asterisk2a + saas + yield   5

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
Slack's massive funding round is everything amazing and insane about the startup bubble | The Verge
[ COMPETITION 4 HOT DEAL, Private Market (Private Equity) highest bidder wins. Thus to get in, people make compromises. ] "It’s the best time ever in the history of the world, or at least the tech industry, to raise money. Will it get better? It’s possible. Six months from now, we might say darn it, we should have waited," Butterfield told me. "On the other hand it’s a pretty amazing deal. In a certain respect it would have been irresponsible not to take it for five-ish percent of the company on clean terms." For those not familiar with venture capital, Butterfield means he only had to give up a small percentage of the ownership in Slack to get this new funding, and that the deal didn't come with a bunch of crazy terms which favored the new investors. [...] [ also mentioned 20-30% rise in HR cost compared to last year! << SF/SV becomes prohibitive for bootstrapping & even for Seed/Angel backed start-ups w 2-5m. Run out of time (MVP fit) bc run out of cash bc high local burn rate. ]
Slack  Unicorn  growth  round  Silicon  Valley  San  Francisco  distortion  Private  Market  Private  Equity  Venture  Capital  SAAS  Enterprise  2.0  valuation  hunt  for  yield  speculative  bubbles  asset  allocation 
april 2015 by asterisk2a
Box’s updated S-1 contains onerous hidden penalties if the company is late to IPO | PandoDaily
As I’ve written time and again, Box’s destiny is hardly certain at this stage and drawing such rigid lines in the sand could easily come back to burn the company. Levie, it seems, had no other choice than to accept these onerous terms. It’s not altogether uncommon for late stage investors to request downside protection when a company’s performance is in question. Early stage investors do the same by way of liquidation preference and discounted, capped notes. But the very extent of TPG and Coatue’s protections suggest that Box was in a particularly bad negotiating position. With just eight months of runway left when filing its S-1 in March, this is indeed the case. [...] +++ insert price war from Google and Amazon. Rackspace not able to compete with companies that can feed Zero Margin Offerings through cashcows (AdSense) - http://youtu.be/8uMEjg9vVQA / Or the other way around; VC firms buying into an IPO for 2-3x return and the name of the company on its homepage http://bit.ly/1jpyZTm
Box.com  Box  IPO  S-1  Venture  Capital  hunt  for  yield  late-stage  funding  growth  round  Why  Software  Is  Eating  the  World  Software  Is  Eating  World  SAAS  Cloudstorage  cloudcomputing  Amazon  Google  Rackspace  multi-product  company 
july 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

related tags

2.0  accounting  acquisition  advice  allocation  Alto  Amazon  Angel  asset  B2B  B2C  Berlin  BlackRock  Box  Box.com  brand  branding  brands  BRIC  bubble  bubbles  burn  business  CAC  Capital  cash  churn  class  cloudcomputing  Cloudstorage  commoditization  commodity  company  consumer  convenience  crutch  customer  Decacorn  defensible  differentiate  differentiation  distortion  Domo  downround  DropBox  Eating  economic  economics  economies  Economy  emerging  Enterprise  Equity  Europe  expectations  experience  Fab.com  financial  first  Fit  flow  FOMO  for  Francisco  free  freemium  friction  frictionless  Frontier  Fund  funding  GAAP  Google  Groupon  growth  hacker  herd  herding  Homejoy  hot-money  hunt  indefensible  Industry  Investor  IPO  Is  KPI  late-stage  Lean  lesson  linkedin  liquidation  liquidity  London  long-term  Lyft  management  Market  Marketplace  Markets  me  metrics  middle  middleman  mobile  model  multi-product  Mutual  Net  New  NIRP  Normal  of  on-demand  Palantir  Palo  Party  plan  preferences  price  Private  product  Product/Market  Promoter  Proposition  QE  rackspace  rate  repression  retention  risk  round  runway  S-1  SAAS  Salesforce  San  scale  Scene  Score  secular  Seed  services  Share  Silicon  Slack  Snapchat  Snapdeal  Software  speculation  speculative  stagnation  Start-Up  Street  sustainability  sustainable  the  thinking  Thumbtack  too  traction  training  trap  Uber  UK  Unicorn  upselling  USA  user  Valley  valuation  Value  values  VC  Venture  view  Wall  war  western  Why  Workday  world  X  yield  your  Zappos  Zenefits  ZIRP 

Copy this bookmark:



description:


tags: