This document discusses how app developers can finance growth through a metrics-based approach using revenue recycling. It introduces Pollen VC, which unlocks the value of accrued app store earnings to fund advertising spend and fuel faster user acquisition and growth, without the need for venture capital. The document covers key metrics like LTV, CPI, and cash flow modeling to illustrate how revenue recycling can achieve the same user acquisition spend with a smaller initial budget or enable spending 4x more on paid user acquisition with the same budget. Developers are encouraged to contact Pollen VC to have their LTV and cash flows modeled.
Businesses use The Daily Hundred to turn their influential customers into an extension of their marketing teams! Our platform allows businesses to connect with and reward these customers for creating and sharing branded content. Thousands of users login to our iPhone, Android and web app everyday to turn their influence into cash and rewards. There are currently two ways that users can earn rewards on our platform. The first way is by taking a picture with a brand's product or service and sharing that image on Facebook or Twitter. The second way is by sharing a message, created by the brand, with their friends and followers on Facebook and Twitter.
Word of mouth is the most effective form of advertising and we have created a platform that allows businesses of all sizes to run powerful word of mouth marketing campaigns at scale.
Jeremy Liew - Stanford Facebook Class PresentationAndrew Chen
This document discusses business models and revenue models for internet companies and apps. It notes that starting an internet or app company is now relatively inexpensive, with total annual fixed costs around $150,000. It also explains that achieving revenue breakeven is not too difficult if companies can deliver a targeted audience for advertising. The document then analyzes different revenue per thousand pageviews (RPM) levels from various companies and the pageview or install targets needed to hit different revenue goals. It concludes that companies need to either get very large in terms of audience/installs or focus on higher CPM advertising to be successful under different monetization models.
How GetNinjas uses data to make smarter product decisionsBernardo Srulzon
GetNinjas is a platform that connects customers needing services with professional service providers. Business intelligence plays a key role in optimizing the customer experience by measuring metrics at each step of the customer lifecycle. GetNinjas implemented Snowplow, an open source product analytics platform, to gain more granular insights from their data compared to limitations of Google Analytics. They structure their data team within cross-functional squads and aim to empower other teams to create and validate hypotheses for smarter decision making.
Corporate digital communities can be successful if companies apply lean startup principles such as testing community ideas with customers first before fully developing them, being willing to pivot ideas based on customer feedback, and ensuring the community closely aligns with business objectives. Key aspects include intimately understanding the target customer, connecting the community to specific and timely company goals, designing for desired user behaviors, and developing plans for measurement, content creation, and promotion to gain internal support.
Aaron Patzer - How to Take Your Start-up to the Next LevelCarsonified Team
Aaron successfully grew Mint.com from a small bootstrapped team to a large team that was acquired for $170M. In this session Aaron shared how he knew it was time to raise venture capital and grow his team aggressively. He also shared important lessons he's learned which you can directly apply to your business, whether you're raising venture capital or not.
This investor presentation summarizes Q4 2015 financial results and provides an outlook for Yelp. Yelp continues to grow its high-quality user-generated content and sees significant opportunity in the large and growing local advertising market. Key highlights include strong revenue growth of 51% in 2015, an adjusted EBITDA outlook of $90-105 million for 2016, and a long-term target model of 8-11% adjusted EBITDA margins. Yelp also discussed growth opportunities from its acquisition of Eat24 and SeatMe products.
This document discusses Kruma, a service that allows international travelers to exchange currency at the true exchange rate anywhere in the world using a Kruma debit card. Kruma offers pay-as-you-go and premium plans with capped ATM withdrawal limits and extended limits/benefits respectively. Fees are 1% or less for currency exchanges and cash withdrawals, addressing the 8-15% losses travelers typically incur. The founders aim to raise $1 million to launch the product in July 2018 and grow the user base to 35,000 monthly active users within 12 months.
What Happened After SaaS Companies Introduced Free Offerings Last YearOpenView
2020 was the year of free. And 2021 is the year of reaping the rewards. Let's dig into what happened when SaaS companies started to give away their products.
The document provides an overview of using metrics to make better decisions for startups. It discusses moving from tracking vanity metrics that are easy to measure to actionable metrics that matter. An example is given of a SaaS web app that tracks key metrics like sign-ups, activations and upgrades at each step. The actual baseline results are compared to assumptions, and different tests are discussed, like a video test that decreased conversions and an inspired test that increased revenue. The importance of learning faster through tests and data is emphasized, as is measuring faster and minimizing the time to get customers through the process.
The document appears to be about a company called Statsbot that provides a bot for Slack. It includes Statsbot's website and contact information. Various metrics are given about Statsbot's user base of over 25,000 weekly active users, 20% weekly growth in recurring revenue, and their goal of opening an API for data providers. The founders have 10 years of working together and degrees from Bauman Technical University.
Good Audience Fundraising Deck - Angel Roundsherm8n
This is the fundraising deck we used to raise money in London after Techstars.
While this almost killed our startup, (https://medium.com/good-audience/raising-money-in-london-almost-killed-our-startup-6ed9fca1ba88) we raised $182K total in an angel round.
Our total volume in sales is about to cross the total amount we raised =) Keep track of our progress here: http://goodaudience.baremetrics.com.
Matching Price to Value: 3 Lessons in Monetization from Menlo Ventures - Naom...Traction Conf
Creating long-term value for your customer and being compensated appropriately for that value is the key reason to start a company. Learn actionable monetization tips from the former Head of Growth at Evernote & Invoice2Go and now Investor at Menlo Ventures. As someone who has built new products from scratch, and helped existing products scale from 10M to over 100M users, Naomi empathizes with entrepreneurs at every stage of the business and product lifecycle.
Studies show that on average 67 percent of companies fall short in achieving their strategic goals. When it is distilled down, it all boils down to the following causes:
1. Poor goal setting
2. Lack of alignment to resources
3. Inability to track progress
4. People not connected to the strategy
5. No measurements or leading indicators
So an organization, especially startups may have a fantastic strategy but still get let down on the execution. And execution is everything. Inspired by the business model canvas, I came up with the Business Execution Canvas which I believe would be immensely helpful for startups. Feel free to connect on Linkedin <https://www.linkedin.com/in/nwachinemere/> to discuss the canvas, make recommendations, or request training on business execution and startup growth.
LTV prediction - How to save millions with MLViktor Gregor
This document discusses how machine learning can be used to predict customer lifetime value (LTV) for players in free-to-play games. It explains that accurate LTV prediction is challenging due to high variance between players and lack of long-term data, but can help optimize marketing budgets. The document outlines approaches for defining an ML prediction problem, training useful models, and communicating results to stakeholders in a way that demonstrates business value.
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...saastr
The internet economy is experiencing explosive growth, and more business models are now possible online than ever before. Join Suzanne Xie, Stripe’s Business lead for their Invoicing products and a former serial entrepreneur, as she shares her lessons for how internet businesses can use new tools to make more money for less effort.
How To Create A Successful Investment Pitch Deck by Piktochart and HighSparkPiktochart
This document provides tips on creating a successful investment pitch deck. It discusses including core elements like purpose, problem, solution, product demo, traction, market size, competition, business model, financials, roadmap, and team. It suggests spending more time on pages like financials, team, competition, and why now. It also recommends structuring the pitch to clearly identify problems in the market, gaps in existing solutions, and how your solution fills those gaps. The document advises considering hooks like strong early traction, big clients/partnerships, or an experienced team. It ends by noting the second part of the presentation demonstrates visualizing the pitch deck using a template.
This document summarizes Mint, a personal finance management application. It describes Mint's features for tracking transactions, assets, debts, and goals. It outlines Mint's business model of acquiring users through partnerships and generating revenue from referrals when users switch financial products. The document presents Mint's financial projections, identifying Google, Microsoft, and Yahoo as potential acquirers. It discusses Mint's risks and competitive advantages to mitigate new entrants.
Playcrafting - Mastering The Art Of Scaling Your Mobile GamePollen VC
At Pollen, we work with a lot of studios when they’re launching or scaling their game. Often times, we come across studios that make amazing games but just don’t know how to capitalize on the business side. We hope that by the end of this class, you’ll be well equipped to maximize your game’s potential
Prepare to Join the App Millionaires Club | Martin MacmillanJessica Tams
Delivered at Casual Connect Asia 2016
Popular reports suggest you need a high app store chart position to guarantee your game gets the visibility it needs to succeed. However, Pollen VC's research has found that outside the Top 25 app store rankings, an increasing number of games are generating more than a million dollars in revenue a year. Martin Macmillan will discuss how they do it and how you should prepare for launch to ensure that your game is a success.
How to Scale Your Game: Understanding the Metrics and How to Act on Them | Ma...Jessica Tams
Delivered at Casual Connect Asia 2017. This session will show how to make sense of your game’s metrics and establish whether or not paid marketing makes sense as a way to scale a game. At the core, having a good understanding of LTV is essential, and then understanding whether the unit economics work to use paid UA as a viable marketing channel. We will also cover how to finance growth, and explore the different options available.
The Most Important Metrics for Scaling Your User AcquisitionPollen VC
As app marketing gets more sophisticated, there’s an increasing focus on metrics of every sort. Having a clear understanding of your unit economics is extremely important specifically customer acquisition cost (CAC) and user lifetime value (LTV) – how much a customer costs to acquire and the expected value of that customer over time from your app or game.
Marketers are rightly highly focused on these metrics, but sometimes fail to see the bigger picture of what that data is telling them in terms of how to visualize growth potential.
Prepare to join the App Millionaires ClubPollen VC
This document discusses how PollenVC, a FinTech company, offers app and game developers access to financing and services to accelerate growth. It provides early access to revenue earned from app stores so developers can reinvest in user acquisition and scaling. Using case studies, it shows how recycling revenue in this way allows developers to stay cash flow positive with smaller budgets and acquire users faster than relying solely on platform payout schedules. Developers benefit from more control over their business and the ability to do more promotional spending earlier in the lifecycle.
PollenVC Pocket Gamer Connects London 2020 Pollen VC
The document discusses three key things to focus on before significantly scaling user acquisition (UA) spending.
1) Understand customer acquisition cost (CAC) and lifetime value (LTV) - the "north star" metric.
2) Determine how to fund increased spending on UA, exhausting least expensive options first.
3) Continually monitor how CAC and LTV change as spending increases so ROI remains high and the "machine" is running at full capacity. The goal is profitable growth through efficient use of capital.
Why You Should Monitor Operating Cash Flow and How to Do ItDan Bowser
Operating Cash Flow (OCF) is a practical measure of a business’ cash flow and may be the single most important metric for measuring the health of your core business operations.
This document provides an overview and summary of a venture capital presentation on European Innovation Academy. The presentation covers several topics related to venture capital funding including:
- The three main sources of cash for startups and the pros and cons of each which are revenue/customers, debt/banks, and equity/venture capitalists.
- How venture capitalists make money through management fees that typically consume 25% of a fund's principal and through carry/profit sharing which is usually 20% of fund profits.
- Key terms in venture capital deals like pre-money and post-money valuations, option pools, liquidation preferences, and anti-dilution.
- Tips for venture capital negotiations including focusing on
'Meet the Valuation' - Understanding Key Drivers of Early Stage ValuationsRaghav Bahl
This document discusses key drivers of early stage venture valuations. It explains that early stage valuations are difficult because of uncertainties and lack of data. The key drivers are sustainable growth, capital efficiency, and risk. Marketing efficiency is particularly important as it directly impacts growth and cash burn. The document provides examples of how changes in factors like contribution margin, revenue retention, and marketing efficiency impact the valuation model. It also warns about risks of overvaluation and undervaluation for startups and investors.
This document provides an overview of startup fundraising sources and strategies. It discusses common fundraising channels like friends and family, accelerators, venture capital (VC), bootstrapping, and crowdfunding. Key terminology is defined. The presentation then covers topics like the pros and cons of taking outside investment, how much money to raise, what investors look for, pitch deck components, post-funding responsibilities, and new opportunities under the JOBS Act including equity crowdfunding. The overall content aims to educate entrepreneurs on fundraising options and best practices.
At Cashrewards.com.au everyone gets paid to shop at over 1,000 stores. Registration is a one-click, 15 second step process that can earn members $1000s of dollars per year. We tackle the issue of increasing living costs by providing our members the cheapest way to shop in Australia giving cashback at stores such as Woolworths, eBay, Telstra, Amazon, Apple and more. The following is a one minute explainer https://www.youtube.com/watch?v=TLyO_AG7z4Q.
Retailers also benefit by being able to reduce their digital advertising spend with Google and Facebook who take 80% Globally http://www.cnbc.com/2016/07/28/google-and-facebook-are-getting-almost-all-digital-ad-money.html. Cashrewards gets paid a commission on each customer purchase and shares this with the customer in the form of cashback. This is a win-win as the retailers only pay on the confirmation of a sale as opposed to per view or per click and the customer receives cashback. This provides at least 400% more value to the retailer than spending with Google or Facebook https://mumbrella.com.au/iab-launches-affiliate-marketing-handbook-plans-measure-australian-market-403721.
Our exceptional growth substantiates the model and our hard work has been recognised by being named the winner in the Deloitte Tech Fast 50. To continue to benefit the Australian community our vision is simple: reach over 2 million members by the end of 2018.
https://www.slideshare.net/cgarner/cashrewards-investment-deck-online-shopping-community-australia
A detailed look at why SaaS business are so different from traditional software companies, and why traditional ways of looking at their finances fail to understand the business. Provides an alternative set of metrics that show the right way to look at a SaaS business.
For more on the SaaS business model and Metrics, see this blog post:
www.forentrepreneurs.com/saas-metrics-2/
The importance of Internet Maketing for businessesrjvelarde2
The document discusses starting and growing a small business. It addresses common reasons for starting a business like increasing income or enjoying more freedom. It then discusses the importance of lead generation, customer retention, and marketing strategies like search engine optimization, paid advertising, and tracking results. The key message is that consistent, measurable marketing over time is needed to achieve steady revenue and profit growth for a small business rather than inconsistent efforts.
Pollen VC Building A Digital Lending BusinessPollen VC
Pollen VC builds a digital lending business to help app developers access their app store earnings early. Their tech platform connects directly to app stores to price risk in real time. This allows developers to reinvest earnings daily into user acquisition instead of waiting 60+ days for platforms to pay out. Typically, developers fail to get early credit and can't acquire more users, but Pollen VC's new model provides funding using real-time app data to validate risk. They aim to fund more opportunities for long tail developers by improving access to working capital.
The document outlines the ten steps to starting a business, as presented in a SCORE workshop. The steps include: 1) Identifying skills and experience, 2) Performing a risk assessment of the business idea, 3) Determining financial needs, 4) Defining customers and products/services, 5) Identifying organizational structure and operations, 6) Learning legal structures and resources, 7) Developing a marketing plan, 8) Developing a financial plan, 9) Integrating all plans into a business plan, and 10) Working the plan and making adjustments. The workshop provides details and tips for completing each step in the startup process.
Funnels Workshop Web Summit 2014 @geckoboard @GASofia Quintero
The document discusses customer funnels and analytics. It defines a funnel as visualizing a customer's journey from stranger to follower through various stages like acquisition, activation, retention, revenue, and referral. It emphasizes measuring key metrics at each stage of the customer journey. It distinguishes between vanity metrics that don't change behavior and actionable metrics that can help improve the funnel. The document provides resources for testing and optimizing the funnel through techniques like A/B testing and cohort analysis.
NYU MS in Integrated Marketing Capstone Project, Spring 2017
Business name: Old Rebel Society
The unmet need: The untapped resource and the specific barriers
Mission: Our Mission: Provide equal entrepreneurial opportunities for people ages 55+
Business model: Virtual business incubator + Crowdfunding Platform
GTM strategy
P&L projection
Similar to How to Finance Your Growth A Metrics Based Approach - Martin Macmillan (20)
when the distance between the sender and receiver is short (e.g. TV box and a remote control) infrared waves are used
for long range distances between sender and receiver (e.g. TV broadcasting and cellular service) both microwaves and radio waves are used
radio waves are ideal when large areas need to be coverd and obstacles exist in the transmission path
microwaves are good when large areas need to be covered and no obstacles exist in the transmission path.
advantages:
mobility
a wireless communication network is a solution in areas where cables are impossible to install (e.g. hazardous areas, long distances etc.)
easier to maintain
disadvantages:
has security vulnerabilities
high costs for setting the infrastructure
unlike wired comm., wireless comm. is influenced by physical obstructions, climatic conditions, interference from other wireless devices .
The information from sender to receiver is carrier over a well defined frequency band.
This is called a channel
Each channel has a fixed frequency bandwidth (in KHz) and Capacity (bit-rate)
Different frequency bands (channels) can be used to transmit information in parallel and independently.
radio waves are generated by an antenna and they propagate in all directions as a straight line
radio waves travel at a velocity of 186.000 miles per second
radio waves become weaker as they travel a long distance.
there are 3 modes of propagation:
surface mode – for low frequency waves
direct mode – for high frequency waves
ionospheric mode – long distance high frequency waves.
Guglielmo Marconi invented the wireless telegraph in 1896
Communication by encoding alphanumeric characters in analog signal
Sent telegraphic signals across the Atlantic Ocean
1914 – first voice communication over radio waves
Communications satellites launched in 1960s
Advances in wireless technology
Radio, television, mobile telephone, communication satellites
More recently
Satellite communications, wireless networking, cellular technology.
Transmitting voice and data using electromagnetic waves in open space (atmosphere).
Higher frequency means higher energy photons
The higher the energy photon the more penetrating is the radiation.
The information from sender to receiver is carrier over a well defined frequency band.
This is called a channel
Each channel has a fixed frequency bandwidth (in KHz) and Capacity (bit-rate)
Different frequency bands (channels) can be used to transmit information in parallel and independently.
Assume a spectrum of 90KHz is allocated over a base frequency b for communication between stations A and B
Assume each channel occupies 30KHz.
There are 3 channels
Each channel is simplex (Transmission occurs in one way)
For full duplex communication:
Use two different channels (front and reverse channels)
Use time division in a channel.
when a high-frequency alternating current (AC) passes through a copper conductor it generates radio waves which are propagated into the air using an antenna.
radio waves
Celebrity Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And ...
How to Finance Your Growth A Metrics Based Approach - Martin Macmillan
1. HOW TO FINANCE YOUR GROWTH: A METRICS BASED APPROACH
MARTIN MACMILLAN, CEO
2. How to Finance Your Growth: A Metrics Based Approach 2
ABOUT POLLEN VC
MARTIN MACMILLAN, CEO & FOUNDER
Pollen VC provides a new type of growth capital for
app developers who are ready to scale
We enable developers to fund advertising by
unlocking the value in app store revenues early
Our model is a flexible and non-dilutive alternative to
equity financing, allowing developers to retail control
while growing their business
Our mission is to get start-ups to think about capital
efficiency, using the right type of funding for the
right purpose
3. 3
Everyone knows the stories about a few apps that go
viral with no promotion.
For the 99.9% of all other apps launched, it’s necessary
to spend to acquire users.
THE REALITY IS THAT YOU
NEED TO SUPPORT YOUR
APP WITH PAID UA
How to Finance Your Growth: A Metrics Based Approach
4. 4
Let’s start with the basics…
UNIT ECONOMICS OF PAID UA
LTV - Lifetime Value
• Expected value of that customer
over it’s lifetime, i.e. total
amount earned
• What does it mean for app
developers?
• How long is a lifetime?
CPI - Cost Per Install
• How much does it cost to acquire a
user?
• Where do I find these users?
• How do I target these users?
• When do I pay for these users?
How to Finance Your Growth: A Metrics Based Approach
7. 7
RECIPE FOR SUCCESS
Understand what
it costs to acquire
a user
How to Finance Your Growth: A Metrics Based Approach
How long before
you receive the
revenue?
The revenue
they will
generate
VS
+
8. How to Finance Your Growth: A Metrics Based Approach 8
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
171
181
191
201
211
221
231
241
251
261
271
281
291
301
311
321
331
341
351
361
PROFIT & LOSS DOES NOT
EQUAL CASH-FLOW
Days from launch
9. 9
THE PROBLEM: PLATFORMS
ONLY PAY OUT REVENUE UP
TO 60+ DAYS AFTER YOU’VE
EARNED IT.
LAUNCH
You’re earning money from day 1
This is your money
trapped in the payment system
Platforms release
your cash…
How to Finance Your Growth: A Metrics Based Approach
10. 10
HOW TO USE THIS TO YOUR ADVANTAGE
Unlock the value of your earnings
rather than using venture capital to
fund growth
Think of your accrued
app store earnings as an
untapped asset
How to Finance Your Growth: A Metrics Based Approach
14. 14
LTV CALCULATION ASSUMPTIONS
How to Finance Your Growth: A Metrics Based Approach
$1.50
LTV
365
Day max.
$1.00
CPI
1,000
Installs daily
15. How to Finance Your Growth: A Metrics Based Approach 15
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
171
181
191
201
211
221
231
241
251
261
271
281
291
301
311
321
331
341
351
361
LET’S GET BACK TO LTV
Days from launch
16. How to Finance Your Growth: A Metrics Based Approach
-$100,000
-$80,000
-$60,000
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
16
NET CASH POSITION
Net Cash Position
first becomes
Positive
First App Store
payment hits bank
account
Spending $1,000/
day on ads
17. How to Finance Your Growth: A Metrics Based Approach 17
USING REVENUE RECYCLING
NetCashPosition
-$400,000
-$320,000
-$240,000
-$160,000
-$80,000
$0
$80,000
$160,000
$240,000
$320,000
$400,000
Weeks After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
Net Position w Revenue Recycling Net Position
-$100,000
-$80,000
-$60,000
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
18. How to Finance Your Growth: A Metrics Based Approach 18
USING REVENUE RECYCLING
NetCashPosition
-$400,000
-$320,000
-$240,000
-$160,000
-$80,000
$0
$80,000
$160,000
$240,000
$320,000
$400,000
Weeks After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
Net Position w Revenue Recycling Net Position
-$100,000
-$80,000
-$60,000
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Recycling
revenue allows
you to achieve
same UA
spend on 20%
of your
starting
budget or
spend 4x more
on paid UA
with same
budget
c.$20,000 required
c.$80,000 required
19. How to Finance Your Growth: A Metrics Based Approach 1919
Reinvest earned LTV
directly into advertising
Acquire more
users faster
Extract LTV
on a daily basis
A NEW WAY…
Extract your LTV
as you earn it, to fund
your advertising spend
and fuel your growth.
Keep your VC money
in the bank!
20. How to Finance Your Growth: A Metrics Based Approach 20
LTV MODELLING
PollenVC is creating a set of tools using readily available metrics of
retention and ARPDAU to help developers understand and model LTV
Understand payback periods, and how to measure
Model financials based on metrics to show how much UA you can fund,
and how quickly you can grow
If your cohorts are not delivering, chop the marketing spend and
redeploy elsewhere
21. IF YOU WANT US TO MODEL YOUR LTV
AND CASHFLOW PLS EMAIL US!
martin@pollen.vc
@PollenVC