A good friend of mine just exited the business he founded for $25mm. Since he built the business on so little outside investment, he owned 52% at exit and took home $13mm. This type of exit brings up an important……
Read MoreCash efficiency is as important as growth, especially when you’re a fast growing, cash burning startup with limited capital. One measure of cash efficiency is revenue/total capital invested. When you’re in early revenue the metric will look abysmal, but as……
Read MoreWhat’s the level of investment needed to build a tech company that goes public? The data and observations from 151 tech IPOs are below. Software businesses needed $137mm of equity. On median, publicly traded software companies raised $137mm through their Series……
Read MoreHow many rounds has it historically taken tech companies to go public? Based on the data from 150 IPO’s, the answer varies depending on industry. The data and observations are below. On median, publicly traded software companies raised through their……
Read MoreBelow are revenue multiples for publicly traded consumer tech companies we follow (B2C). Industries vary widely. Commentary is below. Social media is settled around ~8x. The median revenue multiple is now 7.5x and the last 4 quarters are averaging 7.9x.……
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