Private company valuation is arguably one of the most important and often, opaque term in a private market transaction. Especially in early stage private market transactions wherein performance data is limited, the valuation can be a lot big function of the investment climate - it could be ‘entrepreneur wish’ (bull run) or the ‘investor wish’ (bear … Continue reading Entrepreneur’s Guide to Private Company Valuations
Everybody loves growth! Faster the better? – the first and foremost metric an investor looks to know about and arguably the biggest driver of startup valuation. Leading investors have defined startups as entities chasing fast growth (and I can’ t agree more!) – the importance of this metric is well understood, having said that what … Continue reading Chasing Growth – pursuing the right metrics at the right time
I like entrepreneurs who think hard about the unit economics (UE) of their business from very early on in the post 'product - market fit' phase. Having said that, I love entrepreneurs who think not only about UE but also, the 'scalability of their unit economics'. Eliminating the jargon here, what I mean is that … Continue reading Unit Economics matter, Scalability of the Unit Economics matters more…
“If you can’t measure it, you can’t improve it” A lot has been written about the concept and importance of ‘product – market fit’ – having said that, I have always found entrepreneurs yearning for some structure or simple framework around identifying, defining, measuring and improving key metrics that would enable them to claim … Continue reading Measuring ‘Product-Market Fit’ – Is your startup ‘CURWing’ in the right direction?
"The purpose of a business is to create and keep a customer" - @ Peter Drucker - and I can't agree more! Customer retention is an integral driver of 'Customer Life Time Value' (think about this as total revenue earned per customer before she defects from the service multiplied by the 'margin' in the business) which … Continue reading ‘Retention’ – The Forgotten (Super) Growth Driver !!
Over the last 6 years, I have had the privilege to work along some of the best entrepreneurial minds in the country - this allowed me to understand what each one of them was doing differently or not so differently. The following post is a summary of my findings on what differentiates successful internet companies … Continue reading 3 Cs of Profitable Growth – ‘Key Metrics to ‘kill for’ or else get ‘killed’’
We as venture investors love highly scalable business models! - "But what does that mean in simple terms?" - has often been the question thrown right back at me. On the other hand, I continue to interact with entrepreneurs who choose a highly scalable business model over a relatively lesser scalable business model even though … Continue reading Business Model Scalability – Understanding & applying the concept to adopt the right business model