Gust

OCTOBER 18, 2011

It is one of the most useful methods for establishing the pre-money valuation of pre-revenue startup ventures. in the case of one investment round, no subsequent investment and therefore no dilution). The valuation is based on 5 metrics whereby investors add up to $0.5 The Dave Berkus Method. The Cayenne Valuation Calculator.

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

YoungUpstarts

JULY 31, 2019

Founders need seed capital to get their operations up and running, and to begin generating revenue. But “fundraising debt” comes into the picture when you raise too much too early, diluting your business at the beginning of the venture, with no real plan or unrealistic projections for how your business will scale.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2019

Instead, watch payback period for acquisition efficiency, watch retention for product/market fit, watch expansion revenue for long-term growth, and watch gross margin for long-term profitability. There isn’t one most important SaaS metric. Find and focus on one reliable distribution mechanism before diluting your time diversifying.

Restful 202

Restful Founder Revenue Acquisition 202

The Next Web

SEPTEMBER 15, 2013

In other words, the API is the target of a distinct business and opportunity (with its own metrics), which will then have a range of tactics to support it. The most common example of an API strategy is around companies who aspire to build a developer community as a new revenue source or as the foundation of their business.

API 135

API Audience Dividend Programming 135

ConversionXL

JULY 22, 2021

Identifying and merging content targeting the same or similar keywords; Removing duplicate content that dilutes importance, and; Improving metadata so that users see what they’re looking for in search engine results pages (SERPs). Each of these tools will display metrics in a different way.

Technical Review 162

Technical Review SEO Software Review XML 162

YoungUpstarts

SEPTEMBER 16, 2015

Raise too much capital at any given stage and suffer more dilution than is necessary – obviously not ideal. The goal was to set quantifiable metrics to hit in each category and to reverse engineer how many people and dollars would be required to get there. It’s part art, part science. Set Quantifiable Goals.

Valuation 100

Valuation Dilution Chicago Technical Review 100

Hunter Walker

JANUARY 2, 2017

Next Level: Buying Customers/Revenue/Distribution. Here the acquisition becomes more metric-driven and the assumptions around growth and multiples drive the offer. Here the acquisition becomes more metric-driven and the assumptions around growth and multiples drive the offer. ” That’s really it. Apparently so.

Technical Review 121

Technical Review Cap Table Acquisition Startup 121

Startup Lessons Learned

AUGUST 24, 2009

Despite all the energy invested in talking to authors about the size of their platform, very few gatekeepers have a rigorous set of metrics for measuring it. And as everyone’s attention starts to focus on those same indicators, their value is being diluted. What is the right revenue model? Is that a lot?

San Francisco 113

San Francisco Lean Technical Review Distribution 113

Startup Professionals Musings

OCTOBER 13, 2021

It’s easy to say “yes” to one more feature request after another, until the potential for real impact gets diluted. Obsessive sales – must meet revenue goals. Hypermetricemia – metrics for everything. My advice is to focus on a handful of high-level metrics that matter , and are simple and relevant to organizational objectives.

Dilution 334

Dilution Metrics Acquisition Revenue 334

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. “Too Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

crowdSPRING Blog

DECEMBER 13, 2018

But if you want to accelerate growth and improve your revenues and profits, you need to up your game. There are three parts to a good competitive analysis: (1) defining the metrics and identifying the competitors you’re comparing, (2) gathering the data, and (3) the analysis. Start by defining what metrics are important.

Marketing 162

Marketing Charlotte Naming Design 162

Both Sides of the Table

JULY 16, 2013

Because at least while the VC spigot is open and flowing for high-potential individuals that fit a pattern that some VCs seem to favor they can access cheap capital that isn’t terribly dilutive and can use the to fund development and swing for the fences with limited focus on monetization. And the dilution that goes with it.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

Startup Lessons Learned

JUNE 15, 2009

There are a whole range of valid reasons why non-developers would want to dictate the production release schedule (Seasonal/timing issues, marketing, fulfillment concerns, documentation/training, revenue controls, legal/regulatory. " Actually this process works really well in a financial company.

Continuous Deployment 167

Continuous Deployment Software Review San Francisco Lean 167

ConversionXL

AUGUST 30, 2018

The key is to connect user research to an improved user experience and, in turn, an increase in customer retention, leads, or any other metric for which C-suite members are accountable. The finance team understands that content customers are less likely to churn and destabilize revenue flows. Good UX can help with each of those things.

Design 111

Design Framework Product Development Technical Review 111

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

ConversionXL

NOVEMBER 6, 2017

In any experiment, some metric within some group usually changes, but whether we’ve invested in the statistical rigor to discover it is another question altogether.”. Knowing these finer details can help meaningfully shift your metrics in a positive direction, where they may have once been plateauing. Image Source. Conclusion.

Chad 112

Chad Mobile Technical Review Aggregator 112

The Next Web

SEPTEMBER 13, 2013

They want to see cash flow quickly (you cannot wait 2-3 years before determining your revenue model, like in Silicon Valley), so make sure you’re ready for this next step and have a solid plan in place on how to accomplish it. Valuations are based more on typical later-stage type of metrics. Finally, don’t over-optimize on valuation.

Asia 132

Asia Silicon Valley India Term Sheet 132

Both Sides of the Table

SEPTEMBER 28, 2013

Good press and industry mojo wasn’t enough to overcome the financial metrics of the business and the offers came in at more like $10 million. Sure, our revenue is growing, but is that enough to raise an internal round? Dilution / valuation. I wasn’t expecting this much dilution this quickly.” It was not.

Startup 417

Startup Dilution San Diego Stock Options 417

Startup Professionals Musings

NOVEMBER 7, 2022

There is no point incubating an innovative new venture if you don’t have the funds to launch and expect quick self-sustaining revenue. Don’t let early success dilute your focus, or demand that the new venture quickly meet your mainline financial and growth metrics. Commit a source of internal or external seed funding.

Advisory Board 359

Advisory Board Incubator Dilution Agile 359

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

ConversionXL

FEBRUARY 21, 2018

Seasoned experts suggest that you should optimize for a metric which can affect the bottom line of your business. A number capable of signaling growth, like absolute count of conversions, conversion rate, total revenue, revenue per visitor, cost per acquired customer, among others. Focus on long-term effects.

Programming 117

Programming Audience Analytics Metrics 117

betashop.com

OCTOBER 8, 2012

From the start we said that we would never make a decision as to what features to build or what products to sell based on revenue alone, rather we would focus on things that make our customers smile and by doing so lots and lots of revenue will fall out over time. Don’t skimp on fundraising because of dilution fears.?.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Duct Tape Marketing

APRIL 7, 2022

So a lot of agencies track revenue, some actually even track profit, but you, if we're gonna optimize, um, profitability, what, what should we be measuring? So I'm also maybe a little French too, that might have helped. Marcel Petitpas (01:46): I like it. No, you did a great job. John Jantsch (01:48): All right. Anyway, they get to do it.

Cofounder 94

Cofounder Hosting Networking Software Review 94

ConversionXL

NOVEMBER 15, 2022

This example from a presentation by Brent Dykes shows how unnecessary noise dilutes data and how much more effective its when stripped back: Image Filename: example-from-a-presentation-by-brent-dykes.jpg. Alt Tag: Example from a presentation by Brent Dykes that shows how unnecessary noise dilutes data. Focus on the data that matters.

Marketing 100

Marketing Analytics Audience Design 100

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Ben's Blog

APRIL 1, 2011

Organizational design, process design, metrics, hiring and firing were all relatively straightforward skills to master compared to keeping my mind in check. Raise money in a highly dilutive way. Revenue at Ning is soaring and team morale is high. —The Geto Boys, Mind Playing Tricks on Me. Sell the company or 3.

Management 78

Management Cap Table Balance Sheet Bankruptcy 78

Duct Tape Marketing

OCTOBER 11, 2023

But what the dilution, if you bring it down to it that even creator entertainers and educators have in common is it's this human element. John Jantsch (13:13): Alright, let's talk about R O I or metrics in general. It's this trusted element and it's something that brands like big brands really have always been striving for, right?

B2B 92

B2B Marketing B2C Community 92

Occam's Razor

APRIL 15, 2019

The goal was to deliver a 30% increase in revenue, the team delivered 1.7953%. Bubble Kings most commonly reside in organizations where there is little to no accountability (or misplaced accountability, ex: celebration of vanity metrics). They dilute the analysis with non-facts. The conversion rate is down 30% at launch.

Leadership 80

Leadership Non-Compete Analytics Software Review 80

Austin Startup

MARCH 26, 2019

Discounts too early can also have the adverse effect of diluting a brand when targeting a more affluent customer segment. Important metrics to track include customer count, average order value (AOV), retention or repeat purchase rate, ad spend, paid CAC, weighted average CAC, rolling LTV estimates, and more.

Technical Review 49

Technical Review Software Review China Acquisition 49

David Teten

NOVEMBER 10, 2011

The model outputs standard financial statements and key operating metrics based on a wide range of user inputs, and is highly customizable and entirely transparent. The Income Statement sheet allows you to model expenses and revenues as they occur. Download the template financial model in Excel here.

Balance Sheet 154

Balance Sheet Startup Equity Valuation 154

The Next Web

FEBRUARY 27, 2014

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Gust

SEPTEMBER 17, 2014

There were no metrics. Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Next Web

SEPTEMBER 29, 2013

You’re learning what the metrics that matter are, what your funnel looks like, and what actions you want your prospects to take. Clearly investors should promote the idea that startups need to have clear metrics for terminating the discovery mode. You need to nail your metrics to graduate discovery mode. What does that mean?

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Anything that hints of a down round brings questions about the success metrics that have already been “booked.” It will also minimize future dilution. Now you make your own decisions.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

View from Seed

JUNE 30, 2015

Over a third of our investments happen pre-product (so by definition, before PMF), and two-thirds are pre-revenue. For a marketplace or ecommerce business, you need to be doing well north of $5M in annual revenue or GMV to get an A round done. FWIW, at NextView, we invest from inception to strong PMF. We’re not at normal yet.

Seed Stage 120

Seed Stage Syndication Syndicate Dilution 120

This is going to be BIG.

JUNE 2, 2010

Historically, that was one where the business was clear and there was some initial revenue, even if slight. On top of that, when you set out to raise a certain size round, and the round grows on you, you usually wind up taking a lot more dilution than you intended. Drive one key metric. Try to prove one thing. Is it users?

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

ConversionXL

JANUARY 18, 2022

Founded in 2015, revenue intelligence startup Gong is now valued at $7.25 When someone shares your YouTube video on Twitter, you can track that metric. You don’t want to overwhelm followers or come across as inauthentic and dilute your brand. Around 77.5% of all shares happen organically (e.g.,

Social Media 145

Social Media Audience Media Marketing 145