Startup Funding Espresso -- Characteristics of Revenue

Characteristics of Revenue

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Not all revenue is the same.

There are several characteristics that define the quality of revenue.

Here’s a list to consider:

Predictability -- if the revenue is recurring it has higher predictability and thus a greater value.

Concentration -- the more sources you have the stronger the revenue as you avoid over-concentration of customers.

Diversity -- the greater the number of use cases for the product drives diversity which provides greater value as your revenue is not at risk of changes in the market.

Contracts -- having contracts gives greater value to the revenue as it strengthens the predictability of it.

Customer solvency-- revenue from a customer that is profitable has greater value as it increases the chance that it will continue.

Look for these characteristics to understand the quality of your revenue.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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