BeyondVC

OCTOBER 11, 2007

If you decide to build for the long haul and go for the home run, it will take you a fair amount of effort and time to create the same value that acquirers will pay today at the buzz cycle as they will expect more mature companies to have more established products or services and more milestones hit.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

David Teten

NOVEMBER 15, 2013

However, I’ve seen many VCs who value companies as an option: the company has a 1% chance of being worth $1b, therefore it’s worth $10m. This may make sense from the individual perspective of a given VC, but collectively it ensures that early-stage companies are overvalued.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Cracking the Code

OCTOBER 10, 2008

To answer the second question and make sure you are building a profitable business, the key indicator to look at is the Customer LifeTime Value (CLTV). The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. A profitable business will have a positive CLTV.

Software Review 48

Software Review North America Europe Metrics 48