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ESADE Business School Commencement Speech

Steve Blank

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard. We legalized robbing the corporate treasury.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

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Why Companies are Not Startups

Steve Blank

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. A business model guides an organization to create and deliver products/service and make money from it.

IRR 335
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Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. These metrics make it difficult for a company that wants to invest in long-term innovation. These resulting business models made them look incredibly profitable.

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How does pedigree affect fundraising?

Hippoland

And all of the companies I pick are at roughly the same stage — all seed companies who have launched a product and have some semblance of traction, though this ranges quite a bit. Even if it’s tough to raise money now, eventually, business metrics will trump all at the later stages; that’s what investors will care about then.

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The art and science of valuing websites

The Next Web

Income-based valuations consider aspects like CAPM (capital asset pricing model), IRR (internal rate of return), NPV (net present value), WACC (weighted average cost of capital), NCF (net cash flow), and GAAP (generally accepted accounting principles). Asset approach. The quality, reliability and cost of site traffic.

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When Entry Multiples Don’t Matter

Ben's Blog

A multiple is a company value divided by a metric. This growth could be a function of product differentiation, go-to-market operations, sheer market size, new geographies, and expansion into adjacent categories. Not too shabby!