Startup Revenue Milestones

K9 Ventures

At K9 we invest in companies which have a clear/direct revenue model and typically don’t invest in companies that follow the Ubiquity first Revenue Later (URL) revenue model made famous by Eric Schmidt in 2007. I call this Revenue Development and have written about it before.

How Do You Select A Revenue Model For Your Startup?

Startup Professionals Musings

One of the toughest decisions for a startup is how to price their product or service. The revenue model you select is basically the implementation of your business strategy, and the key to attaining your financial objectives. Your startup’s life depends on it.

Trending Sources

5 Reasons Startups Need Revenue As Well As Users

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit.

Revenue = Product Market Fit

Agile VC

This is a logical thing to do… when we started LinkedIn, my mentor Reid Hoffman instilled a mantra of Growth –> Usage –> Revenue which still holds for many consumer companies. But B2B startups need to take a different tack.

How Do You Select A Revenue Model For Your Startup?

Gust

One of the toughest decisions for a startup is how to price their product or service. The revenue model you select is basically the implementation of your business strategy, and the key to attaining your financial objectives. Your startup’s life depends on it.

Website Ads are Not a Revenue Stream for Startups

Startup Professionals Musings

One of the biggest red flags I see in many Internet-related business plans today is advertising as the initial revenue stream, or a key part of it. Until you get a million page-views per month, your revenue will be negligible, and advertisers won’t be interested in your site.

Market Type and Revenue. 2 Minutes to Find Out Why

Steve Blank

This 2-minute video explained “ why not all startups are the same ” and introduced the notion of “market type” and described the difference between new markets, existing markets and resegmented markets.

From Zero To $1 Million In Revenue: 16 Startup Lessons We Learned

YFS Magazine

Here's a look at key lessons we learned growing from zero to $1 million in revenue. Launch Finance money starting a business startup lessons

Successful marketplaces evolve away from transaction revenue

The Equity Kicker

The post also looks at Homeaway, Grubhub, and Shutterstock, three other marketplaces that have similarly diversified away from transaction revenues to drive growth and profitability. Startup general interest

Multi-axis Pricing: a key tool for increasing SaaS revenue

For Entrepreneurs

Scalable pricing is a powerful tool to grow revenue in a SaaS or software business. It allows you to capture more of the revenue that your customers are willing to pay, without putting off smaller customers that are not able to pay high prices. It also provides a great way to continue to grow revenue [.]. Building for Success SaaS Startup Help growing SaaS revenue saas marketing SaaS pricing SaaS revenue SaaS sales SaaS VC

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

startups. billion jump in funding over the same quarter of 2010 with a similar number of deals, so it clearly shows a trend to larger deal sizes for fewer startups. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups.

Snapchat and that old no revenues debate

Fred Destin

Not because of the reported $4 billion offer but because of the explosion of age-old arguments about how scandalous it is for a company with no revenues to be valued that highly. Here''s a selection: "why do investors think a silly app with no clear revenue model is worth so much money?"

Playing Startup

Agile VC

I’ve observed what may be an emerging trend, at least in some startups, that I find somewhat unsettling. But I think it’s important to discuss, particularly given today’s heady environment for startups. The post Playing Startup appeared first on AGILEVC

Revenue exceptionalism vs margin exceptionalism

Chris Dixon

Three years ago, Fred Wilson wrote a great blog post called When Talking About Business Models, Remember that Profits Equal Revenues Minus Costs. The profound part is that high growth, early-stage tech companies often have a choice about how to become exceptionally valuable businesses: they can focus on growing revenues at the expense of margins, or margins at the expense of revenues. For example, do you invest heavily in sales and marketing to grow your revenue faster?

Playing Startup

View from Seed

I’ve observed what may be an emerging trend, at least in some startups, that I find somewhat unsettling. But I think it’s important to discuss, particularly given today’s heady environment for startups. But I’ve witnessed more and more “playing startup” in recent months.

SayAhh’s Revenue Projections

Feld Thoughts

The co-founders decided to divide-and-conquer, with Dick tackling expense projections and Jane tackling revenue projections. Jane asked Josh, who provided SayAhh with solid advice on setting up their accounting systems , for help in creating the revenue side of their financial forecast. I am glad to see that you are forecasting revenues based on business drivers. In this case, the # of users and the average monthly revenue per user.

$40bn wiped off newspaper ad revenues in ten years

The Equity Kicker

Banking revenues is one I’m particularly looking forward to, however, it won’t just be old world industries that suffer. Google Startup general interest

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. What are they really looking for? What do you really need to prove?

Lessons From The Internet Bubble: Growth vs. Profitability

Feld Thoughts

Over the weekend, Mark Suster and Fred Wilson each put up awesome posts discussing the idea of profitability in startups. Mark’s is a master class about how to look at the financial characteristics of a startup and Fred’s discusses what he’s been working on with some of his more mature companies. There’s a special bonus in Mark’s post, which is in the section titled Revenue is Not Revenue is Not Revenue.

Are balance sheets or profit and loss statements necessary to produce for early stage startups with no revenue?

Gust

Invested Interests balance sheets entrepreneur funding investors loss statements profit statements revenue startup Investors absolutely need to know the specific financial status of a company before they invest, because they are going to be part owners of the business. How much would you be willing pay someone to take over their bank account if you had no idea how much was in it?

Why Some Startups Win

Steve Blank

I was having a second coffee with an ex student, now the head of a marketing inside a rapidly growing startup. When organizations are small (startups, small teams in companies and government agencies) early employees share a mission (why they come to work, what they need to do while they are at work, and how they will know they have succeeded). If these sound like reasonable answers to you, and you are in a startup, update your resume.

How This Startup Reached $180 Million Revenue By Not Acting Like a Startup

Inc Startups

Saatva has grown revenue to $180 million by exploiting the luxury e-commerce mattress market

Revenue Model: The Path of Least Resistance

ithacaVC

I have heard many times that if a startup company CEO cannot easily and quickly explain his/her pricing model to a customer that the startup company is doomed. This probably applies to “non-startups” too. a SaaS revenue model). In this case that meant a donation revenue model. Bottom line: think about the path of least resistance when it comes to a revenue model. Dealing with VCs Management Startup Life

Boost Your Business Revenue using Location-based Feature in Mobile App

Blogtrepreneur | Entrepreneur Blog

Ensure that you comprehend your customers’ general behavior so that you get help in formulating your advertising strategies and generating huge revenue. Therefore, transportation companies and firms should adopt on-demand applications like Uber and generate revenue for their business.

Should Startups Care About Profitability?

Both Sides of the Table

There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. In any tech startup there is a healthy tension between profits & growth. Revenue When I look at an income statement I start by focusing on the revenue line.

What is the maximum amount of money a pre-revenue mobile Internet startup can expect to raise from the VCs?

Gust

To start with, a pre-revenue mobile company cannot expect to raise anything from “the VCs” Venture capital funds invest in only one out of every 400 companies seeking funding, so the odds of your particular startup getting funded are astronomically against you. For a true startup to be able to raise venture funding, you would need to be perceived as a better bet than virtually every company graduating from yCombinator, TechStars, DreamIT, etc.

43 lessons growing from $0 to $1+ million in revenue, twice

The Next Web

Entrepreneur Insider business lessons startupI realized the other day that we’ve grown from $0 to $1 million with two separate products (HelloSign and HelloFax). This happened a long time ago, but I was recently reflecting on the lessons. I found a lot of growth truisms to be false.

B2B 62

What New Revenue Recognition Rules Mean For Your Startup

Early Growth Financial Services

The Financial Accounting Standards Board (FASB) has been working on updating its rules for revenue recognition since 2002. They cover everything from when revenue is recognized, to the amount of required disclosures, to the degree of discretion in the use of estimates. This year, it announced new guidance created jointly with the International Accounting Standards Board (IASB). The changes are slated to go into effect in 2017 for public companies and in 2018 for private ones.

Getting to $100M+ revenue: Understanding the 3 phases of a startup

The Next Web

Mitchell Harper is the co-founder and co-CEO of Bigcommerce. He tweets at @mitchellharper. In order to be successful as a first-time entrepreneur, it’s important to understand that as your business grows, what got you to where you are won’t necessarily keep moving you forward.

Profit or Revenue? Finding the Right StartUp Focus.

Inc Startups

An ideal situation is the ability to show good revenue growth and a path to profit. That''s the Holy Grail of startup investing And ideally, that path to profit comes through efficiencies of scale.

How I Grew My Startup’s Revenue 50% And Saved $60k Through Partnerships

Software By Rob

When you’re part of a startup, you’re usually working with a smaller team and budget to reach big goals. While it’s tempting to try to do it all by yourself (after all, isn’t that the go-getter startup way?) Partnering with a fellow startup. Startups

The Resetting of the Startup Industry

Both Sides of the Table

Much has changed in the past four months of the technology startup world and how outsiders value the business. It applies to all startups – not just SaaS. Startup Lessons

Why Companies are Not Startups

Steve Blank

In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. Somewhere in the dim past of the company, it too was a startup searching for a business model.

The consistency of Amazon’s revenue growth is amazing

The Equity Kicker

As you can see from the chart below Amazon has delivered on the proverbial hockey stick that startups put in their business plans, and they’ve done it at serious scale. Amazon just posted strong Q1 results and investors sent their share price up 11%.

Smart Entrepreneurs Build Startups Without Investors

Startup Professionals Musings

In my experience as an advisor to aspiring entrepreneurs, I often encounter the myth that an initial startup requires investors. Outside funding is not a startup entitlement. Flaws in a business plan are often masked by money, but ultimately will kill any startup.

8 Secrets To Credible Startup Financial Projections

Startup Professionals Musings

Entrepreneurs often ask me why investors expect financial projections for a new startup even before the product is built and while the market is still being defined. I recently saw a startup projecting $50 million in revenue for the first year.

Revenue benchmark for Series A – $1m run-rate and 20% MoM growth

The Equity Kicker

the ecommerce companies or software companies that we invest in) and you have a $1m revenue run rate and 20%+ month-on month growth you will generally be in good shape. Companies with greater revenues and stronger growth are able to raise bigger rounds at higher valuations. Companies with higher quality revenues (quality encompasses predictability and margin) will get away with a little less, or will get a higher value Series As when they hit this milestone.

The State of NYC Seed: Startup Trends & VC Data [REPORT]

View from Seed

Since joining NextView, we’ve talked often and excitedly about the New York startup ecosystem. And it was these conversations that I believe led to the team’s decision to add their own stubborn presence to stand up for seed-stage startups in NYC … me.

How we built €20,000 in recurring revenue within 90 days of launch

The Next Web

When I build startups I like to share as much information as possible. We launched Ruby & Duke on 15th February and in less than 90 days we have hit €20,000 in monthly recurring revenue so I thought it might be useful to explain how we’ve done that. Entrepreneur startup stories

Ruby 38

How A 17-Year-Old In India Bootstrapped To $7M In Revenue

OnStartups

Today, it has 20,000 customers and 450,000 users in 118 countries, powers more than a billion charts per month and clocks $7M in annual revenues. A startup founded by a 17-year old in a country without a product ecosystem as such can never be smooth-sailing.

India 56