Look at your startup’s CAC to decide if you should launch another productUntil recently, it was widely accepted that startups, constrained by limited resources, should primarily concentrate on a single product.
Investing in customer acquisition is justified when the net present value of the profits from the acquisition exceeds the customer’s customer acquisition cost (CAC).
Customer acquisition and product development stand out as a startup’s most important investments.
Customer acquisition and product development stand out as a startup’s most important investments.
With the rise in CAC, the relative value of customer acquisition remains the same compared to new product development.
Just how backed up are the venture capital markets today?
That’s what a recent data analysis indicates is happening today in one critical venture capital market.
The value of the most mature startups in the United States that need to find an exit neared the $1 trillion mark through Q3 2023, according to a recent PitchBook analysis.
The figure underscores how weak the exit climate has been over the last two years and highlights the sheer mass of illiquid equity investments made into startups that call the United States home.
Still, the United States’ venture capital market is worth about half of the global whole, so when we discuss Yankee territory, we’re nevertheless talking about a huge portion of the startup market.
BlackRock has yet again cut the value of its holding in Byju’s, slashing the implied valuation of the Indian startup to $1 billion from $22 billion in early 2022, according to disclosures made by the asset manager.
At the end of October last year, BlackRock said it valued Byju’s shares at about $209.6 apiece, down from the peak of $4,660 in 2022.
This isn’t the first time BlackRock has cut the worth of its holding in Byju’s — and BlackRock isn’t the only investor that has severely downgraded how they value Byju’s, but the new adjustment is by far the most drastic.
Prosus, which owns about 9% in Byju’s, said late last year that it valued Byju’s at “sub $3 billion.” At $22 billion, Byju’s ranked as India’s most valuable startup.
The valuation markdown is a stunning reversal in fortune for Byju’s, once the poster child of the Indian startup ecosystem.
USDC stablecoin issuer Circle files confidentially for an IPO Here we go againCircle Internet Financial (Circle) has confidentially filed for a proposed IPO, the company said on Thursday.
Circle is the issuer of the stablecoin USDC, which has the second-largest market capitalization on the market, worth about $25.25 billion, according to CoinMarketCap.
The largest stablecoin, Tether, had a market cap of $94.65 billion, at the time of publication.
The number of shares and price range for the proposed IPO is yet to be determined, the company said.
Circle did not immediately respond to queries on how this IPO will be different from its previous SPAC efforts.
In October, Box unveiled a new pricing approach for the company’s generative AI features.
Instead of a flat rate, the company designed a unique consumption-based model.
Each user gets 20 credits per month, good for any number of AI tasks that add up to 20 events, with each task charged a single credit.
If the customer surpasses that, it would be time to have a conversation with a salesperson about buying additional credits.
Spang says, for starters, that in spite of the hype, generative AI is clearly a big leap forward, and software companies need to look for ways to incorporate it into their products.
Love ’em or hate ’em, NFTs can survive thanks to the communities that drive themNFTs have suffered everything from ridicule and scams to a broad dip in demand due to the crypto winter.
Sometimes it almost feels like some of the projects in the space are kept going simply on hopes and dreams.
Most people are holding on to their NFTs regardless of their monetary value, according to Yat Siu, co-founder and executive chairman of Animoca Brands.
Making money from NFTs validates their holders’ conviction, but Siu thinks there are more important factors driving the persistent ownership.
“It’s not a crazy idea, but NFTs make [the experience] more powerful by bonding them together.
Businesses are working hard to conform to traditional heuristics like Rule of 40 (i.e., the idea that the sum of revenue growth and profit margin should equal 40%+, a metric that Bessemer helped popularize).
The world has over-rotated into an FCF margin mindset over a growth mindset, which is backward for growing efficient businesses.
Long-term models show that even in tight markets, growth should be valued at least ~2x to 3x more than FCF margin.
While a margin increase has a linear impact on value, a growth rate increase can have a compounding impact on value.
We show the detailed math below, and it’s confirmed by public market valuation correlations when you backtest the relative importance of growth versus FCF margin.
