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5 Reasons Startups Need Revenue As Well As Users

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked. Martin Zwilling.

Creative ways to scale SMB customer acquisition


The bigger you get, the higher your customer acquisition costs go. Many startups begin life selling to small business (SMB). Sounds great!

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. buy out an entire company for its revenue and profits. So what?

Should Entrepreneurs Grow Revenue Or User Count?

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. entrepreneur revenue startup user count

Three types of acquisitions

Chris Dixon

There are three types of technology acquisitions: - Talent. As a rule of thumb, these acquisitions are priced at approximately $1M/engineer. Generally the prices for these acquisitions are significantly higher than talent acquisitions. Tech: When the acquirer wants the technology along with the team. Siri). startups

Snapchat and that old no revenues debate

Fred Destin

Grown-up warnings about how real businesses have real revenues were yet again littering my twitter feed in recent weeks. Humongous scale.

How To Boost eCommerce Revenues With Upselling


Way back in 2006, Amazon reported that 35% of it’s revenues were as a direct result of it’s cross sales and upselling efforts.

Three types of acquisition – view from a public company CEO

The Equity Kicker

At a conference last week Autodesk CEO Carl Bass said that he thinks about acquisitions in three buckets: companies that are really people who have a technology that Autodesk wants to build up (acquihires). large scale acquisitions. middle-size companies, meaning they have product that they’re selling, maybe even internationally.

FullContact Continues Its Journey To Solve The Contact Management Problem

Feld Thoughts

They followed this up with two acquisitions – first Conspire and then Profoundis. Along the way they built a sizable business.

Saas Math: Customer vs. Revenue Churn


Revenue churn is revenue you lost from those customers. From these stats, we can calculate both customer and revenue churn.

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. This is a mistake. Good luck. Thanks!

Preparing For An Acquisition


Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation. Know your business.

Why Facebook Clearly Belongs in the 10X Revenue Club

Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. Attached are my thoughts on the Facebook S-1 along with some quick stabs at valuation. I thought it would be useful to look at Facebook using the scorecard from our [.].

The economic logic behind tech and talent acquisitions

Chris Dixon

Suppose you are a large company generating $1B in revenue, and you have a market cap of $5B. You want to build an important new product that your CTO estimates will increase your revenue 10%. At a 5-1 price-to-revenue ratio, a 10% boost in revenue means a $500M boost in market cap. Here is a really simplified example.

Can Paid Customer Acquisition Work With Freemium?

Software By Rob

I received the following question from a reader: I was wondering if you had any thoughts on cost of customer acquisition for freemium businesses.

The Inside Story of a Small Startup Acquisition (Part 1)

Software By Rob

And the funds came from revenue generated by my portfolio of web applications and websites that I’ve built over the past several years.

Making Sense of Yahoo's Puzzling Acquisition Strategy

Fresh Inc.: The Staff Blog

Marissa Mayer is on the verge of completing 14 Yahoo acquisitions in just six months. Will she reinvent Yahoo? And with $1.2 So stay tuned

Drive your recurring revenues.


I have a positive fetish for recurring revenue. With the right recurring revenue model, top line growth can really shoot the lights out.

7 lessons from the Dollar Shave Club Acquisition


revenue. forward revenue in this sale. The post 7 lessons from the Dollar Shave Club Acquisition appeared first on StartupCFO : Mark MacLeod. The big news in the e-commerce World this week is Unilever’s purchase of Dollar Shave Club (DSC) for a cool $1B (cue the Dr. Evil laugh ). So, we have followed this company with interest.

How founders get paid: non-strategic acquisitions, dividends, and private islands

The Startup Toolkit

The company becomes valuable and someone buys the whole thing (acquisition). You’re making solid revenue (e.g.

How we built €20,000 in recurring revenue within 90 days of launch

The Next Web

When I build startups I like to share as much information as possible. Entrepreneur startup stories

Ruby 38

A Billion Dollars, Through Acquisitions & Perseverance

Fresh Inc.: The Staff Blog

The company has since grown to 500 employees, and with the acquisitions of Ketera Network and, was valued at $1 billion in September 2011.

The Inside Story of a Small Startup Acquisition (Part 3)

Software By Rob

This is final installment of a 3-part series covering my acquisition of HitTail. I asked for all of the following information: Monthly revenue.

The Cost of Customer Acquisition: How Much Can You Spend to Earn New Business?

Duct Tape Marketing

The Cost of Customer Acquisition: How Much Can You Spend to Earn New Business? Is it revenue or is it bookings? Especially wins.

A Roadmap of Yahoo's Acquisition Targets

Fresh Inc.: The Staff Blog

Marissa Mayer made her first official acquisition last week with Stamped. A Quora acquisition wouldn't be cheap, either.

How to design a recurring revenue model that will attract capital

The Next Web

One of the first things that a venture capitalist looks for in assessing an investment opportunity is the revenue model of the business.

Who's Next on Twitter's Acquisition List: 4 Predictions

Fresh Inc.: The Staff Blog

That will open up a major new revenue stream for Twitter, which the newly public company needs. Twitter raised $2.09 They''re a growing company.

IPO 16

How to Use Growth Hacking to Increase Revenue 20x in Just 12 Months

Up and Running

Between January 2015 and January 2016, we grew our platform Slidebean from $1K to $20K in monthly recurring revenue. Picking the right team.

6 Rules for Strategic Acquisitions

Fresh Inc.: The Staff Blog

Mike Volpi led 75 acquisitions during his 7-year stint as chief strategy officer of Cisco. billion (a 53 percent premium!). billion.

Acquisition Planning Process: 6 Questions to Answer Right Now

Growthink Blog

Google made 25 acquisitions in 2011; buying companies including Clever Sense, RightsFlow, Apture, Katango, SocialGrapple and more. Don't wait.

YouTube revenues forecast to hit $5.6bn this year

The Equity Kicker

eMarketer are predicting that YouTube revenues will hit $5.6bn this year, 50% up on last year (reported in the Guarian ). Google TV

Steve Blank: Why Corporate Acquisitions of Startups Fail

Fresh Inc.: The Staff Blog

More often than not the results of these acquisitions are disappointing. Is the Potential Acquisition Searching or Executing?

Five Thoughts About the Instagram Acquisition

This is going to be BIG.

That didn't quite work out--while Zynga does represent over 10% of Facebook's revenue, Zynga continued to grew, went public at a multi-billion dollar valuation, and just bought a significant mobile foothold with OMGPOP. Price : If you're looking at the billion, you're looking at the wrong number. In other words, it was a no-brainer.

Refining your Customer Acquisition Cost (CAC) Ratio

Cracking the Code

This metric measures the ratio of the annualized additional recurring revenue generated by your sales and marketing investments. or 70%.

How To Make Money Like Facebook With Online Ads

Startup Professionals Musings

The advertiser sees it as cost per acquisition (CPA) or pay per performance (PPP). Share of revenue from ad action initiated by your visitors.

How one founder’s $5 million risk paid off

The Next Web

million in venture capital, and over $5 million in revenue. Entrepreneur Insider Acquisition business transparency

Facebook Revenue: $1.18 Billion

Fresh Inc.: The Staff Blog

billion in revenue, slightly above analysts' expectation of $1.15 Asked about potential acquisitions, Zuckerberg was frank. "We billion.


Factors To Consider When Creating An Acquisition Strategy As A Tech Startup


The goal of most startup companies is to increase their market share and revenues. A successful acquisition should be able to create synergy.

Marketplace KPI Dashboard

Version One Ventures

Revenue is the income that the company receives from facilitating connections in the marketplace. Overall Marketplace Metrics. Buyer Metrics.

What Is Twitter Worth? Wall Street Mulls Acquisition Value as Dorsey Enters Year 2 on the Job

Fresh Inc.: The Staff Blog

Twitter can't grow users or revenue and it's been unable to stop a fervent abuse problem