Great article on what creates a valuable company – while the article is rooted in a discussion around “revenue multiples”, the key characteristics it outlines seem generally true for valuable companies. Summary:
1. Sustainable competitive advantage
2. Network effects
3. Revenue visibility
4. Customer lock-in
5. Gross Margins
6. Marginal profitability/ Profit scalability
7. Customer concentration
8. Partner dependency
9. Organic demand
10. Growth

Read on
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Alok Mittal

Alok is a first generation entrepreneur, currently CEO and Co-founder of Indifi, a platform for small business lending.

Alok is a board member at TiE Delhi, and a founding member of Indian Angel Network.

Prior to Indifi, Alok ran India venture operations for Canaan Partners in India, with focus on internet, technology and BPO space. Earlier, Alok cofounded JobsAhead.com, a leading job portal which was acquired by Monster.com. Alok is a computer science graduate from IIT Delhi and, postgraduate from UC, Berkeley.

The views expressed on this site are personal views of Alok, and do not constitute an offical opinion of any company or organization.