Measuring Network Effects
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
“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?
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’’
In my first post about ‘Importance of the Supply side’, I talked about the ‘Chicken and Egg’ problem (Found here - Winning the Marketplace - Part I 'Importance of the Supply Side') and how quality supply on-boarding, retaining and incentivizing is key to building a strong value proposition for the demand side. Retaining and scaling … Continue reading Winning the Online Marketplace – Part V ‘Revisiting Importance of the Supply Side’
The one thing I observe is common across most successful entrepreneurs is that that they doggedly watch their business metrics. And they do this to identify key challenges, seek help from investors / mentors quickly without mincing words. They then employ some of their best brains to address the right problems to come up with strategic initiatives … Continue reading Winning the Online Marketplace – Part III ‘Online Marketplace Business Metrics – The What, When and Why’
As you think about developing the core value proposition for the consumer ('demand' side) of your marketplace business (be it product or services), there are three essential aspects that the platform needs to solve for – (1) Discovery (2) Decision making (3) Delivery aka the three 'Ds'. Before we get into the specifics of how to solve for each of them, it’s important that to define these … Continue reading Winning the Online Marketplace – Part II ‘Developing a Value Proposition for the Demand Side’