asterisk2a + saas + acquisition   9

The Math Behind SaaS Startup Valuation | TechCrunch
One of the most critical metrics for software companies — but also one of the most difficult to measure — is the lifetime value of their customers (LTV). The lifetime value dictates how a company should spend its marketing and sales dollars. Unfortunately, many early stage startups struggle to measure LTV, because they haven’t been around very long and, consequently, haven’t seen a large number of customers through their lifespans with the product. // &! http://techcrunch.com/2015/08/29/the-saas-success-database/
SAAS  CAC  LTCV  business  model  subscription  model  customer  acquisition  user  acquisition  user  churn  customer  retention  metrics  KPI  Start-Up  lesson  Start-Up  advice  accounting  freemium  business  education  MBA  accelerated  learning 
august 2015 by asterisk2a
Why Billion-Dollar Valuations Don’t Matter | TechCrunch
I recently heard a story about one VC pushing a company to drive their burn up from $1 million a month to $2.5 million. Unfortunately, an inefficient sales force will always come back to bite you in the butt. We typically think of 60 percent as the benchmark for a healthy performing sales organization. Anything less and you don’t have a repeatable model. [ avc did write about that you need to find product/market fit, traction, self starter, great net promoting score, without spending marketing/advertising/pr ] [...] The goal of every entrepreneur and VC for that matter should be to build sustainable and scalable businesses. The only way to do that is to focus on the metrics that truly matter. The companies that nail many, if not all, of the above criteria will be the ones that make it to the finish line, and the balance will be wandering through the forest looking for someone to feed them.
Unicorn  SAAS  Slack  DropBox  Box  Venture  Capital  Silicon  Valley  growth  round  2015  KPI  metrics  accounting  user  churn  customer  retention  upselling  customer  acquisition  CAC  Decacorn  on-demand  convenience  Marketplace  business  model  user  acquisition  Product/Market  Fit  Share  Economy  middleman  scale  economies  of  scale  FOMO  hunt  for  yield  Start-Up  advice  Start-Up  lesson  burn  rate  runway  Homejoy  Net  Promoter  Score  consumer  product  business  product  B2C  B2B 
august 2015 by asterisk2a
Growth vs Retention – AVC
"Retention was clearly bad, and that’s what killed us" [...] [...] This all comes back to stepping on the gas before finding product market fit. You might think you have product market fit and so you scale up your hiring, your marketing, your sales, and your capital raising and spending. But if you can’t retain a healthy percentage of your users past ninety days, you don’t have product market fit yet and all the investment you make in your business is just money down the drain. So focus first on your 90 day retention numbers and make sure to nail them and prove you have product market fit. Then scale. // find natural/organic marketing - advertising - instead of building a non-product related cost center like sales, marketing, and advertising. short-cuts like these don't fix the product per se.
user  churn  customer  acquisition  Product/Market  Fit  MVP  user  acquisition  business  strategy  product  strategy  strategy  Start-Up  lesson  Start-Up  advice  burn  rate  runway  Homejoy  distribution  model  discovery  content  distribution  content  discovery  Net  Promoter  Score  word  of  mouth  Tribe  1000  True  Fans  UI  UX  user  experience  user  engagement  customer  experience  customer  retention  customer  service  SAAS  marketing  growth  round  cost  center  short-term  view  short-term  thinking  feedback 
august 2015 by asterisk2a
Homejoy Is Shutting Down At The End Of The Month | TechCrunch
tcrn.ch/1CO0OOU / 7:10 $VC subsidized early business. Could not get 2 cash flow even. Lets not speak of cash flow positive. // If u dont have a cash flow even/positive business, u are dependent on $VC 2 keeping it afloat. If u dont have massive growth, VCs like 2 see & not hitting ur milestones & ur still not able 2 turn the business arnd towards cash flow even. Ur dead in the pan. AND 4 digital only consumer & entertainment products, scale is important +10m users. Because then only advertisers might ... might consider placing an add/natively if the conversion & engagement metrics are attractive. Advertisers & brands cant spread resources thin across 1000 apps. Its overhead & waste in ops. That is why BIG like TV (still), Daily Paper/Magazine (still) and FB (owning +70% of Social) are the MAIN HUBS. >> THUS [Freemium] the Free On Phone Version 4 closetphile (wont cost u much except dev) & the Customer paying 4 Cloud Convenience,Security, more features (ie analytics). &! bit.ly/1CSygUA
Start-Up  lesson  Start-Up  advice  on-demand  convenience  scale  economies  of  scale  Venture  Capital  burn  rate  runway  business  model  closetphile  wardrobemalfunction  freemium  Homejoy  added  value  value  creation  Perception  Silicon  Valley  Unicorn  speculative  bubbles  speculative  speculation  Appification  mobile  homescreen  mobile  first  mobile  phone  irrational  exuberance  Rocket  Internet  Uber  Lyft  customer  acquisition  customer  acquisition  cost  customer  retention  customer  lifetime  value  SAAS  Postmates  Service  Sector  Jobs  1099  Economy  uncertainty  self-employment  Niedriglohnsektor  Niedriglohn  marketplace  efficiencies  marketplace  commodity  business  commoditization  price  sensitive  price  insensitive  price  sensitivity  behavioral  economics  behavioral  finance  status  symbol  status  anxiety  socioeconomic  status  social  status  craigslist  sustainable  sustainability  metrics  KPI  Circa  Share  Economy  marketshare  unit  economics 
july 2015 by asterisk2a
[WMD 2015] Zenefits, Matt Epstein "From $0 to $21M ARR: Our 5 Biggest Marketing F***Ups" - YouTube
... the wise man learns from other peoples mistakes too. // get things to work first and worry later. // Stretch Goal = Goal. Back against the wall. Making things happen. // When you need someone to do X, you will lose 4 months till that person gets started at X. Thus start hire (process for) people that you will need 3-4-5 months from now! // Marketing is a rolling stone, evolving, learning, finding one lever after the next. Not being complacent by focusing on what already works (channels/levers).
Marketing  SAAS  B2B  Zenefits  Start-Up  lesson  Start-Up  advice  HR  human  resources  customer  acquisition  customer-outreach 
may 2015 by asterisk2a
Cloud HR Startup Zenefits Is Looking To Raise A Giant New Round Of Funding | TechCrunch
Aims 2 raise up2 $500M at $3B+ valuation; Zenefits prev said it expected $100M ARR by '15; expects GAAP rev of $50M+ this yr; prev raised $83.6M // Free SAAS, makes money by receiving commissions from insurers. [NEEDS SALES & MARKETING hires to sustain growth trajectory and justification of valuation multiple.] By the end of 2014, Zenefits had around 500 employees, according to sources, but that number is expected to quadruple by the end of 2015. Last year, the company said it wanted to hire around 1,300 employees over the next 3 years. [Capturing Marketshare USA/Canada - hitting it with the baseball bat.] // youtu.be/KporpXG0XK8 min6 direct marketing/e-mail/hustle/hands on sales pitch > COO/Accounting/HR // youtu.be/7KmjzfK3f38 min 11 Start-up struggle, figuring it out along the way but having a sense // (2015) youtu.be/8DwlS_6jLAo "Hyperscaling Inside Sales" &! YC W2013 application video - youtu.be/-S83fysRwn4
valuation  Silicon  Valley  Zenefits  HR  Unicorn  growth  round  enterprise  2.0  SAAS  SPV  business  model  customer  acquisition  user  churn  customer  churn  user  acquisition  marketing  Box  DropBox  Salesforce  ZenDesk  user  experience  Software  Is  Eating  The  World  operations  freemium  scaling  LTV  scale  human  resources  hiring  Core  Product  Value  Proposition  sales 
april 2015 by asterisk2a
Uber Continues To Bleed Cash In India To Pick Up Market Share | TechCrunch
The U.S. company was a relatively late arrival in India, but it has quickly scaled to cover 11 cities and make India its second largest market. Initially lagging behind a handful of local firms, Uber is making its large pile of funding count with a series of eye-catching (and cash-burning) promotions, the latest of which is free rides for anyone in the country between Wednesday and Sunday. &! - techcrunch.com/2014/11/23/sf-has-an-sm-problem/ >> "Our Sales and Marketing costs are killing us. [...] Hortonworks [...] $33.4 million in total revenue in the first three quarters of 2014, but its S&M costs were $44.6 million in the same period. New Relic, [...] revenues of $63 million in the year before March 31, with $58 million in sales. [...] Box, $124 million in revenue in the year ending January 31, but $171 million in S&M costs. [...] [ Same with FireEye & SalesForce ] [ Other case; Slack w high Net Promoter Score (Product) & mix of B2B and B2C case. &! bit.ly/SXRliN from a16z
Uber  burn  rate  freemium  business  model  subscription  model  user  acquisition  user  churn  Box.com  Square  profit  margin  Start-Up  lesson  Start-Up  advice  Venture  Capital  growth  round  Net  Promoter  Score  gross  margins  SaaS  B2B  growth  hacker  growth  hacking  lifetime  value  cost  of  aquisition 
november 2014 by asterisk2a
Drowning in venture capital, mobile startups are waging unsustainable price wars | PandoDaily
upside of this up-cycle/up-business cycle? everyone with a little bit of chops and a MVP with little bit of traction can get capital. Downside? Everyone spends their capital. Would never happen in a down cycle. Down cycles are great, you've got more time to build a great team, product and brand. .... "[L]ook at ecommerce 2.0 companies like Fab and EcoMom who blew millions in capital acquiring customers at unsustainable rates, hoping for some magic lifetime customer value to justify the spending. (It didn’t.) “There’s a tension between growing fast enough and having a disastrous bottom line,” Jeff Clavier, Founder of SoftTech VC, says. Clavier was an early investor in Fab, among others playing this game. “If you don’t have growth you’re stuck, but if you have growth with economics not viable in the long term, [you’re making] a real bet that you’ll be funded nevertheless.” [...] companies aren’t developing a sustainable business model. [Freemium works better with Software Product.]
Start-Up  lesson  Start-Up  advice  Lean  Start-Up  VC  Venture  Capital  hunt  for  yield  growth  round  Uber  Lyft  Fab.com  sustainable  sustainability  customer  acquisition  customer  retention  2014  asset  bubble  bubble  Silicon  Valley  Palo  Alto  San  Francisco  business  model  business  plan  user  experience  user  expectations  Amazon  Zappos  free  freemium  SAAS  on-demand  mobile  services  Industry  mobile  first  Uber  for  X  Groupon  Berlin  Start-Up  Scene  Europe  Start-Up  Scene  London  Start-Up  Scene  me  too  price  war  commoditization  commodity  business  differentiation  differentiate  brand  brands  branding  indefensible  values  defensible  values  business  management  management  economics  frictionless  friction  rackspace  training  your  customer  growth  crutch  growth  hacker  traction  Value  Proposition  long-term  thinking  long-term  view 
july 2014 by asterisk2a

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