speed is the key to everything. So for a SaaS company, when it exits the market, what factors will keep it at the highest valuation? The answer is: revenue, revenue growth, net retention, and market size accessible. If we compare the example I mentioned at the beginning with these four factors as a benchmark, we will see that it fits these four requirements almost perfectly. After all, no one will turn away the cheapness that comes in vain. Despite
expanding on this model, soon my debt would reach unsustainable levels. But at the same time, I'm going to dominate the market share of what I sell -- unless someone sells that kind of stuff at a lower sms marketing service price. And in the capital market, VC is the one who makes the bet: if a startup can grow quickly and capture the lion’s share of the market, it can bring monopoly benefits, even if it entails considerable losses. But no one knows how and when the startups that have dominated the market segment will be profitable. As Matt Levine wrote in the
report: You thought it was your friend who shared the ride-hailing coupons with you, but the money actually came from investment institutions such as SoftBank, Tencent Holdings, and Benchmark Capital. They inject funds into loss-making companies to provide services to users at low prices, in order to cultivate users' living habits and shape new ways of life. Of course,