Fred Wilson’s “Return on Burn” (Excel Worksheet Attached)

Minimum valuations and their required revenue at fixed value-creation-multiple of cash consumption. In the last blog post I wrote about Fred Wilson's excellent insight into value creation relative to cash burn. I got a lot of questions about it so here is an Excel spreadsheet for you to download and play with -- let me … Continue reading Fred Wilson’s “Return on Burn” (Excel Worksheet Attached)

Pitch Clinic: VC Investments Need Hyper-Growth (D’oh!) — Excel Worksheet Attached.

Sounds obvious. So I am puzzled when I get pitches where the basic parameters of investment returns are not met.  There are many different types of venture capital investors. You should know which type of investor you are talking to. So here's one real example from last month: We're selling an edge appliance for IoT … Continue reading Pitch Clinic: VC Investments Need Hyper-Growth (D’oh!) — Excel Worksheet Attached.

Datasets for Public Companies with Negative EBITDA or Net Income

After the last blog post (Startups: Don't compete on "nimble" and "cash burn.") I got a lot of questions on how to look at these public companies with negative EBITDA or negative Net Income. Here are some ideas. Dataset 1: Public Companies with Negative EBITDA Some companies have a negative EBITDA, but massive revenue growth, … Continue reading Datasets for Public Companies with Negative EBITDA or Net Income

Startups: Don’t compete on “nimble” and “cash burn”.

Fifteen years ago I was sitting on a panel with senior executives of large enterprises. We were discussing how startups, with their limited resources, are competing against established, well-funded public enterprises. A Corporate R&D executive of a public company quipped: Publicly traded companies usually can't afford to lose money. Internet companies and startups can, at … Continue reading Startups: Don’t compete on “nimble” and “cash burn”.

Digital Transformation Strategy — You Don’t Need One.

I talk a lot with very large enterprises in Europe, Asia, and Latin America.  Sometimes they have a question regarding their IT infrastructure, sometimes they want to hear about shifts in industry trends (few of them want to hear 'trends in the Silicon Valley,' thank god!). Sooner or later they tell me about their digital … Continue reading Digital Transformation Strategy — You Don’t Need One.

“Flipping” your Company to the US?

I mainly help U.S.-based companies set up shop and scale for revenue in non-US regions. But I see more and more interesting deals where European or Asian companies are coming to the U.S. (Disclaimer!) There are usually two considerations why companies (startups and enterprises alike!) set up a dedicated U.S. entity: international regulations and litigations, … Continue reading “Flipping” your Company to the US?

Bring me Problems.

The management-craze of "bring me solutions" has gone too far. I recently met with two spin-out teams of enterprises where the engineers and interim-CEO were scared to share any challenges or problems with corporate management because they were expected to be more "solutions-oriented." When I went back to one of the senior executives with a problem … Continue reading Bring me Problems.

Developer-centric Startups for Critical Applications

Most DevOps centric startups are focusing on the Dev, not the Ops. Many tools and startups start in Test & Dev (versus "production" or "in-revenue" applications). But really hard problems in DevOps are often connected to in-revenue, critical applications. These applications have real-time and high-availability requirements and "exactly-once" execution of commands. I have the privilege … Continue reading Developer-centric Startups for Critical Applications