VCs give implementation revenue a zero valuation multiple
Pablo Srugo · He raised $20M, hit $3.5M in revenue—& failed. Here are the top 3 lessons he learned. | Ned Phill... · PMF Show · Feb 6, 2025 · at 16:03
Host Pablo Srugo discusses how venture capital investors evaluate top-line revenue that consists mostly of one-off implementation fees.
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“At least from the perspective of VC, it'll get a zero multiple. It literally will get roll count towards where you're at, right? Like, so no, you say I have two million revenue. Million and a half is implementation revenue. As far as I'm concerned, you're at half a million in revenue.”
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