Kalyanaraman: Code Mantra currently tracks toward a 3x to 4x outcome
Sanjeev Kalyanaraman · Transform your business from a EBITA multiple of 4 to a revenue multiple of 5+ · Jun 20, 2023 · at 15:44
Sanjeev Kalyanaraman, founder of Code Mantra, discusses the company's valuation expectations and fundraising considerations.
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“Look, we are in the three to four X game right now, candidly in terms of outcomes. We're sort of contemplating, is that good enough for us, or should we get more capital and grow our company?”
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More from Sanjeev Kalyanaraman
Kalyanaraman: Reaching $2M ARR does not prove a repeatable sales motion
“If you're still at two million ARR, trust me, you haven't really created a repeatable sales motion. You've created some validation. It ain't repeatable sales motion yet. You've just had your founders sell stuff, right?”
Kalyanaraman: Early validation stage startups should achieve 8 to 10 LTV to CAC
“Look, if you are in the validation stage, in my humble opinion, it's totally okay to have an LTV to CAC of eight or 10. You better have that LTV to CAC, because you're still selling through founders. You're still trying to create that repeatable sales motion.”
Kalyanaraman: Delay venture capital as long as possible using professional services
“My strongest piece of advice, try to delay venture capital or any kind of capital raise money as far as you can. Sometimes it's hard. One way to mitigate that temporarily is, is by selling PS, right?”
Kalyanaraman: Expensive debt capital can be worse than equity
“Our debt capital, we have both cheap capital and very expensive debt capital. At some point, the expensive debt capital is worse than equity.”
Kalyanaraman: High market CAGR is required for a repeatable sales motion
“Somewhere along the way, you will hit that hurdle around repeatable sales motion if you don't have a large CAGR.”
Kalyanaraman: Early-stage companies must spend at least 20% on R&D
“You still got to spend on R&D, particularly in your early stages. You got to spend at least twenty-plus percent on R&D. Right? At least you've got to figure out a way to do that. That's very, very important, or else you'll get run over.”