Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

reidhoffman.org

NOVEMBER 12, 2013

we had no revenue. You may happen to emphasize the right points that pique an investor’s interest, but you shouldn’t leave your financing up to chance. Second, understand the broader financing climate. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. I know the argument: The pay-back period on sales, marketing, and up-start costs is long, but there’s a profitable result at the end of the tunnel.

Business Model 335

Business Model .Net Revenue IPO 335

Cracking the Code

FEBRUARY 23, 2011

It would have been easy to explain the difference by changes in the 2010/2011 revenue growth projections but unfortunately that is not the case. revenues while large caps are trading at 6.4x. Popular Media: the key to viral marketing. McKinsey highlight #1: the art of cost cutting or. Yahoo Finance. What happened?

Software Review 101

Software Review Technical Review Valuation Europe 101

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. He worked as an engineer and then went into finance for many years and then was recruited to be president of a biotech company, diagnostics company. I never really got it.

Technical Review 68

Technical Review Software Review Finance Technology 68

Rob Go

MAY 26, 2016

I’ve been thinking a little about non-recurring revenue businesses. I’m coming to the belief that these are under-appreciated categories of investment, especially since the gospel of recurring revenue, subscription commerce, and SaaS has been preached in recent years. That is not good. Some categories just are this way.

Revenue 53

Revenue NPV Valuation Forecast 53

YoungUpstarts

NOVEMBER 30, 2018

A supplier could go bankrupt or an angry customer’s tweet could go viral, there is an infinite number of things that can cripple a new business. Whether it’s having a PR plan or back up finances, being prepared will ensure your business can survive. Cut Unnecessary Costs. Record Every Transaction.

Entrepreneur 124

Entrepreneur Forecast Salary Viral 124

mashable.com

NOVEMBER 30, 2010

Determining which of these methods of staffing software development projects is right for your company can be a challenging endeavor, and three opposing characteristics of business need to be considered: cost, risk and convenience. Below is an overview of what you need to consider and the pros and cons of each option for IT staffing.

Software Developers 79

Software Developers Software Development Software Review Software 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. Finance Dissertation Help.

Software Review 63

Software Review Technical Review Cloud Forecast 63

ReadWriteStart

APRIL 4, 2023

These fees are charged to cover the costs of operating the crowdfunding platform, including marketing, payment processing, and customer support. A campaign should only be used if your product has a “viral” quality to it. The crowdfunding act itself becomes a marketing strategy.

Startup 141

Startup Campaign Cofounder Venture Capital 141

ReadWriteStart

APRIL 1, 2020

Such businesses will likely emerge as leaders that will help prepare for the “next big issue” due to their flash-in-the-pan revenues and quick notoriety. Similarly, Uber offered greater efficiency in transportation at a lower cost, while still benefiting its own bottom-line by avoiding a W2 workforce.

Startup 120

Startup SEO Private Equity Venture Capital 120

Steve Blank

FEBRUARY 22, 2010

I had been confused for years why I had to update an income statement each board meeting that said zero for 18 months before we had any revenue. How do we finance the company, etc. For web startups, this is when the cost of customer acquisition is less than the lifetime value of that customer. Cost Per Acquisition Paid.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

mashable.com

JULY 18, 2012

GLIIF’s initial offering includes a brand-able and blend-able custom encrypted image at a low cost of entry, pre re-direction marketing services and full analytics. Setting a value is always difficult especially when you come across so many companies that are pre-revenue and sometimes pre-monetization strategy. viral video.

San Francisco 104

San Francisco Acquisition Social Media Mobile 104

Startup Lessons Learned

APRIL 14, 2009

Lessons Learned by Eric Ries Tuesday, April 14, 2009 Validated learning about customers Would you rather have $30,000 or $1 million in revenues for your startup? All things being equal, of course, you’d rather have more revenue rather than less. And yet revenue alone is not a sufficient goal. More on that in a moment.

Customer 167

Customer San Francisco Lean Hockey Stick 167

Steve Blank

DECEMBER 7, 2010

What are your hypotheses around customer acquisition costs? Actually engage in “search engine marketing” (SEM)spend $20 as a team to test customer acquisition cost. change messaging on site during the week to get costs lower, team that gets lowest delta costs wins. Get real costs from suppliers.

Wiki 311

Wiki Lean Management Business Model 311

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Capital has built a free online tool for founders to calculate their cost of capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ConversionXL

JULY 7, 2020

Even industries like finance can gain traction on Pinterest. Since finance is one of the most competitive and expensive niches on Google Ads , it’s a unique—if challenging—opportunity on Pinterest. They did it by: Focusing on personal finance, which allows them to showcase moving stories of individuals. But it can be done.

Marketing 114

Marketing Viral Campaign Search 114

Cracking the Code

DECEMBER 1, 2009

Popular Media: the key to viral marketing. McKinsey highlight #1: the art of cost cutting or. Yahoo Finance. The recession created opportunities! Software 2.0: How the use of internet is transform. ► 03/25 - 04/01. (1). Global warming: a plague for humanity? ► 03/18 - 03/25. (1). ► 02/11 - 02/18. (2).

Software Review 48

Software Review Technical Review Cloud Europe 48

Cracking the Code

MARCH 10, 2008

I found this approach interesting, but it seems to me that gross margin is a more relevant benchmark than revenues, given that the GM of saas companies varies by type of application and size of the company (for example NetSuite went from about 50% GM three years ago to close to 70% today).

Sales 79

Sales Software Review Marketing Technical Review 79

Up and Running

MAY 23, 2016

In fact, SaaS industry revenue is projected to grow from $49 billion in 2015 to $67 billion in 2018, a compound annual growth rate of approximately eight percent. The software was sold based on installation cost running on local servers for enterprises—which was very, very expensive. Step 5: Get financed.

Software Review 74

Software Review Software Delaware Forecast 74

Cracking the Code

OCTOBER 9, 2009

This strong recovery has highlighted the resiliency of the recurring revenue model in a downturn as well as the stength of the shift to soaftware-as-a-service and cloud computing. One way to measure this productivity is to look at the Customer Acqusition Cost ratio that I have defined in a previous post. Yahoo Finance.

Software Review 48

Software Review Technical Review Cloud Europe 48

Startup Lessons Learned

MAY 11, 2020

There's a good enough vaccine to get the virality rate below one. Yet, it's the startup community that has gone all in on decisive action, even though relatively speaking, the cost for some of these startups, it'll be suspending the whole company or maybe risking the whole company on the solution. ER : I've seen the same thing.

Silicon Valley 68

Silicon Valley Technical Review Government .Net 68

Cracking the Code

NOVEMBER 10, 2009

Get instrument rated, and trust the 6Cs of Cloud Finance (more.) Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! That is, if a company had a sales cycle of 6 months, should they include the past 2 quarters' of costs and not just the last quarter?

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

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

Steve Blank

OCTOBER 10, 2016

She and her team ran a successful Kickstarter campaign, went through the Techstars Boulder 2015 accelerator program, and recently closed a $3 million financing round with The Foundry Group. . We naively thought we would have a viral campaign, but it took us 4 months to create and cost us $25,000.

Entrepreneur 260

Entrepreneur Cofounder San Francisco Campaign 260

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% What is my cost of capital and how much is worth an incremental upfront payment?

Software Review 91

Software Review Clawback Sales Salary 91

Both Sides of the Table

MAY 23, 2012

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. They need a combination of capital and experience to separate from the rest of the pack – the low cost of starting a business means it is even more vital to become the market leader more quickly. The Exit Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

mashable.com

MAY 24, 2011

Mobile commerce revenues may still pale in comparison to their ecommerce brothers, but we’re already seeing signs of mobile commerce’s potential. The added cost of converting your existing web-based customers to new native app customers might make any benefits of increased conversion useless. ); // Welcome to Mashable!

Mobile 90

Mobile Web Social Media Software Review 90

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Michael Kassing.

Software Review 48

Software Review North America Europe Metrics 48

ReadWriteStart

JUNE 29, 2020

There has never been a viral outbreak of such magnitude before. It means relying on your own savings and revenue to operate and expand.”. Your data will be ordered and structured into information based on specific niches like engineering and construction, finance, technology, and business.

Bootstrapping 85

Bootstrapping Global Startup Hungary 85

Cracking the Code

NOVEMBER 10, 2009

It is intriguing to see the M&A dynamics in the space, highlighting the interest of tech companies for recurring revenue streams - even SAP announced in their analyst call earlier this month that they were moving from perpertual licenses to five year term licences. Popular Media: the key to viral marketing. Yahoo Finance.

Software Review 48

Software Review Technical Review IPO Cloud 48

mashable.com

NOVEMBER 4, 2010

However, they should be mindful as the brand and revenues grow, free optimization tools can have a negative impact on Total Cost of Ownership. But any testing (even free) is good--as playing guess games with your content will cost you business to your competition in the long run. com) newsletter. What will you find here?

Developer 73

Developer Software Review PHP Social Media 73

www.forentrepreneurs.com

FEBRUARY 2, 2010

The company has just missed its quarterly revenue forecast. Lets take an example, and look at how they might do this: They will be able to tell you that revenue is composed of deals. To compute revenue, you multiply average deal size by number of deals. Bookings is the pre-cursor to Revenue. Obvious, isn’t it?

Metrics 55

Metrics Design Entrepreneur Startup 55

Genuine VC

APRIL 30, 2008

After the crash at the end of the last decade, web startups clamped down to focus on their core value proposition and were forced out of necessity for survival to hone their revenue models. The stories of tremendous growth in adoption with the promise of revenue later on has been enough to excite both entrepreneurs alike.

Distribution 103

Distribution Widget Viral Social Media 103

mashable.com

SEPTEMBER 14, 2011

If you’re working with an open source project, for example, it’s important that you have a definitive business model to drive revenue — though not at the cost of alienating your community of core contributors. To that end, companies will offer enterprise-ready software that comes with additional features, services and support.

France 77

France Marketing Social Media Startup 77

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 24, 2011

Totally automate all that so it doesn’t bring me down all the time and instead I can sign all the revenue, because that’s fun. Do you feel like the more users you have it helps accelerate, is there some kind of, maybe not necessarily viral, but that people just tell their friends at all. Patrick: How close did he get?

Cofounder 208

Cofounder Technical Review Software Review Differentiation 208