Both Sides of the Table

OCTOBER 17, 2019

Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue.

IP 223

IP Intellectual Property IRR Cofounder 223

Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability.

Silicon Valley 233

Silicon Valley IPO Technical Review Venture Capital 233

Agile VC

NOVEMBER 6, 2013

So their revenue figures, pre IPO financing and ownership, and other info is all widely available. If this were a math class, I’d just say the proof is evident but if you want some data on Twitter’s 2013 YTD revenue here you go. Twitter’s IPO has garnered a ton of attention in the tech and popular press.

IPO 194

IPO Aggregator B2B Internet 194

Agile VC

NOVEMBER 7, 2019

Aggregate VC investment in 2009 hits a low of roughly $20B, a figure last seen in 2003 in the wake of the bursting of the dotcom and telecom bubble and 2001 recession. Year over year revenue growth rates are measured in multiples not percentages. We’re only a few months past Sequoia’s famous “R.I.P. Good Times” presentation (Oct 2008).

IPO 100

IPO Early Stage Cofounder B2C 100

Duct Tape Marketing

SEPTEMBER 10, 2019

And I’m guessing one of them certainly is a lot of, “What’s the revenue? So what’s your top-line revenue? The more revenue you have, the more valuable your company is going to be, generally. The more revenue you have, the more valuable your company is going to be, generally. Here’s why.

Entrepreneur 49

Entrepreneur Switzerland Revenue Differentiation 49

VC Cafe

NOVEMBER 3, 2010

Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8 In 2009 it boasted revenue of $4.49 KOREA’S POSCO SIGNS AGREEMENT SEEKING ISRAELI R&D.

Bandwidth 79

Bandwidth Framework Forecast 79

Cracking the Code

MARCH 12, 2010

Given the predictability of SaaS GAAP revenues on a quarterly basis, the fact that the 08/09 projections were unchanged is not a surprise. Given that the revenues are not growing very fast, this means that most of the companies have reduced their sales force and focused on productivity improvement.

Software Review 63

Software Review Technical Review Cloud Forecast 63

Both Sides of the Table

JUNE 29, 2011

As some of the last generation of startups have gotten bigger many VCs have also chased later-stage investments that were traditionally dominated by growth equity or mezzanine funds. And of course hedge funds and growth-equity funds can’t resist trying to get earlier-stage exposure again. Will public investments come next?

Venture Capital 296

Venture Capital Software LP Early Stage 296

Up and Running

DECEMBER 9, 2014

Two, revenue. Many business owners today really think of financials as being about the past, how much revenue have we had, how much cost did we have. Inaudible 00:27:51] leading indicator to help you know where your revenue will be over the coming weeks and months but you can actually apply the same concept on the cost side as well.

Small Business 95

Small Business Finance Forecast Metrics 95

Venture Chronicles

MAY 26, 2010

Venture math is really simple, if you raise $10 million for a company that is valued at $10 million “pre-money&# then you have sold 50% of the equity to the new investors. I’d be willing to bet that more investors lose a great amount of aggregate capital here than at any other stage. pre-money then you have sold 75%.

Lean 40

Lean Early Stage Valuation Startup 40

techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Respondents deemed between 12%-16% of companies generating revenues to be essentially “worthless” and deemed 20%-26% of their pre-revenue investments to be “worthless.” Add to this that 72.7%

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

K9 Ventures

OCTOBER 10, 2017

Typically, Pre-Seed rounds are less than $1M in aggregate capital raised. Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. 6M-$15M used to scale customer acquisition and revenue).

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

www.chubbybrain.com

SEPTEMBER 28, 2011

Marc Hedlund of Wesabe talked about this in his post-mortem stating: Between the worse data aggregation method and the much higher amount of work Wesabe made you do, it was far easier to have a good experience on Mint , and that good experience came far more quickly. During this year they. deprecated the old feature-complete product (ACS 3.4)

Cofounder 89

Cofounder Startup Technical Cofounder CTO Hire 89

abovethecrowd.com

APRIL 20, 2016

Many have noted that the aggregate shareholder value created by all of the Unicorns will vastly overshadow the losses from the inevitable failed unicorns. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. ” Go public.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

abovethecrowd.com

JUNE 2, 2021

Also, take a look at this critically important data point , also aggregated by Professor Jay Ritter. He then argues Squarespace, as a result of choosing a Direct Listing, ended up with a valuation multiple of 6.7X, which he says compares unfavorably to its public peer $WIX (which has an 8X forward revenue multiple).

IPO 82

IPO Customer Matching Silicon Valley 82

Up and Running

MAY 1, 2014

Instead, they prefer to buy through large distribution companies that aggregate products from lots of suppliers and then make that inventory available to retailers to purchase. A typical P&L will be a spreadsheet that includes the following: Sales (or Income or Revenue). Retail Distribution. Cost of Goods Sold (COGS).

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

www.chubbybrain.com

SEPTEMBER 28, 2011

Between the worse data aggregation method and the much higher amount of work Wesabe made you do, it was far easier to have a good experience on Mint , and that good experience came far more quickly. spent $20 million to get back to the same revenue that I had when I was CEO. Post-Mortem Title : Why Wesabe Lost to Mint.

Software Review 79

Software Review Startup Technical Review Vesting 79

techcrunch.com

OCTOBER 13, 2012

He is on the board of the Angel Resource Institute, and is a partner with Montlake Capital (a late stage growth capital fund) and with Revenue Capital Management (a royalty based lender). When you aggregate all of the data, these angel investors (across the U.S. He’s c0-authored two books and many academic articles.

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

Occam's Razor

JANUARY 7, 2019

Each chosen obsession is very much in the spirit of my beloved principle of the aggregation of marginal gains. Grab the revenue number for the company. Does sponsoring a fashion show lead to an increase in brand equity? In addition to the macro-outcome of revenue). Double that number this year.

Analytics 88

Analytics Marketing Algorithm Campaign 88

David Teten

MARCH 2, 2013

Moreover, VC funds on average earn approximately 2/3 of their revenue from fixed fees. The Economics of Private Equity Funds demonstrates that the VC industry survives mostly on fee-based income (of which larger funds have a proportionally larger amount). To some degree, they are all hampered by data scarcity problems.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

Startup Lessons Learned

JUNE 9, 2020

A complete collapse of revenue that simultaneously affects your employees and your customers, your partners, your investors, everyone all at once and all the news is bad. We didn't want people not having their equity. We didn't want people not having equity out the door. So then what? I have known Brian Chesky for a long time.

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

techcrunch.com

OCTOBER 23, 2010

Tony P great, though meebo’s place as a “successful&# start up is still open to debate – from consumer IM aggregator to white label IM, still not making big $$. This resulted in a recapitilization of the equity away from 33% each (in my favor) and then the ultimate dismissal of one of the co-founders prior to the A-round.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84