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
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.
Latest posts by Alok Mittal (see all)
- Promoters or Entrepreneurs – A choice for Private Equity players - August 3, 2019
- Startup Marathon Mindset - March 25, 2019
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