them to budgets unless you calculate the net percentage increase or decrease. Get the infrastructure sorted. Consumables and miscellaneous costs.

Technical Review 100

Technical Review .Net Warrant Cost 100

Agile VC

AUGUST 9, 2012

We also know lots of valid reasons why the company could be valued at far less than it once was including: Stalled Growth – revenue essentially flat over the last 4 quarters. So I can appreciate why public stock investors would be leery of Zynga and why the stock price has been punished recently. as of this post.

Stock 160

Stock LBO .Net Valuation 160

Up and Running

AUGUST 13, 2014

An Income Statement, also called a Profit and Loss Statement, is a fundamental tool for understanding how the revenue and expenses of a business stack up. Typically, an Income Statement is a list of revenue and expenses, with the companys net profit listed at the end. A line by line breakdown of an income statement.

.Net 100

.Net Balance Sheet Forecast Business Plan 100

Startup Professionals Musings

MAY 29, 2022

The reasons are a lot more complex than the meltdown of key investment banks in the US a few years ago, so don’t expect any real change in the numbers soon, especially with recent stock market downturns. The M&A alternative looks simple by comparison. Constant pressure to increase earnings.

IPO 245

IPO SEC Prospectus Startup 245

YoungUpstarts

JANUARY 10, 2018

In other words, if there exists low hanging fruit for your company to expand, sometimes leaving that fruit alone before you sell will help you entice a higher multiple, resulting in your net benefit. For example, when news of United Airlines’ forced passenger removal hit the media, the fall-out from incident caused United stock to drop $1.4

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Version One Ventures

OCTOBER 15, 2020

And >40% of that revenue is coming from in-game purchases. When they can invest the marginal engineering hour in listing a new token that drives revenue vs. saving some costs on settlement, it’s hard to justify. synthetic stocks or futures) and prediction markets. This could change very quickly, however, with a new bull run.

Networking 168

Networking Global OTC Security 168

Agile VC

JUNE 5, 2011

They’ve grown from nothing to >$2B in revenue in 30 months time, making the company among the fastest growing businesses in the histroy of the world. How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). Financial Snapshot: 2010 Revenue: $713M.

North America 100

North America Chicago Boston Silicon Valley 100

Feld Thoughts

JANUARY 7, 2015

Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. I’d argue the 0.5x

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

Steve Blank

MARCH 17, 2020

To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month. Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

YoungUpstarts

FEBRUARY 13, 2019

by Robbie Kellman Baxter, author of “ The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue “ Everyone knows that retention is crucial for subscription-based companies. ” A value problem is very different from a budget problem. Dig deeper. Why or why not?

Customer 173

Customer Technical Review Retention Acquisition 173

YoungUpstarts

DECEMBER 22, 2014

DSO is the average number of days that a company takes to collect revenue after a sale has been made. The accounts receivable turnover ratio is your annual net sales divided by your annual accounts receivable. If you can hold less stock without adversely affecting sales, this can reduce DSO. Watch your accounts receivable.

Singapore 191

Singapore Asia Management China 191

ConversionXL

SEPTEMBER 9, 2021

Brand consistency can increase revenue by 33% , as it connotes familiarity and builds trust. A major way in which these clinics generate revenue is through open days where patients get to see live demos of new treatment and are able to book the treatment there and then, often at a discounted price. And it was rewarded for it.

Social Media 142

Social Media Media Developer Marketing 142

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. What accelerated this was the collapse of the public stock markets. Price MUST be in a certain range.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Up and Running

JULY 15, 2015

It’s a precious commodity; your investment into your own company stock. 50% of B2B companies find it difficult to attribute marketing activity directly to revenue results. Some people prefer to track Gross Revenue, instead of (or along with) the lifetime value of the client. You need it to perform.

Marketing 60

Marketing Social Media Campaign Acquisition 60

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. The stock market clearly values companies that can deliver disruptive innovation.

Private Equity 329

Private Equity Metrics China Intellectual Property 329

YoungUpstarts

JULY 6, 2020

But, if they ever want to attain financial success, they will need to generate more revenue. Going into debt to own your home is decent debt that will provide tax breaks and incentives, allow your investment to appreciate over time and help you build your net worth. They don’t go out as much as they’ like or buy what they’d like.

.Net 189

.Net Stock Security Revenue 189

Both Sides of the Table

MARCH 1, 2016

In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays. Some LPs have privately speculated that later-stage VCs may have a field day in the next 18 months, buying up large positions in firms with strong revenue at attractive prices given the recent squeeze on funding.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Berkonomics

AUGUST 3, 2023

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Often private equity investors will want control of the business as well.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Austin Startup

DECEMBER 17, 2017

I will always remember his pre-speech pep talk: “Dyer, your entire net worth rides on not screwing this up.” I recall that MSA’s stock increased 5X or thereabouts after our deal, which by no means implies that Peachtree deserved sole credit for all that. I got the message.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

View from Seed

NOVEMBER 18, 2020

You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment. But even with this profitable Q3, on a trailing twelve months (TTM) basis Airbnb has a GAAP net loss of >$1 billion.

North America 401

North America IPO Prospectus Europe 401

The Startup Magazine

APRIL 24, 2020

While it might sound like something from a stock broker’s library, SDE is actually a pretty simple concept. You basically take the overall revenue from your business (i.e. gross revenue) and then subtract your business’s operating expenses and cost of goods sold from that number. What you’re left with is your business’s SDE.

eCommerce 92

eCommerce Valuation B2C Revenue 92

Startup Professionals Musings

NOVEMBER 3, 2014

Take little to no net profit. All you need is a blog, Twitter, email, some business card stock, and a little creativity. In most cases there is a direct correlation between the quality of your decisions and the size of your revenue stream. If you do, there probably won''t ever be a long run! Reinvest gross profit.

Bootstrapping 278

Bootstrapping Startup Merger Salary 278

Up and Running

AUGUST 30, 2017

Like it or not, this will likely affect your revenue and enrollment, especially if you are offering part-time care. Make sure to find out if it is a gross or net rate. Gross includes everything, but net doesn’t include the following: Property taxes. What is your business model? This adds up to $100,000. Landlord insurance.

Business Plan 93

Business Plan SBA Software Review Advisory Board 93

YoungUpstarts

OCTOBER 22, 2018

‘Official’ finance record keeping has to be carried out using specific financial documents, and supporting paperwork has to be undertaken so that an accountant can calculate the company’s tax liability and submit accounts to the IRS (Internal Revenue Service). The documents. So what are the main finance documents to be aware of?

Finance 113

Finance Balance Sheet Cash Position .Net 113

Hearpreneur

APRIL 13, 2022

Thanks to Adam Garcia, The Stock Dork ! #20- Businesses that operate online are the most likely to use the freemium revenue model. This company continues to grow today and disrupt its industry, and its net value continues to rise to incredibly high numbers. Further, many companies actually accept Bitcoin as a method of payment.

Artificial Inteligence 75

Artificial Inteligence Entrepreneur Technical Review Software Review 75

Startup Professionals Musings

SEPTEMBER 11, 2013

Because public shareholders usually take the short-term view, they want to see constant rises in the stock''s price so they can sell their shares for a profit. As best, you should reserve this option for later stage VC discussions, once you have a well-proven business model, large market following, and substantial revenue.

IPO 242

IPO SEC Prospectus Startup 242

Up and Running

AUGUST 29, 2014

A study co-sponsored by Crawford International and HR.com in Palo Alto, California in 2006 found that “companies that create adaptive corporate cultures outperform companies with non-adaptive cultures by a factor of 900 to 1 as measured by long term net income and stock price growth.”

Small Business 87

Small Business CPA Government North America 87

Startup Professionals Musings

APRIL 23, 2013

Take little to no net profit. All you need is a blog, Twitter, email, some business card stock, and a little creativity. In most cases there is a direct correlation between the quality of your decisions and the size of your revenue stream. If you do, there probably won''t ever be a long run! Reinvest gross profit.

Equity 241

Equity Bootstrapping Startup Merger 241

Steve Blank

JUNE 23, 2016

Here are four reasons: First, companies bought into the false premise that they exist to maximize shareholder value – which said “keep the stock price high.” 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.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Berkonomics

APRIL 4, 2019

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding,) and approve any additions to the capital stock authorized to be issued. Requirements created by investment documents.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

YoungUpstarts

JULY 7, 2018

You can also hedge your bets by investing in things like stocks, bonds, index funds, or real estate. A safety net for failure. If you’re generating revenue from multiple sources, you’ll be far less likely to suffer when one source of income dries up. The Motivations. Income diversification.

Entrepreneur 113

Entrepreneur .Net Networking Stock 113