You’re unlikely to be profitable at exit

Venture backed companies like Airbnb, Uber, WeWork, and Spotify, are unprofitable. Is this the norm or just a trend for the more recent vintage of high flying companies? To answer that question, we took a look at the operating income……

Read More


ACV is a dumb metric

There, I said it. Average Contract Value is (“ACV”) is a vanity metric that does not deserve focus. It is a byproduct of your business model, not a driver of it. It shouldn’t be put on a pedestal. Here is……

Read More


Tech company multiples Q2

Below are revenue multiples for publicly traded consumer tech companies we follow (B2C). The data is as of June 30th. Industries and therefore multiples vary widely. Commentary is below. Social media is back at 9.4x. The highs in 2017 were……

Read More


SaaS revenue multiples in Q2

Despite the current tumult, SaaS comps are showing unbelievable strength: of the 82 SaaS companies we follow, the average public SaaS business is trading at 17.9x revenue while the median is 11.3x. Interestingly, the gap between the average and median……

Read More


How to ask your investors for help

Every time you communicate with one of your investors whether it’s over email or over the phone, ask for something.  The right way to do this is to be specific.  Below are examples of the wrong way and the right……

Read More