Business Model Post-Money Valuation Product Revenue 
Lightspeed Venture Partners
OCTOBER 7, 2012
The first company started as a BBQ catering business, and eventually focused in on their most popular product, a dip made of blended up chicken plus various sauces. While they were very complimentary of the team and product, they all gave versions of the “I’m not the right guy to help, so I’m out” pass.
Lightspeed Venture Partners
OCTOBER 1, 2012
On the other hand, a 7% royalty means that Kevin and Barbara got to keep 93% of future revenues. The entrepreneur claimed that her patent was weak and as a result competitors had copied her product and were collectively doing $30-40M in sales. The product retails for $39.95, wholesales for $19.95, and costs just $5 to make.
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Lightspeed Venture Partners
NOVEMBER 12, 2012
He would only be investing if Drive Suits got a manufacturing deal, and if his estimate of a 7-10% royalty is correct, the he would recoup his investment if the product did more than $150,000/7% (royalty)/30%(his share of the company) or just over $7m in sales. He came off as unprepared. All entrepreneurs have passion. That is not enough.
betashop.com
OCTOBER 8, 2012
It’s all about the product. The only thing that matters is how good your product is. At Fab, our virtual product is our website & apps, our physical products are the merchandise we sell, and our experience product is our operations and service. Getting all 3 parts of our product right is everything.
Lightspeed Venture Partners
SEPTEMBER 23, 2012
The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. They plan to franchise the model (presumably including selling equipment plus a certification program). post money valuation. implying a $600k post money valuation.
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