Startup Professionals Musings

JULY 3, 2020

Selecting the right sales channels is one of the first strategic decisions that every startup faces. This area of demand analysis is also called the “sales funnel” or “sales pipeline,” used for tracking the overall process from initial prospect engagement to close. Don’t just use these in isolation. Lead management performance.

NPV 436

NPV Net Present Value Conversion Ratio Marketing 436

Startup Professionals Musings

NOVEMBER 26, 2012

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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. Early customers and contracts in progress add value.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 30, 2011

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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. Early customers and contracts in progress add value.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

SoCal CTO

MAY 19, 2010

The example he uses is: THE RAISE Investment $500,000 Pre Money $600,000 Post Money $1,100,000 OWNERSHIP Founders 55% Investors 45% EXIT Sale Price $5,000,000 Time 5 years INVESTOR RATIOS ROI 355% Multiple 4.55x IRR 35% NPV @ 10% $828,000 Admittedly that valuation and the resulting ownership causes me to wonder, but the most interesting aspect is that (..)

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Both Sides of the Table

SEPTEMBER 8, 2009

Don’t forget that long after you forget the CAPM pricing model, how to do regression analysis or how to calculate NPV without a spreadsheet – your network should endure. I do find it strange that the most valuable skill for any employee in any company isn’t emphasized AT ALL in my experience: sales. What you lose: 4.

NPV 337

NPV Chicago Balance Sheet Database 337

Startup Professionals Musings

SEPTEMBER 6, 2010

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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. Early customers and contracts in progress add value.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Startup Professionals Musings

JULY 9, 2018

Selecting the right sales channels is one of the first strategic decisions that every startup faces. This area of demand analysis is also called the “sales funnel” or “sales pipeline,” used for tracking the overall process from initial prospect engagement to close. Don’t just use these in isolation. Lead management performance.

Demand 144

Demand Metrics NPV Net Present Value 144