the 10x Club – how internet startups can be evaluated by VCs
Bill Gurley wrote a detailed blog post about All Revenue is Not Created Equal: The Keys to the 10X Revenue Club which I stumpled upon, literally using the service. It is a purely financial perspective on Internet startups, but it gives a comprehensive overview of a VCs evaluation scheme. Have a detailed look on the article, just to summarize the 10xClub is all about (according to Bill Gurley):
- Sustainable Competitive Advantage
- The Presence of Network Effects
- Visibility/Predictability Are Highly Valued
- Customer Lock-in / High Switching Costs
- Gross Margin Levels
- Marginal Profitability Calculation
- Customer Concentration
- Major Partner Dependencies
- Organic Demand vs. Heavy Marketing Spend
- Growth
Comments Off
websensei on October 12th 2011 in Digital Products and Markets, Entrepreneurship