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> if you don't fit their narrative, for example you have large service revenue or you have only few enterprise clients, then you are out of luck Can you clarif
by reggieband 7y ago
> if you don't fit their narrative, for example you have large service revenue or you have only few enterprise clients, then you are out of luck
Can you clarify this? What do you mean by "large service revenue" and why does that mean the founders are out of luck?
- doh 7y agoIt was poorly phrased so I changed it. I meant that if a big chunk of your revenue comes from services, they are not going to be very enthusiastic about your business.
- reggieband 7y agoThank you for the clarification. I hope I can ask another. What is the alternative that would make them enthusiastic? That is, if I am bootstrapping a business and want to attract these kind of investors then what sources of revenue would they like to see other than revenue from services?
- andrewmutz 7y agoProduct subscription revenue
- doh 7y agoWell, SAAS. That means subscription revenue, preferably in a market with large TAM that has simple CAC/LTV and churn calculations. Everything else is essentially a hassle.
- reggieband 7y agoI know Customer Acquisition Cost and LifeTime Value from working in free to play games. Total Available Market is a new acronymn/initialism for me. Funny how I don't know if it is pronounced "tam" or "tee, ay, em".
- doh 7y agoDon't worry, we all learn something every day. TAM/SAM/SOM are quite important metrics while judging a business. Sequoia [0] has some good information on it. [0] https://www.sequoiacap.com/china/en/article/measuring-product-health https://www.sequoiacap.com/china/en/article/measuring-produc...