ENT 526 Lecture Notes - Lecture 10: Performance Indicator, Super Angel, Stoping
29 Nov 2016
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Fo(cid:272)us o(cid:374) produ(cid:272)t a(cid:374)d te(cid:373) develop(cid:373)e(cid:374)t. do(cid:374)"t spe(cid:374)d money on testing it. Once in the market then focus on making money. Alignment with customer, good management team, -> gain many revenue streams. Then start building out other parts of your company. Start-up valuation is more an art than a science: start-ups are about hypothesis. Start-up valuation models that underestimate market expansion due to network effects fail to invest. Network effects: value rises as more people use the platform. You value based on the network, not on the revenue stream. Key performance indicator (kpi): the new valuation fundamentals, kpi = measurable indicators of scalability and execution. User engagement, number of installs, customer acquisition cost, conversion rate, etc. A (cid:272)o(cid:373)pa(cid:374)y that is(cid:374)"t (cid:373)aki(cid:374)g a(cid:374)y (cid:373)o(cid:374)ey (cid:272)ould still be worth billions if it starts making a lot of money very quickly in the near future. Sources of start-up funding: equity, debt, crowdfund, grants (sciences, we are seeking k for 25%.
