Evaluating New Age Startups: Profitability Vs Growth

Evaluating New Age Startups: Profitability Vs Growth

@amitranjan

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2 months ago 153

Tech #powerlaw #growth #startups #VentureCapital #TechStartups #startupeconomics #BusinessModels #profitability #funding #valuations #growthhacking

Evaluating New Age Startups: Profitability Vs Growth

@amitranjan2 months ago

Evaluating New Age Startups:
Profitability Vs Growth

1/13

Startups = Growth
“A startup is a company designed to grow fast”
Paul Graham - YCombinator

2/13

Startups are Risky: Most Die, Few
Change the World
• Traditional finance (debt) ruled out
• En…

3/13

Venture Capital Model – Power Law
Fund Life ~ 7 yrs | 1/10 Success Probability | Large Outcomes (1…

4/13

Large Outcomes (100X) Imply
• Large TAM
• Rapidly shifting user behavior – new habits, repeat us…

5/13

Growth v/s Profits is a Constant Balancing Act
Depends also on business types – Ecommerce v/s Mark…

6/13

The Startup Glide Path Framework

7/13

Early Stage
(Seed – Series A)
• Focus on PMF
• Cash Burn funds Growth
• Early Monetization
…

8/13

Indian Tech Startup IPOs Q1’22 Crash??
Is the Growth v/s Profitability equation to blame?

9/13

Experiential / Platforms

• Defensible competitive advantage
• Less competitive, no offline eq…

10/13

Problem is Valuation, Not Growth vs Profits
• Post 2008 QE, Easy liquidity -> Hot Money into Asset…

11/13

Credits
• http://www.paulgraham.com/growth.html
• https://www.nfx.com/post/new-rules-growth-profi…

12/13

https://twitter.com/amitranjan
https://twitter.com/amitranjan
Thank You...
https://webyantra.com…

13/13

@amitranjan

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