Keeping It Simple: Unit Economics

Giff Constable metrics, startups

Back in November, I wrote about financial modeling and wanted to pick up the topic again. I think this is very important for lean startups.  A financial model focuses your brain on key goals and assumptions. It’s great to obsess over product-market fit, but you also need to take the time to make sure your economics are reasonable as well. …

Startup Tools: equity and investment (cap table) model

Giff Constable startups, venture capital

As an entrepreneur, have you struggled to figure out what your ownership stake looks like over multiple rounds of dilution from investors and employee options? In the spirit of sharing modeling tools I use when thinking about a startup, here is an Excel spreadsheet for modeling out cap table equity and dilution across a number of capital raising rounds.  There’s …

Freemium Business Model Template

Giff Constable metrics, startups

Update: you can still download the model if you want and see if there are any pieces you can use, but I am working on a new version that is a little more cash-oriented. Right now, it isn’t explicitly modeling out annual subscriptions but rather averaging a monthly revenue level, and I think that should be fixed. Mark Suster of …

Swan Song for IT?

Giff Constable technology

Randall Stross over at the NYTimes recently wrote about Thomas Siebel’s contention that Information Technology’s “glory days are past — long past, having ended in 2000.”  According to Siebel, from 1980 to 2000, “All you had to do was show up and not goof it up… All ships were rising.” That is, of course, an absurd statement. Those 20 years …