Trending Sources

Powerball: The Difference Between Gambling and Investing

Non-Linear Growth

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. With such high odds of losing, does it even matter if the NPV is positive?

NPV 22

6 Critical Marketing Metrics To Nail Today’s Buyers

Startup Professionals Musings

Even those things that worked yesterday may not work tomorrow, as the market matures, the culture changes, and competitors appear with new solutions.

"Organic users typically have a higher NPV, a higher conversion rate, a lower churn, and are more."

Mark Birch

“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

Non Recurring Revenue Businesses

Rob Go

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.

10 Rules of Thumb for Startup Investment Valuation

Gust

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.

Why (and How) Optimizers Should Take Advantage of User State Models

ConversionXL

In this case receiving 6 texts has a PPV of 26% and an NPV of 93%. William A. Unfortunately, it doesn’t work that way. Here Intercom.io

From the Vault: 7 biases that can effect your decision making

crowdSPRING Blog

EDITOR’S NOTE: We originally published this post back in 2010. I really loved this piece, but that could be my own susceptibility to #3, below…

NPV 24

Burnham's Beat: Edgeio and the ?Write Once, Publish Everywhere.

Burnham's Beat

« 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. Amazing. Blogs.

NPV 0

the vc in me.: The DISRUPTION of Brands

the vc in me

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. Archives. Profile. Subscribe. reputation).

NPV 14

Website Valuation Methods

Blogtrepreneur | Entrepreneur Blog

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. The following is a guest post from George, who writes about the process of website investing at Wired Investors. 100-$1000.

How to create a profitable Freemium startup (spreadsheet model included!)

andrewchenblog.com

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

Are MBAs Necessary for Start-ups or VC?

Both Sides of the Table

This is part of my ongoing series called “ Start-up Lessons.&#. I was reading Chris Dixon’s blog tonight. MBA fine, but not required.

NPV 32

Business Model Analysis, Part 6: LTV and CAC

Platforms and Networks

This post is part of a series on business model analysis for entrepreneurs. that match the needs of some customer segments better than others. years.

NPV 5

Building a Growth Agenda? Keep It Simple

Fresh Inc.: The Staff Blog

A detailed NPV (net present value) calculation is not always necessary but may be useful to categorize opportunities in terms of size and risk.

NPV 3

Angel Investment Criteria

SoCal CTO

I’m planning on going to a Tech Coast Angels mixer tomorrow and the topic for me is whether there is angel funding out there for startups that don’t meet classic VC models. If there are, then who are they, what are the criteria, what does it typically look like? Bob is heavily focused on ROI (and team/product). And I’m really wondering about that.

NPV 3

Passion: What Every Startup Needs, but Never Talks About

Launching Tech Ventures

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.” Startups can bring a person fortune and fame, but 99% of the time they don’t bring either.

eCommerce RULE #2: Customer Lifetime Value (CLTV) is your new pulse

Adventurista

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

NPV 1

Who's Who of Angels - Startups and angels: Along the way to success

Tim Keane

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. TrackBack.

NPV 0

Tips for small business: 7 biases that can effect your decision making

crowdSPRING Blog

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.&# Anchoring. Bandwagon effect. Confirmation bias.

The product-market fit obsession

Launching Tech Ventures

If we learned anything from RC Fin, it's that for-profit businesses are as valuable as the NPV of their expected cash-flows.

NPV 0

eCommerce RULE #3: The 6 “Cs” are your vital signs: Ignore them at your peril!

Adventurista

As discussed in Rule #2 , CLTV is the net present value (NPV) of the profit from a customer’s purchases. Tracking NPS is invaluable. Churn.

NPV 1

An Angel Investor’s Thoughts on Valuation

Ask the Angels

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 also teaches graduate level finance courses at Antioch University. By Bob Aholt. THE RAISE.

NPV 0

Ten Components of Startup Valuation For Investors

Startup Professionals Musings

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.

A smart investor fortunate enough to gain Harvard admission should get an MBA

Launching Tech Ventures

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”. Here’s my take: 1. It’s about your value system. HBS is both.

NPV 0

If the passion is gone.

Launching Tech Ventures

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?

NPV 0

The art and science of valuing websites

The Next Web

Once you decide to get your site in shape for a sale , it’s important to value it properly. Common methodologies. The income approach. Revenue.

Startup Blog: Getting Rights to the Technology

Taffy Williams

Startup Blog Steps to consider to start and grow a company. Basics are provided to help entrepreneurs. Remember this is a business. I Did What? Stuck?

allensblog: Too Much of a Good Thing.?

Allen's Blog

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.?

Burnham's Beat: Virtual Stock Portfolio: January 2006

Burnham's Beat

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. Long Picks.