VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Benchmarks are typically specific to stage/business model/geo. What should our MRR growth be?

B2C 141

B2C Technical Review Startup Retention 141

Occam's Razor

MAY 2, 2017

People ask me this seemingly simple question all the time: What Key Performance Indicators should we use for our business ? There is no golden metric for everyone, we are all unique snowflakes! :). I am going to pick a whole bunch of different businesses (15 in all!), If you want to play along. Don’t read what I’ve chosen.

Metrics 143

Metrics Acquisition eCommerce Analytics 143

Both Sides of the Table

MAY 23, 2012

In an over-funding environment companies are encouraged to eschew revenues in a land grab to acquire eyeballs, clicks, page views or whatever other vanity metrics give VCs the false comfort that they’re sitting on a gold mine. They compete on features, price and execution. Search for a restaurant, book a table, eat in 30 minutes.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. However there is a lot of value in looking at these same metrics for all other businesses.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Startup Lessons Learned

DECEMBER 14, 2009

Lessons Learned by Eric Ries Monday, December 14, 2009 Business ecology and the four customer currencies Lately, I’ve been rethinking the concept of “business model&# for startups, in favor of something I call “business ecology.&# Constructing a working business model is a form of ecosystem design.

Customer 156

Customer San Francisco Viral Lean 156

The Next Web

DECEMBER 4, 2013

Metrics on keywords, follower profiles and competitors all help define your target listener. As a startup, you’re working with limited resources and a lean business model. With an innovative product in the consumer payment space, the company had viral-ready content. Startup Example: Zappos. Prioritize social networks.

Social Media 158

Social Media Media Viral Startup 158

Startup Professionals Musings

FEBRUARY 17, 2018

Implement a modern real business model. Use metrics to measure results of marketing initiatives. Too many entrepreneurs put all their resources in one big make-or-break effort they can’t measure, or they count on word-of-mouth and viral marketing, which are totally unpredictable. Customers like leaders, not followers.

Forecast 161

Forecast Stock Options Technical Review Metrics 161

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 23, 2016

That last bit should sound familiar if you follow theories of Startup Laws & Metrics. Similarly, we hold up “viral growth” as the best sort of growth, because exponential curves overwhelm all others, thus once the mechanism is stable and the company gets large enough to be noticed, it’s neigh-impossible for competitors to catch up.

Technical Review 120

Technical Review Viral Metrics Salary 120

leananalyticsbook.com

AUGUST 19, 2012

The One Metric That Matters. One of the things Ben and I have been discussing a lot is the concept of the One Metric That Matters (OMTM) and how to focus on it. That doesn’t mean there’s only one metric you care about from the day you wake up with an idea to the day you sell your company. Lean Analytics Book.

Metrics 58

Metrics Clickthrough Lean Analytics 58

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

So no, this upside-down business model isn’t what a SaaS business should construct. Use viral growth to offset cancellations. Few B2B companies can truly claim “viral growth” characteristics. Leaving the metrics alone, and trying to “grow until profitable” doesn’t work.

Business Model 335

Business Model .Net Revenue IPO 335

SoCal CTO

OCTOBER 8, 2009

A post by Fred Wilson pointed me to Dave McClure's Startup Metrics presentation. Normally, when I am talking to the founder of any startup trying to figure out what they need to do, one of the things I always try to do is understand their business at its core. You only build what you need to prove that model. Great stuff.

Metrics 225

Metrics Startup Retention Acquisition 225

SoCal CTO

NOVEMBER 10, 2009

It was also beneficial because I got some good experience with both B2B and B2C business models. You mention social / viral aspects at both Google Photos and United Online. I'm working quite a bit with startups who are leveraging social media, but I'm finding it hard to predict success and metrics. How did you do that?

Management 150

Management Product Entrepreneur Silicon Valley 150

Startup Professionals Musings

SEPTEMBER 9, 2015

Implement a modern real business model. Use metrics to measure results of marketing initiatives. Too many entrepreneurs put all their resources in one big make-or-break effort they can’t measure, or they count on word-of-mouth and viral marketing, which are totally unpredictable. Customers like leaders, not followers.

Startup 120

Startup Forecast Stock Options Technical Review 120

Startup Professionals Musings

SEPTEMBER 28, 2015

If the elements of your business aren't expertly developed and aligned, even the best dream will be in jeopardy. Such failures ignore the essential business elements investors look for before committing to a startup. In the real world, marketing initiatives that go viral cost big money and effort for their innovation and execution.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

reidhoffman.org

NOVEMBER 12, 2013

But with so many investors still licking their wounds from the dot-com bust, many focused on proven business models, such as advertising or e-commerce. We are the leader in the professional domain with viral growth. Great businesses can be built off this network, starting with matching talent and opportunity.

Entrepreneur 111

Entrepreneur Viral Revenue Networking 111

ReadWriteStart

APRIL 8, 2023

As for Metaverse — businesses should keep an eye on it as it is not clear yet whether this is hype or a trend. TikTok and Influencers One viral video on TikTok can reach 1.5 5000 , a blog about the fastest-growing business models. million people and generate monthly revenue.

eCommerce 185

eCommerce Technical Review Software Review Analytics 185

The Next Web

AUGUST 26, 2012

The metrics that matter the most are returning customers (user retention), turnover per customer and viral growth (k-factor). Remember that raising money in itself is not the purpose; it’s about creating an organization that can fully focus on finding retention and a working business model that can later on scale.

Bankruptcy 121

Bankruptcy Technical Review Intellectual Property Due Diligence 121

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Designing startup metrics to drive successful behavior Great companies are almost always run by great management teams. Good metrics should also be actionable, and drive successful behavior. This post is applicable to any kind of business.

Metrics 55

Metrics Design Entrepreneur Startup 55

Steve Blank

FEBRUARY 22, 2010

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business. Startup Metrics.

Balance Sheet 307

Balance Sheet Startup Burn Rate Metrics 307

Startup Lessons Learned

APRIL 14, 2009

What matters is proving the viability of the company’s business model, what investors call “traction.&# Of course this is not at all true of many profitable small businesses, but they are not what I mean by startups.) Every board meeting, the metrics of success change. And yet, their investors are frustrated.

Customer 167

Customer San Francisco Lean Hockey Stick 167

Up and Running

JULY 10, 2017

Different sources define freemium as a business model or a pricing strategy. It’s critical to understand the metrics in terms of dollars per additional user, as you’ll have to spend this amount to serve thousands of your non-paying customers. However, your pricing options go far beyond freemium and free trial. Youtube ads. $1

Startup 110

Startup Non-Compete Viral Software Review 110

ConversionXL

FEBRUARY 3, 2022

Neither would have achieved virality had customers not received something tangible for their efforts. How to create a growth hacking strategy using the pirate metrics model. In the activation phase, measure these performance metrics: Conversion rate Number of customers using a product feature Drop-off rate Dwell time.

Retention 113

Retention Marketing Acquisition Channel 113

Steve Blank

DECEMBER 7, 2010

Business schools teach aspiring executives a variety of courses around the execution of known business models, (accounting, organizational behavior, managerial skills, marketing, operations, etc.). In contrast, startups search for a business model. (Or to optimize this search. to optimize this search.

Wiki 318

Wiki Lean Management Business Model 318

Startup Lessons Learned

MARCH 13, 2009

You have to know your business model. Most startups launch before theyve figured out what business theyre in. If the viral coefficient is 0.9, Know what the success metrics are for the launch. Would have been nice to have this last year when I started my own business. Most startups arent so fortunate.

San Francisco 168

San Francisco PR Lean Early Stage 168

ConversionXL

MAY 19, 2016

One of my favorite examples of this is the design of viral loops. Andrew Chen has said that some of the best growth people don’t think in terms of funnels, they think in terms of viral loops. You’re likely familiar with Facebook’s 7 friends in 10 days metric, right? And I think this is really the point.

Analytics 78

Analytics Metrics Channel Software Review 78

Duct Tape Marketing

MAY 18, 2023

09:42] Was there a point in time when you decided to use newsletters to fit your business model or you started it as a normal standard digital marketing tactic? [11:10] 14:58] What are some of the metrics that show you’re doing things right? [17:02] John Jantsch (16:48): A viral referral tool. 16:13): Yeah, yeah.

ChatGPT 99

ChatGPT Advertising Email Viral 99

Duct Tape Marketing

JANUARY 4, 2024

Uncover diversified monetization strategies, including advertising, consulting, and info products, ensuring a sustainable and profitable newsletter business. Learn crucial metrics for success, from open rates to the quality of subscribers. 15:09] What are some of the metrics that showcase success in Newsletter writing? [17:17]

Revenue 96

Revenue Advertising Email ChatGPT 96

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 24, 2011

So that means stuff like thinking about what a business model might be, it does mean customer development. Do you feel like the more users you have it helps accelerate, is there some kind of, maybe not necessarily viral, but that people just tell their friends at all. They have 27 business units. One of them is Mint.

Cofounder 208

Cofounder Technical Review Software Review Differentiation 208

mashable.com

SEPTEMBER 14, 2011

Clearly Define Your Business Model While this may sound like a trivial task, young startups often have an exciting and innovative product, but no real plan for monetizing it. It’s critical to establish this component of your business before thinking seriously about growth. in place before you expand.

France 77

France Marketing Social Media Startup 77

Occam's Razor

APRIL 8, 2013

To win in business you need to follow this process: Metrics > Hypothesis > Experiment > Act. We are far too enamored with data collection and reporting the standard metrics we love because others love them because someone else said they were nice so many years ago. That metric is tied to a KPI.

Metrics 157

Metrics Analytics Lean Churn Rate 157

Up and Running

MAY 23, 2016

The one-page pitch format is also more suitable for SaaS businesses that are constantly testing new ideas. Your pitch is going to cover your strategy (what you’re going to do), your tactics (how you’re going to do it), your business model (how you will make money), and your schedule (who is doing what and when).

Software Review 74

Software Review Software Delaware Forecast 74

ConversionXL

SEPTEMBER 10, 2019

For that year, the metrics look amazing. Their growth came from users, and they had true virality. With funnels like this, a growth team can drive core business growth. Just remember that true virality is really rare. Most businesses don’t have a user loop that drives their core growth. Conversions are up.

Conversion 133

Conversion Technical Review Channel Engineer 133

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 3, 2011

He said: “ A startup can focus on only one metric. I’ll explain it here using WP Engine as the foil rather than revealing secrets about AppSumo because, although AppSumo internal metrics are both impressive and instructive, it isn’t my place to reveal them. And to do that, you have to focus on only one metric.

Metrics 273

Metrics Startup Revenue Engineer 273

A Smart Bear: Startups and Marketing for Geeks

APRIL 9, 2013

Most consumer apps get around the high acquisition costs with some sort of virality, but backup isn’t viral. So we had to pivot [from consumer sales] to go after businesses.” You change one thing about your business –maybe it’s the business model, or pricing, or target market– and see what happens.

Lean 284

Lean Analytics Metrics Viral 284

Duct Tape Marketing

NOVEMBER 15, 2023

17:30] How deep into financials and metrics do you get before taking a client on? [19:01] What do you see as the challenges to that business model for most people that attempt to do it? The intent of the business model, but we'll kind of map out that whole ecosystem. And you know, not a fun business model to run.

Channel 92

Channel Acquisition Framework B2B 92

Cracking the Code

OCTOBER 10, 2008

Effectively measuring and understanding your CAC and CLTV metrics are key to future success. You validated our business model and added huge value to our efforts. Bessemer SaaS Law #1: Your key monthly business metrics are: CMRR (Committed Monthly Recurring Revenue), Churn, and Cash flow - “Bookings” is for suckers.

Software Review 48

Software Review North America Europe Metrics 48

Startup Professionals Musings

APRIL 9, 2012

Business model. Outline your sales and marketing strategy (direct marketing, sales channel, viral marketing, and lead generation). That’s your metric to see if you have their attention. Most likely, the investor has already seen multiple plans with similar solutions. Marty Zwilling.

Business Plan 244

Business Plan Elevator Pitch Viral Lead Generation 244