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How to Make Sure Professional Services Don’t Take Over Your Software Company

Both Sides of the Table

I think it’s important for enterprise startups to layer in professional services into your revenue stream. deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. Control Size of PS Revenue Relative to Software Business. rollout support.

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8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. VCs crave the ability to help portfolio companies.

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Are Business Plans Still Necessary?

Both Sides of the Table

portfolios. Let’s take your revenue line. If you’re a consumer destination the revenue and COGS lines should tell me about how big your funnel is, how you fill the top end of the pipe and what your conversion rates will be. How will your costs scale as your revenue scales. Or lower revenue assumptions.

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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

The Innovation Portfolio. Companies manage these three types of innovation with an innovation portfolio – they build innovation internally, they buy it or they partner with resources outside their company. buy out an entire company for its revenue and profits. buy out an entire company for its revenue and profits.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

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It’s Morning in Venture Capital

Both Sides of the Table

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. The opportunity to transact at the point of purchase increases the sheer number of revenue opportunities.

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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

You’ll notice that Harvard lost 30% of the entire value of its portfolio. He then profiled his portfolio company FourSquare who started with a very small investment. So angel and seed stage investors’ returns will be dependent on good times continuing or on the ability of their portfolio companies to get financed.

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