asterisk2a + saas + model   12

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
Banner “Fraud” Doesn’t Matter | Hacker News
bit.ly/1Jb27sI "A Message from brand marketers to publishers [...] We use banners as little billboards now. We use them strategically as incredibly cheap repeat impressions for brand awareness. We know many people don’t see them, we know most people don’t see them. Thats okay. We use them accordingly & the cost has been adjusted down to make them a perfectly great buy even though most people dont see them. [...] It’s an indicator to us that you don’t get this by the fact you’re still always talking about clickthrough, which was kind of BS when you first sold it to us twenty years ago, and doubly the case now." [ CPM will go lower, fundamentals point in that direction, Social Media & other future forms of advertising will fill in the lower CPM rates overall. Thus pressuring business models reliant on pageviews even more 2 increase pageviews as the revenue average per pageview declines. Thus u have 2 question which consumer product (entertainment & else) business model do you choose!?
display  advertising  banner  ads  advertising  click  fraud  AdSense  pageviews  Google  Search  brand  awareness  billboard  user  experience  user  engagement  Social  Media  eyeballs  CPM  Google  commoditization  clickthrough  native  advertising  branded  content  marketing  advertisement  targeting  advertisement  re-targeting  Programmatic  advertisement  advertorial  business  model  business  cycle  business  confidence  consumer  confidence  SAAS  consumer  product  closetphile  long-term  view  long-term  thinking  sustainability  sustainable  Product/Market  Fit  Core  Value  Proposition  Value  Proposition  added  creation  Net  Promoter  Score  network  effect  viral  coefficient  Start-Up  lesson  Start-Up  advice  subscription  model  subscription  productivity  aspirational  aspirational  product  mass  market  niche  Popular  Culture  Pop  Culture  click  bait  clicks  Clickbait  Linkbait  linkbaiting  Newsfeed  gatekeeper  impression  metrics  commodity  business  attention  span  user  behaviour  mobile  first  mobile  homescreen  paradgimshift  uncertainty  Evernote  DropBox  paywalls  paywall 
july 2015 by asterisk2a
Microsoft Will Never Give Up On Mobile | TechCrunch
It has other bullets left [shooting at mobile] in the chamber including Windows 10 and the cross-platform mobile apps too. Whatever happens, Microsoft can ultimately never walk away from mobile because giving up would essentially be ceding a massive portion of the future of computing, and it simply can’t afford to do that. [...] Microsoft wanted to go after phone market share in the long term, and selling Windows at its old price points would limit broader Windows 10 adoption, eroding at the company’s larger value proposition of having one platform across all your devices. Put another way, the company is foregoing some identifiable revenue to prop up Windows mobile. [ diminishing price of Software! is one big mover in tech for the next years coming, see SAAS & PAAS + consulting and on-site with OpenSource and Subscription Plan Model using SW through browser. ] &! wrd.cm/1eNXKr4 The Death of the PC Has Not Been Greatly Exaggerated
Microsoft  mobile  first  mobile  homescreen  Android  iOS  Windows  10  user  behaviour  Google  Apple  mobile  computing  phablet  Tablet  mobile  strategy  corporate  strategy  technological  progress  Windows  Phone  business  model  Open  Source  SAAS  Software  Is  Eating  The  World  Free  Software  commodity  business  commoditization  differentiate  differentiation  Branding  public  perception  GNU  Platform  Open  Platform  business  strategy  economics  of  abundance  marginal  cost  cloud  paradgimshift 
july 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
Mark Surman: Non Profits in the Digital Age
The heart of social change is collaboration around a common goal, which the shift to the connected age offers in spades. The Mozilla Foundation's Mark Surman sits down with Steve Paikin to discuss applying open source principles to philanthropy and Mozilla's initiative to boost global web literacy. // Internet. You don't need permission. (book by alexis ohanian, without their permission) // is there more trolling, bullying and hate? or is it because it's so much easier to surface and less friction and non-facing confrontation. // Internet = more agency. not just consuming. linear programming. // digital literacy! resources for teachers! >> digital-literacy.org !? //
Mozilla  Non-Profit  Mozilla  Foundation  Firefox  Thunderbird  Open  Source  education  policy  Year  of  Code  STEM  democracy  Internet  gate  keeper  Silicon  Valley  Creative  Commons  Politics  destruction  Wikipedia  crowd  sourcing  wisdom-of-the-crowd  crowdsourcing  Clay  Shirky  Mark  Surman  Mechanical  Turk  cognitive  surplus  Middle  Class  ProAm  leisure  time  discretionary  free  time  discretionary  spending  disposable  income  Software  Is  Eating  The  World  SAAS  PAAS  business  model  civic  society  civic  life  civic  good  Charity  digital  literacy 
july 2015 by asterisk2a
Thoughts on Microsoft acquiring Berlin's 6Wunderkinder
[5x] Second of all, the purchase price range reported by the WSJ is very broad. There’s a world of difference between selling a company that has raised around $25 million in capital for $100 million or for $200 million – for the founders and its financial backers, no matter what stage they’ve invested in. [...] I agree with people who said this is a great deal for the early investors, the company’s founders, and the Berlin startup ecosystem in general. There’s absolutely no question that it is. At the same time, I can’t help but think 6Wunderkinder could (should?) have been bigger and bolder. [It is and will not be a unicorn, duh, if it were it would have shown. probably traction, m/m growth (incl churn) did taper off below double digit space while everything else stayed the same.] // My Q. from the posted cap table; It seems employees do not get a piece of the cake. Didnt get equity when they joined? Same 4 Rocket Internet, ppl got offered 2buy before IPO, everyone said no thanku.
6Wunderkinder  Wunderlist  Microsoft  Berlin  Start-Up  Scene  ecosystem  SAAS  subscription  model  freemium  termsheet  dilution  liquidation  preferences  Rocket  Internet  IPO 
june 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
Aaron Levie of Box - TWiST #224 - YouTube
min 35:40 - Freemium in the business space is even cooler than in the consumer space. min 39 - Marc Andreessen "how much do you need to win in this space? how fast do you need to grow, to win." [cost of customer acquisition (freemium, and or Bounty Model from Paypal) and retention]. and define what is winning, what scenario? what measure? ... key accounts long-term commitment? ad spend from key accounts? customer happiness - retention? resellers, dominating sales channels to a vertical of business type and SME/SMB's? min 53 - new playbook is now Get Big, then turn on revenue. disrupt the ecosystem/existing business model, winner takes all. min 54 - how you go from a small shop with profit to raising $+100m round telling than that they get multiples back in their investment, that comes when you live a time here in Palo Alto/Silicon Valley. (crunchbase.com/organization/box) + follow-up "having a playbook." + war for talent: 1 disenfranchised 2 ppl wnt 2 create value, 3 business model
freemium  business  model  Box.net  Dropbox  Google  Docs  Google  Drive  Microsoft  Enterprise  Consumer  friction  frictionless  Evernote  Slack  Gmail  Marc  Andreessen  Venture  Capital  Flickr  Yammer  enterprise2.0  Enterprise  2.0  Bounty  Paypal  SAAS  Why  Software  Is  Eating  the  World  Software  Is  Eating  World  Silicon  Valley  Salesforce  value  creation  added  value  war  for  talent  Top  war-for-talent  Cloudstorage  paradgimshift  paradgim  paradigm  shift  Google  Jive  Software  Jive  Netflix  cloudcomputing  Zappos 
may 2014 by asterisk2a

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