Startup Professionals Musings

SEPTEMBER 6, 2010

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage blogs and other resources, and maybe even pay themselves a salary. NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Both Sides of the Table

SEPTEMBER 8, 2009

I was reading Chris Dixon’s blog tonight. I came across this blog post about getting a computer science degree as the best degree for getting into venture capital or working at a VC-backed start up. This is part of my ongoing series called “ Start-up Lessons.&#. I had to laugh a bit reading it. What you lose: 4.

NPV 337

NPV Chicago Balance Sheet Database 337

ConversionXL

AUGUST 10, 2016

Back in 2014, they blogged about how their users transition from one state to another. In this case receiving 6 texts has a PPV of 26% and an NPV of 93%. Two popular examples of user state models are healthy vs. unhealthy users and casual vs. core users. Pinterest, for example, uses the casual vs. core user state model.

NPV 48

NPV Metrics Retention San Francisco 48

Rob Go

MAY 26, 2016

The assumption here is that that increased value is NPV positive based on other potential uses of the capital that you could have gotten up front. Higher potential LTV: The argument that over time, you’ll be able to extract more value from a customer than you would have if they paid it all up front.

Revenue 53

Revenue NPV Valuation Forecast 53

crowdSPRING Blog

OCTOBER 12, 2015

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Past costs, whether an investment of time or money, should never be used in evaluating a decision. A great illustration of sunk cost?

NPV 48

NPV Net Present Value Small Business Valuation 48

crowdSPRING Blog

OCTOBER 18, 2010

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Past costs, whether an investment of time or money, should never be used in evaluating a decision. A great illustration of sunk cost?

Small Business 106

Small Business NPV Net Present Value Valuation 106

andrewchenblog.com

JANUARY 28, 2010

I’ve written extensively on paid user acquisition in the past, particularly the blog post: How to calculate cost-per-acquisition for startups relying on freemium, subscription, or virtual items biz models. Regards, Stefan blog comments powered by Disqus Recent posts Want more? Kirk SharelOmer Just read it again!

CPA 51

CPA Retention Viral Acquisition 51