Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis. Isn’t accounting fun?

Revenue 179

Revenue Valuation .Net IPO 179

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Managing business growth is more than metrics. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

OCTOBER 12, 2017

Whether you’re simply trying to scale your business or seeking equity investment, having a plan is key. . Keep an eye on these important metrics. As a small business owner, I found these metrics to be crucial to understanding the health of my business from a financial perspective. This is a metric you just can’t ignore.

Metrics 128

Metrics Software Review Forecast Small Business 128

Up and Running

MAY 15, 2014

As an entrepreneur raised in the era of analytics, I want to find metrics for everything. At the end of the month, we’d evaluate the partnership and discuss equity. At our one-month meeting, my equity offer reflected this feeling, which in turn, led my potential partner to pursue other opportunities. I could hustle.

Partner 113

Partner Cofounder Equity Metrics 113

Occam's Razor

APRIL 23, 2012

While there is a great deal of appreciation for the power of metrics/data, I've come to realize that Sr. Leaders don't quite appreciate the deep, and often corrosive, consequences of choosing metric x over metric y as a key performance indicator (KPI). It is a standard metric. Revenue vs. Economic Value.

Metrics 152

Metrics Analytics Search Channel 152

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. Cloud-based data warehouse Snowflake had an ambitious goal to triple its revenue.

Customer 98

Customer Marketing Channel Acquisition 98

Startup Professionals Musings

JUNE 8, 2019

A recent high-profile one, Theranos , the blood-testing company, had no trouble getting customers, but promised more than their technology could deliver, Another, Shyp , an early on-demand delivery platform, blamed their demise on premature scaling. Demand continuous innovation to keep up with change.

Angel Investor 220

Angel Investor Equity Leadership Demand 220

Startup Professionals Musings

SEPTEMBER 1, 2019

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Managing business growth is more than metrics. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Steve Blank

MARCH 4, 2014

It describes the product/service, who is it for, what channel sells/deliver it, how demand is created, how does the company make money, etc. They measure their success on metrics that reflect success in execution, and they reward execution. These metrics stack the deck against a company that wants to invest in long-term innovation.).

IRR 335

IRR Startup Business Model Agile 335

crowdSPRING Blog

DECEMBER 13, 2018

But if you want to accelerate growth and improve your revenues and profits, you need to up your game. There are three parts to a good competitive analysis: (1) defining the metrics and identifying the competitors you’re comparing, (2) gathering the data, and (3) the analysis. Start by defining what metrics are important.

Marketing 162

Marketing Charlotte Naming Design 162

The Next Web

FEBRUARY 27, 2014

Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g., your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Startup Professionals Musings

SEPTEMBER 13, 2017

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Managing business growth is more than metrics. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Startup Professionals Musings

NOVEMBER 3, 2013

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Managing business growth is more than metrics. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

ConversionXL

JANUARY 18, 2022

Founded in 2015, revenue intelligence startup Gong is now valued at $7.25 When someone shares your YouTube video on Twitter, you can track that metric. Generating demand makes the story more about your brand. Meeting demand is much easier out of the gate than generating demand. Around 77.5%

Social Media 145

Social Media Audience Media Marketing 145

ConversionXL

MAY 14, 2014

Internally, Adria was able to summarize eCommerce by one simple equation: Visitors *conversion rate *Average Order Size = Revenue. Tests with interesting results quickly get management attention , and an addictive demand for more testing invariably follows. Always show revenue gains , not conversion increase percentages.

Conversion 124

Conversion eCommerce Technical Review Software Review 124

Up and Running

MAY 1, 2014

Milestones and Metrics. Your prices need to match up with consumer demand and expectations. Milestones and Metrics. While the Milestones and Metrics chapter of your business plan may not be long, it’s critical that you take the time to look forward and schedule the next critical steps for your business. Read more ».

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Both Sides of the Table

JUNE 12, 2010

-Company grew by more than “400% each year” for past few years [assume growth metric = revenues]. Competition: Chegg (has raised $144 in debt and equity)—estimated by Steven Carpenter ( TechCrunch ) to be 10x more unique visitors than BookRenter (during peak book renting seasons) with nearly $140mm in revenues for 2010.

Venture Capital 217

Venture Capital Los Angeles Oakland Asia 217

Startup Professionals Musings

FEBRUARY 4, 2015

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Managing business growth is more than metrics. There is no free lunch.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

maplebutter.com

JANUARY 8, 2013

Written By Dan Martell on February 2nd, 2012 | Category: Hiring LeanStartup Marketing Metrics Startup Life | 6 Comments. Building Metrics / Usage Reports / KPI 3. Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. Why do I do it?

Technical Review 44

Technical Review Startup Cofounder Software Review 44

K9 Ventures

APRIL 9, 2014

The low supply and high demand is driving up the valuations and deal sizes. Threshold for an IPO is higher Ten years ago, if you had $20M in revenue you were ready to go public. If you have <$100M in revenue, you’re probably going to stay private. The companies that get to traction have a lot of capital chasing them.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

K9 Ventures

OCTOBER 10, 2017

If the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started? 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. Series A is the new Series B. (~6M-$15M

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Cracking the Code

JANUARY 22, 2009

For SaaS companies, we found that MRR is the best metric on which to base sales commissions. 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. How do you clawback revenue from the sales guy? Ajay Mathur.

Software Review 91

Software Review Clawback Sales Salary 91

Women Entrepreneurs Can

MAY 9, 2019

During the early days, these are your key contributors and they must be willing to put as much sweat equity into the organization as you are. Scaling will increase the cost it takes to do business and it often does it before you’re able to generate additional revenue in the traditional way your company acquires sales.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Mike Michalowicz

DECEMBER 20, 2013

If you want to work together start off with 5% ownership each, and then each quarter assign equity based on performance, something that can be easily measured. A business plan is pure fiction, right down to the five-year revenue projections. The entrepreneur’s life is demanding. You will work long hours.

Business Plan 68

Business Plan Equity Revenue Partner 68

Ben's Blog

OCTOBER 29, 2020

The laws of supply and demand, and marginal pricing, withstand the test of time. Demand matters: IPOs are a bull market product Gauging demand for an IPO can be difficult, in part because so many IPO order books are over-subscribed. IPO “over-subscription” has also become a vanity metric for the bankers and the issuing company.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ConversionXL

APRIL 27, 2017

With a 404, link equity is totally lost. What’s important is that you see the revenue potential of every person who visits an out of stock product page and consider how you can salvage that potential. Unexpected demand. Why would you want to lose the link equity that you had worked so hard to obtain?

Stock 90

Stock Product eCommerce SEO 90

joel.is

DECEMBER 10, 2013

Within the Buffer team we have complete compensation transparency and every team member knows each others’ salary and equity stake through stock options. In fact, we share the bank balance and revenue numbers publicly. metrics@ - anything to do with company metrics. engineers@ - includes all our engineering team.

Email 55

Email Startup Stock Options Metrics 55

Pascal's View

NOVEMBER 15, 2011

equity capital markets for emerging growth companies with market capitalizations below $500 million are structurally broken and systemically dysfunctional. Dan’s second post did make it clear that there is considerable confusion over the relevant metrics to determine the health of the IPO market for small cap companies.

IPO 31

IPO Term Sheet Marketing United States 31

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Anything that hints of a down round brings questions about the success metrics that have already been “booked.” The same thing happened to many Internet stocks. ” Go public.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40