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- #151 Top CFO Takes for VC GPs & LPs
#151 Top CFO Takes for VC GPs & LPs
Q2 marches on! Appreciate the new format feedback as we power through busy season! We’ve aggregated some of the best VC GP / CFO reads we’ve seen recently - enjoy!
👋 Hi, I’m Doug! Welcome to @TheFundCFO crew! Every Tuesday/Thursday, we publish VC/CFO insights that matter - highlights from notable VC GPs, LPs, and CFOs/finance pros. Check out our VC Fund Playbooks, Models, Budgets, & Compliance Checklists @ Streamlined.Fund! Love what we’re doing? Consider upgrading to paid for deeper dives on Thursdays (most paid subscribers expense these insights!).
“By changing nothing, nothing changes.” -Tony Robbins
Top Reads of Recent History, VC CFO Style
Top CFO Takes for VC GPs & LPs
Revenue multiples matter!
It’s wild to look back at peak EV/NTM revenue multiples in late 2021. The top companies peaked at 62.5x! Applying that math to private companies, if you had $16m of revenue forecasted (and investors believed it), you were worth $1 billion (unicorn)! Today, things have come back to reality. Most companies are lucky to get a 10x multiple. That means you have to build a $100m revenue business to be worth $1 billion in the public markets. Times have changed!
Insights from Mostly Multiples 4/28: A Marketplace Meltdown:
Top Ten Medians:
EV / NTM Revenue = 15.2x
CAC Payback = 23 months
Rule of 40 = 52%
Revenue per Employee = $372K
Great Funds hit home runs over 2X more than Good Funds. 10X+ funds get 10X+ returns on 14.1% of their companies.
Nearly all the returns are driven by the 10X+ investments for Great Funds, proving the VC power law…
Across the board early stage VCs are losing money almost half the time
That’s all for today folks! Thanks for your support and spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”