I had two conversations last week, each of which reinforces a simple phenomenon that I have constantly emphasized over the last five years in my writings.
On Wednesday, I had lunch with Brian Jacobs, General Partner at Emergence Capital. We were discussing our respective startup portfolios, and Brian mentioned that his firm’s preferred stage for investment is when a company has about a million dollars in revenues. Presumably, at that point, the experimentation with product, business model, pricing model, customer acquisition strategy, cost of conversion, and other key issues have settled down. That means, a cash infusion of, say, $7 million will result in a somewhat predictable set of outcomes. Most importantly, the fresh cash would accelerate customer acquisition, and hence revenues.
To read the full, original article click on this link: The Million Dollar Club: Introduction | Sramana Mitra
