Building a world-class product and a couple of customers who are blown away is all it takes to raise money. Startups should expect a six to 15 million evaluation for a product in the market and 50 to 100 times yearly revenue.
The founder of a successful business discusses how a terrible experience with their initial product caused them to change their formula and ultimately led to their current success, earning 100K in revenue per month with only one employee.
The speaker shares his realization of the potential in sticking with his ideas and focusing on bottom-up SaaS, a type of business software that can go viral, while avoiding the traditional top-down method of selling to CIOs.
As the market recovers and becomes predictable again, investors will go back to their old behaviors, overbidding on high-risk investments. Retreating to quality may stabilize the market, but this comes at the risk of overvaluing the dependable companies.
The speaker cautions against investing based on short time horizons and focusing on the company's popularity instead of its potential for long-term growth and profitability.