Non-Linear Growth

JANUARY 14, 2016

What was unusual about this Powerball drawing is that the NPV of an investment in a ticket was not far from break-even. I encouraged them to not only think about the NPV of the investment but also to look at the distribution of returns. We considered the question: Even if buying a Powerball ticket had a positive NPV, would it be a good investment? With such high odds of losing, does it even matter if the NPV is positive?

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NPV Venture Capital Distribution Conversion 22

Mark Birch

SEPTEMBER 24, 2012

“Organic users typically have a higher NPV, a higher conversion rate, a lower churn, and are more satisfied than customers acquired through marketing spend. LTV heavy companies are in denial about this point.” - “ The Dangerous Seduction Of The Lifetime Value (LTV) Formula ” by Bill Gurley. LTV startups marketing metrics spend

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Startup Professionals Musings

OCTOBER 21, 2015

In addition, the best companies compare the negative and positive cash flows over a period of time to determine the net present value (NPV) of planned future marketing spending.

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Metrics NPV Net Present Value Conversion Ratio 66

Rob Go

MAY 26, 2016

The assumption here is that that increased value is NPV positive based on other potential uses of the capital that you could have gotten up front. I’ve been thinking a little about non-recurring revenue businesses. Particularly, businesses where transactions are large, but infrequent.

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Revenue NPV Valuation Forecast 46

Gust

NOVEMBER 18, 2012

NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M. Image via eHow.com.

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Valuation Pre-Money Valuation NPV Intellectual Property 103

ConversionXL

AUGUST 10, 2016

In this case receiving 6 texts has a PPV of 26% and an NPV of 93%. What’s more, an NPV of 93% means that people not exhibiting this behavior are almost definitely going to churn, lending further evidence to the need to get people receiving the texts. William A.

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Metrics NPV Retention San Francisco 18

crowdSPRING Blog

OCTOBER 12, 2015

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. EDITOR’S NOTE: We originally published this post back in 2010.

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NPV Net Present Value Valuation .Net 24

Burnham's Beat

FEBRUARY 13, 2006

« Vonage: Its All About Customer NPV | Main. Burnhams Beat. Articles on Technology and Finance. About Bill. Archived Posts. Blog Roll. IPO/M&A Lists. By Category. By Month. Recent Posts. Internet IPOs. Internet M&A. Software IPOs. Software M&A. Search This Blog. Subscribe to This Blog. RSS/ATOM Feed. Subscribe Via Email. Long or Short Capitals Web 2.0 Analysis » 02/13/2006. Edgeio and the “Write Once, Publish Everywhere” Web.

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the vc in me

NOVEMBER 21, 2011

I wonder if that creates a lower NPV given the preponderance of the terminal value in any NPV calculation. the vc in me. Welcome! This blog broadcasts my thoughts on sectors of interest in my role as a venture capitalist as well as other ideas or tidbits on the business of entrepreneurship. I hope to engage entrepreneurs, VCs, and anyone else in dialogue! Archives. Profile. Subscribe. « Guest Post from HBS Professor: The Nuances of Marketplaces | Main.

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NPV Jordan Social Media HTML 14

Blogtrepreneur | Entrepreneur Blog

SEPTEMBER 15, 2015

You then map out the cashflows of the website, discount them back to their value today (known as the Net Present Value, or NPV), add up the NPVs coming from the different cashflows, and arrive at a valuation. Author Bio. George is a website investor and writes about website investing, due diligence, and earnings optimization at WiredInvestors.com.

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Valuation Due Diligence NPV eCommerce 12

andrewchenblog.com

JANUARY 28, 2010

Andrew Chen New here? Check out my list of featured essays How to create a profitable Freemium startup (spreadsheet model included!)

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Retention CPA Viral NPV 26

Both Sides of the Table

SEPTEMBER 7, 2009

Don’t forget that long after you forget the CAPM pricing model, how to do regression analysis or how to calculate NPV without a spreadsheet – your network should endure. This is part of my ongoing series called “ Start-up Lessons.&#.

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NPV Balance Sheet Chicago Database 32

Platforms and Networks

JULY 27, 2011

Up to some point—I* in the figure below—increasing investments should boost a firm’s net present value (NPV), but at a diminishing rate as the cost of acquiring each additional customer rises. This post is part of a series on business model analysis for entrepreneurs.

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NPV Acquisition Viral Net Present Value 5

SoCal CTO

MAY 19, 2010

The example he uses is: THE RAISE Investment $500,000 Pre Money $600,000 Post Money $1,100,000 OWNERSHIP Founders 55% Investors 45% EXIT Sale Price $5,000,000 Time 5 years INVESTOR RATIOS ROI 355% Multiple 4.55x IRR 35% NPV @ 10% $828,000 Admittedly that valuation and the resulting ownership causes me to wonder, but the most interesting aspect is that Bob is talking about investing in a much smaller exit, with no future investment planned.

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NPV Hockey Stick IRR Forecast 3

Inc Startups

JANUARY 13, 2012

A detailed NPV (net present value) calculation is not always necessary but may be useful to categorize opportunities in terms of size and risk. A short list of high-value opportunities will keep you focused on what really matters.

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NPV Net Present Value .Net Acquisition 2

Launching Tech Ventures

MARCH 16, 2013

The NPV of these jobs is much higher than doing a startup. Even with passion the NPV of a startup is horrible. By Gabriel Parisi-Amon Over the past few years “I’m doing a start up” has become the mid 2000s version of “I’m an investment banker.” And although I believe that more awareness about starting ventures is a great thing, I think that following the herd into the startup world is dangerous.

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Adventurista

SEPTEMBER 14, 2010

The textbook definition of CLTV is the net present value (NPV) of the profit from a customer’s purchases.

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Customer NPV Net Present Value Acquisition 1

Tim Keane

JULY 6, 2006

Download of_angel_investors_npv_and_irr.pdf. Download of_angel_investors_npv_and_irr.pdf. Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. Archives. Profile. Subscribe. « Managing Investor Relationships | Main. Reduce Your Startup Risk » July 06, 2006. Whos Who of Angels. This is an interesting article from todays VC Experts website (vcexperts.com) that they forwarded to me.

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NPV Startup Wisconsin Bootstrapping 0

Taffy Williams

MARCH 31, 2011

One common way to do this is via an NPV (Net Present Value) calculation in a spreadsheet or a second is to determine value based on comparables in the market place. Startup Blog Steps to consider to start and grow a company. Basics are provided to help entrepreneurs.

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IP Intellectual Property NPV Term Sheet 4

crowdSPRING Blog

OCTOBER 18, 2010

In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. Einstein once said, “Common sense is the collection of prejudices acquired by age eighteen.&# Common sense, Einstein was arguing, can often be the enemy of rationality, science, and fact-based decision-making.

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Leadership Startup NPV Net Present Value 4

Launching Tech Ventures

FEBRUARY 24, 2013

If we learned anything from RC Fin, it's that for-profit businesses are as valuable as the NPV of their expected cash-flows. By Mike Rothenberg Marc Andreessen famously writes that "the only thing that matters is product-market fit" (1).

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Adventurista

SEPTEMBER 16, 2010

As discussed in Rule #2 , CLTV is the net present value (NPV) of the profit from a customer’s purchases. These 6 “Cs” are metrics that provide an unparalleled window into the health of your online retail business.

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NPV Metrics Conversion Net Present Value 1

Ask the Angels

JULY 31, 2009

Two other statistics that also come up are Net Present Value (NPV) and Internal Rate of Return (IRR). NPV @ 10% $828,000. Following on the heals of last week’s post from Andrea Belz, we have another guest blogger, Bob Aholt. Bob is a Director and long-time member of the Pasadena Angels, has been investing in early stage companies for 5 years, and has been held numerous “C” level positions at private and publicly traded companies.

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Finance NPV IRR Startup 0

Startup Professionals Musings

SEPTEMBER 6, 2010

NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M.

Pre-Money Valuation 1

Pre-Money Valuation NPV Intellectual Property Early Stage 1

Launching Tech Ventures

MARCH 16, 2013

If you value the NPV of the expected cash flows in your life, it is not clear either way. By Mike Rothenberg I’d like to write a response to a WSJ editorial by 24-year old college drop-out Dale Stephens earlier this month, entitled “A Smart Investor Would Skip the (Harvard) MBA”.

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Launching Tech Ventures

MARCH 16, 2013

It almost takes an irrational passion to pursue the NPV path of a particular startup. By Jacob Montoya As an entrepreneur following the lean startup philosophy, how do you know when to stop pivoting and pull the plug on your venture? Is this decision easier or harder in a lean startup? Deciding when to stop pivoting and pull the plug can be a difficult decision, but it is easier for those pursuing the lean startup philosophy.

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The Next Web

DECEMBER 16, 2012

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).

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Valuation NPV IRR Revenue 2

Allen's Blog

MAY 20, 2007

We don't want to criticize Google for making positive NPV investments even if they have much lower ROI than their core products. allensblog. Thoughts from a startup sherpa. Archives. Profile. Subscribe. « Clothes (Online) Make the Man | Main. Quick Notice about the NYT Situation » May 20, 2007. Too Much of a Good Thing.? Historians (especially economic historians) widely believe that nations that discover a single huge natural resource (e.g.,

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Saudi Arabia NPV Spain South America 0

Burnham's Beat

FEBRUARY 2, 2006

Vonage: Its All About Customer NPV » 02/02/2006. Burnhams Beat. Articles on Technology and Finance. About Bill. Archived Posts. Blog Roll. IPO/M&A Lists. By Category. By Month. Recent Posts. Internet IPOs. Internet M&A. Software IPOs. Software M&A. Search This Blog. Subscribe to This Blog. RSS/ATOM Feed. Subscribe Via Email. « A Unified Theory of Search, Social Networking, Structured Blogging, RSS and the Active Web | Main. Virtual Stock Portfolio: January 2006.

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