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Both companies generate direct revenue from their platform in the form of a revenue share / platform tax (typically 30%) on software and digital goods sold through the respective platforms. Facebook’s direct platform revenue accounted for about 15% of the company’s overall sales whereas Apple’s was less than 1%.
Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008). Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).
We are also seeing more investors try to be a part of syndicated A rounds for companies that are raising $5M or more and are really not what most would consider “seed” stage. We have offices in New York and Boston, are quite active in the SF Bay area and see significant activity from the diaspora to and from these human capital centers.
They’ve grown from nothing to >$2B in revenue in 30 months time, making the company among the fastest growing businesses in the histroy of the world. How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). Financial Snapshot: 2010 Revenue: $713M. to the merchant.
LinkedIn’s product had only been live for a couple months, we only had tens of thousands of registered users, and wouldn’t start generating revenue for more than a year after this point. I co-founded NextView Ventures , a seed-stage VC firm based in Boston, in 2010. Read More ».
Below, we talk to Glen Mello , Managing Director of Silicon Valley Bank’s accelerator team in Boston. If they can’t, then we want to know more about the existing investor syndicate, so we’re not the only ones at the table. Traction and revenue? It can be lower cost and can either buy more time or accelerate growth.
We are also seeing more investors try to be a part of syndicated A rounds for companies that are raising $5M or more and are really not what most would consider “seed” stage. We have offices in New York and Boston, are quite active in the SF Bay area and see significant activity from the diaspora to and from these human capital centers.
You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. But they don't want to change if they don't have to because it could end up affecting their advertising revenue. It's time to transform your approach.
To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. Pre-money Valuation of Pre-revenue Companies.
Here in Boston the same dynamic as Silicon Valley has been afoot… at least in the software/internet sphere, the majority of startups have migrated from the suburban loop of Rt 128 back into the urban core of Boston & Cambridge. I co-founded NextView Ventures , a seed-stage VC firm based in Boston, in 2010. Read More ».
Editor’s note: Local tech media company BostInno (a division of the American City Business Journals) hosts an annual Boston State of Innovation conference. I was recently asked to sit on panel with my fellow VC peers and some top entrepreneurs from the Boston tech community. For ecommerce: >$500K revenue/month.
E-commerce accounts for the vast majority of LL Bean’s revenue today ( it crossed 50% in 2010 though was as low as 15% in 2000 ), but because LL Bean is over a hundred years old and started as catalog & physical store retailer we typically don’t refer to it as an internet company. Read More ».
Even Amazon isn’t a platform… yes they have AWS but it accounts for <3% of their revenue and isn’t terribly profitable given the capex & opex currently going into growing it. I co-founded NextView Ventures , a seed-stage VC firm based in Boston, in 2010. Not Groupon. Not Dropbox. Read More ».
There never has to be atime when you have no revenues. Some angel investors join together in syndicates. In Boston thebiggest is the CommonAngels. 3 ]If "near you" doesnt mean the Bay Area, Boston, or Seattle,consider moving. Any city wherepeople start startups will have one or more of them.
A company that in time can generate $100M+ in revenue and have an enterprise value measured in the hundreds of millions or more (what some VCs refer to as a “venture scale” outcome). I co-founded NextView Ventures , a seed-stage VC firm based in Boston, in 2010. Simply put… startups that have golazo potential.
The simple answer is “be able to convince a partnership of smart investors that your startup has a good probability of being a $100M+ revenue company within 5ish years.” Whether it’s customers, revenue, user acquisition, investors are more likely to be convinced when your startup has a good near past (last 3-4mo) trajectory.
Revenue ramp of Groupon and Zynga –> Kleiner famously said Zynga was the fastest growing company they’d ever invested in , no mean feat for the original backers of Google, Amazon, Netscape, etc, and Groupon might be the fastest ever startup to reach $1B in revenue. Read More ».
Objective Logistics has created a game layer on top of very sophisticated scheduling algorithms which increase revenue, save time, and improve customer and staff satisfaction. I co-founded NextView Ventures , a seed-stage VC firm based in Boston, in 2010. Read More ».
Some believe that there are “new” revenue models being created by consumer web companies, like virtual goods or “freemium” services. Their first revenue stream is simply inserting affiliate links to e-tailers into the pinboards that users create. But I still firmly believe the overall framework holds true.
Costolo clearly wants to position Twitter as a complementary part of the media ecosystem (which it is by and large) rather than a competitor, and there remains a chance that Twitter will have other forms of revenue besides ads. Here’s why: Virtually all of Twitter’s revenue comes from advertising.
When a startup doesn’t match the stage where a particular investor focuses, founders may get a response along the lines of “This is interesting to us, but come back once you get from X phase to Y phase” That could be from seed stage to a larger Series A financing need, or to progress from pre-product to post-revenue.
How They Make Money : Facebook’s primary revenue stream is of course selling advertising on Facebook.com, which in total accounts for 85% of revenue. The next chunk comes from Facebook’s platform, in essence “taxing” the revenues of app developers like Zynga, which represents 15% of revenue.
For SaaS or other recurring revenue businesses these figures might be on a bookings basis rather than GAAP revenue, but conceptually they’re similar. Bill Gurley’s post last year does a great job analyzing why some businesses are valued at 10x+ revenue and most aren’t. Zynga – 8x+ trailing revenue.
Geography: Of the 16 investments, 9 are currently headquartered in Boston, 4 are in NYC, 2 are in SF, and 1 has s presence in both Boston and Chicago. The main focus of our fund is in the Boston-New York corridor. Post product Pre Revenue: 5. Post Revenue: 4. Syndicate Composition: Angels: 5. VC Lead: 5.
We don’t invest in “syndicates A rounds” as our first point of entry into a company. 1/3 are post product but pre-revenue. 1/3 are post revenue (but very small scale). Syndicates: We have a bias to lead rounds. We also have a pretty broad range of syndicates that we are a part of.
Actually, growth equity firms I find are best at this, because they have very specific financial criteria that they look for, such as ranges for revenue, ebitda, growth, etc. Geography: 20 / 25 investments are based in the Boston and New York areas. Live Product, Pre Revenue: 6 1/2. 5 are in other locations. Consumer: 9.
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