SoCal CTO

JUNE 9, 2010

Solving the "marketplace" business model - A Smart Bear: Startups and Marketing for Geeks , May 10, 2010 A sizable percentage of Capital Factory startup submissions take the form of the "marketplace." " In fact, 3 of the 10 selected companies from the past two years has followed this business model.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

The Startup Magazine

APRIL 24, 2020

Whether you’re interested in selling a website you built from scratch, or want to sell your Amazon-based B2C brand, there are many different baseline factors that go into determining an appropriate website valuation number. While it’s true that valuations can get quite technical, the basics are relatively easy to understand.

eCommerce 92

eCommerce Valuation B2C Revenue 92

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. The main multiple we like to use for marketplace businesses is GMV (Gross Merchandise Volume…the total volume of goods sold on the marketplace). Our assumptions for this valuation: Scale: > $1b GMV. for 2015 GMV.

Valuation 60

Valuation Early Stage IPO eCommerce 60

Startup Professionals Musings

MAY 1, 2019

With the real data from that surge, you need to take a hard look at business model realities, cost of customer acquisition, inventory costs, and other key metrics. Here is my summary of the key focus activities of that challenge for every business owner: Manage cash flow daily and plot a plan to profitability.

Silicon Valley 215

Silicon Valley Bankruptcy Metrics Valuation 215

crowdSPRING Blog

NOVEMBER 1, 2013

Why Small Businesses Are Building Remote Workforces | Business Insider - crowdspring.co/1aHHoaf. Good whitepaper on advertising measurement metrics | by Ben Kunz – crowdspring.co/HsVIMR. Qualities Of Truly Great Employees | Business Insider by Dharmesh Shah - crowdspring.co/1h0QmFY. Nuts - crowdspring.co/1akpXj7.

Social Media 94

Social Media Small Business Design Media 94

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. However there is a lot of value in looking at these same metrics for all other businesses.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Growthink Blog

APRIL 15, 2015

Now given that the company has yet to even come close to breaking even, this can be viewed as either a great validation of Domo''s business model, or as more evidence of the “Bubble Mania” of the current technology financing landscape and a screaming signal to get out while you still can.

Valuation 48

Valuation Venture Capital Finance Acquisition 48

Startup Professionals Musings

AUGUST 8, 2016

Validate your business model on real customers. Giving free beta copies of your solution to customers to elicit testimonials does not validate a business model. The best business models benefit social needs as well as business needs. Every business requires spending money to make money.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Startup Professionals Musings

AUGUST 7, 2015

How the solution and business model work to fund the business. Investors will impatiently expect a winning business model, customer segment definitions and volume projections. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Startup Professionals Musings

AUGUST 13, 2012

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

David Teten

AUGUST 6, 2015

Some model users will want to stress-test assumptions and explore the detailed calculations throughout a model, but many important decision makers will only want to look at selected outputs (e.g. financial statement summaries, valuation analysis, ratio analysis, etc.) once a model has been finalized.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Startup Professionals Musings

MAY 13, 2011

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Version One Ventures

DECEMBER 7, 2016

As investors, we love the underlying business models, including the daily use case, virality, and network effects. There are chapters on metrics, exits, valuations, as well as our outlook for future opportunities in social. Why social? As individuals, we use social platforms on a daily basis.

Artificial Inteligence 60

Artificial Inteligence Viral Valuation Networking 60

Up and Running

JULY 22, 2019

To help investors get an insider view on company growth, it’s important to share meaningful metrics consistently. If you take less money at a lower valuation, you can then prove the execution of your business and raise additional rounds at sequentially higher valuations. Start early. Do not be greedy.

Canada 78

Canada Early Stage Valuation Finance 78

VC Cafe

OCTOBER 23, 2022

” No one questions the importance of revenue, but asking the question enabled us to start thinking on what would be the right metric. Did you know that companies like Airbnb, Spotify and Netflix purposely avoid setting revenue as their North Star Metric? Why is revenue not a good ‘North Star’ Metric?

Metrics 179

Metrics Revenue B2C Portfolio 179

cdixon.org

AUGUST 3, 2012

Some consequences: - For consumer startups with non-transactional models (ad-based or unknown business models), you need something closer to 10 million users versus 1 million users to get Series A funded. - Hence, many early-stage consumer startups are switching to transactional models. -

Bridge Financing 86

Bridge Financing Early Stage Valuation Later Stage 86

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Gust

AUGUST 5, 2012

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. So the shift to mobile meant Facebook’s business model was breaking. Remember this is revenue , not valuation. Zoom out to see the strategic decision.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Startup Professionals Musings

NOVEMBER 2, 2018

Employs a profitable business model with customer traction. A winning business model, like Zappos, often benefits social needs as well as business needs. But business models need to be validated by paying customers (beyond free trials) before they are credible.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48

Startup Professionals Musings

APRIL 22, 2010

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

David Teten

DECEMBER 3, 2019

Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Modano standardizes Excel models to improve comparability and reduce error rates.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Austin Startup

SEPTEMBER 17, 2017

A business model must be created out of whole cloth, and generally it’s a compilation of assumptions piled on top of other assumptions. Every model has a happy outcome when a founder is trying to convince himself or herself, a team, an investor, or even a spouse that the venture ahead is a good idea.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Steve Blank

OCTOBER 24, 2017

— all great things when you are executing and scaling a known business model. Because the new CEO had built a team capable of and comfortable with executing an existing business model, the company would fail or get acquired. Board Control. For three decades (1978-2008), investors controlled the board. The founders.

Founder 245

Founder Technical Review CTO Hire IPO 245

David Teten

FEBRUARY 9, 2015

If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.” Business Model. However, we want to know that you are expert in your market and that you have thought about the key issues inherent to your business. How do you make money?

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

Cracking the Code

DECEMBER 2, 2006

Today, VARs are the key to the SMB segment and their business model is collapsing, opening new opportunities for them and for technology providers. To survive, VARs need to change their business model and move from product sales to services. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). My Investments.

Software Review 48

Software Review Technical Review Europe Software 48

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Business Model. Expenses?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

The Equity Kicker

OCTOBER 8, 2012

They need to maximise for growth whilst either getting to profitability within their existing resources or maximise for increase in valuation at the next round by thinking of the milestones they can hit before running out of cash. Most companies aren’t so lucky. Sometimes investors are convinced. Sometimes not.

Silicon Valley 149

Silicon Valley IPO eCommerce Valuation 149

Rob Go

FEBRUARY 5, 2012

Usually financial metrics are pretty sparse at early stages and investors have a hard time giving companies “credit” for steady, linear progress. The reason is that the next MAJOR and OBVIOUS value-inflection point is evidence of a repeatable and scaleable business model. Or, just go for exceptional growth.

Business Model 65

Business Model Seed Stage Valuation Vertical 65

Rob Go

FEBRUARY 9, 2014

These are all the proof points that the business is working, and can range from actual financial metrics to even subjective things like how industry experts and potential customers are perceiving the idea. The kinks in the curve show the major milestones for most business. This is the second kink in the curve.

Vertical 78

Vertical Valuation Framework Metrics 78

Professor VC

AUGUST 26, 2011

What are the key drivers and metrics? Is the model consistent with the business plan? Does the business model make sense? Do you understand the business and market? Byron Deeter has a good blog post on SAAS metrics. When I look at a model, I care most about the assumptions around the business model.

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

Cracking the Code

DECEMBER 16, 2006

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. SaaS business metrics: why are they different? S&M productivity (CAC ratio) for the SaaS 13 Index. Note: high CAC ratio means high productiviy (see blog post for definition). My Investments. CornerstoneOnDemand. anecdotes. (13).

Software Review 48

Software Review Silicon Valley Technical Review Software 48

crowdSPRING Blog

MAY 8, 2015

The Angel VC: Key Revenue Metrics for SaaS companies – buff.ly/1INSu29. Valuation As A Scorecard – buff.ly/1F0CUyC. Online Courses Accelerate Any Business Model bit.ly/1InOB3Z. What is the ideal size and make-up of a team for a pre-revenue SaaS startup? – buff.ly/1EY9ktL. 1beNtlI.

Small Business 48

Small Business Design Social Media Startup 48

Hearpreneur

AUGUST 5, 2020

The global automakers and suppliers will be adapting their business models accordingly, forming new partnerships and investing in new technologies. These businesses have had to completely reimagine their business models and will likely be pivoting for a long time to come. 10- Virtual field trips for kids.

Technical Review 154

Technical Review Software Review Entrepreneur China 154

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. The mobile world brings enormous business opportunities and changes to business models that were unthinkable when VCs made investments ten years ago that produced the last decade of results.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347