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Tren Griffin
@trengriffin
, 3 tweets, 1 min read Read on Twitter
"Everyone loves a good story and investors are no exception to this rule. All successful pitch decks tell a compelling story: company purpose, the big problem they are trying to solve, why now is the right time, and why they are the right team to solve it" google.com/amp/s/techcrun…
Bill Gurley: "Investors are not solely evaluating your company’s story. They are also evaluating your ability to convey that story.” "You want to walk the listener through an argument as to why this is going to be an amazing business." abovethecrowd.com/2015/07/07/in-…
"The process of crafting the story can be a cathartic experience as you lay out things like positioning, business model and pricing assumptions, market focus, and key recruiting priorities." The CEO is the number one salesperson and storyteller (they are a "storyteller-in-chief")
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Tren Griffin
@trengriffin
Always my favorite chart in the S-1, in this case from Pinterest. Note the gross margin in a user generated content business where the suppliers have no pricing power. A famous Zen master once said: "Find enlightenment in low COGS via UGC marketplaces."
Spotify is the other side of the pricing power coin from Pinterest:

"Spotify’s cost of revenue, consisting primarily of royalty payments to record companies, amounted to $2.8 billion or roughly 75 percent of the company’s revenue." google.com/amp/s/www.stat…
Spotify must increase its wholesale transfer pricing power in music via: (1) a better deal with labels, (2) becoming a label itself or (3) sell stuff other than music (e.g., podcasts) with better gross margins. The third choice is more within its contol and attractive to a buyer.
Read 5 tweets
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Tren Griffin
@trengriffin
Quiz: "Qualcomm stock jumped > 23% on the settlement Tuesday and another 12% Wednesday."

Does QCOM's significant ROIC/cost of capital spread” explain the magnitude the jump in the stock price?

Is this a double edge sword in that a reduction in growth would be as impactful?
Additional Quiz Questions: Was my picking MoviePass as a case study on my 26IQ blog intended to starkly show that not all revenue growth creates value? google.com/amp/s/variety.…

Can the adverse financial impact of customer churn be nonlinear, and if so, why?
"It’s easy to grow sales and acquire subscribers with a negative variable margin." @d_mccar

"It is critical to bundle all future variable costs of supporting the customer in order to fairly estimate the future contribution." Bill Gurley
Read 3 tweets
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Tren Griffin
@trengriffin
1/ "In a business with a large spread between return on invested capital and cost of capital, rapid growth adds lots of value. For large negative spreads, growth subtracts a lot of value. Whether growth is good or bad is contingent on incremental return." d2wsh2n0xua73e.cloudfront.net/wp-content/upl…
2/ Miller:Modigliani: "The essence of ‘growth' is not expansion, but the existence of opportunities to invest significant quantities of funds at > the cost of capital."

Buffett: "Growth creates value only when a business can invest at incremental returns > its cost of capital.
3/ Mauboussin: "Growth is an amplifier, and it’s impact grows as the ROIC - cost of capital spread widens (above or below zero). At zero spread, growth has no impact.
It’s not margin that matters but ROIC (these are related, of course)."
Read 3 tweets

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Dave Guarino
@allafarce
I tend to be very skeptical of tool primacy/platform thinking, but I've come to the conclusion that a very specific toolset would be useful in government:

a rapid prototyping tech stack, pre-cleared for security, that allows for build-to-learn service design experiments
Let me explain: I believe very much in the whole lean startup idea of "the most learning comes from serving 10 users with a real thing"

And this is an area where the govt bottleneck is not deep systems stuff (eg org behavior) but literally no whitelisted prototyping tools.
What would this look like:
- PaaS style hosting meeting security standards (eg @clouddotgov from @18f)
- Prototyping tools that minimally-technical users can configure to create full user flows (eg @usds us-forms kit) — think Typeform, Twilio Studio kind of stuff
Read 10 tweets
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Jason Fry
@jasoncfry
Good morning! The Last Jedi novelization comes out in PB Tuesday. I'll offer some thoughts from the writing process in roughly chronological order. Hopefully it will be of some interest/answer some of the Qs folks had. (For which thank you.) amzn.to/2zrkytY
OK, that prologue. It's *NOT* a vision of a better life for Luke. It's a warning from the Force, which has used a dream to slip through Luke's defenses. In both dream and reality, Luke's life is seemingly tranquil but evil is ascendant everywhere else in the galaxy.
Why start there? I wanted to open with Luke and step back in time; to be in Luke's head in a way that would be harder later, when we're exploring Rey's story and he's a mystery she's trying to solve; and to introduce the idea of the Force as almost a character in its own right.
Read 169 tweets
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Barb Chamberlain
@barbchamberlain
Kicking off #WalkBikePlaces with an infrastructure tour on @BlueBikesNOLA. Several under way now; I'm on the one that looks at public art, placemaking. #bikeNOLA
First stop: Jackson Square, National Historic Site, named for Andrew J. Led battle that saved NOLA in 1812 but owned enslaved people. Should his statue come down? #WalkBikePlaces
Beautiful murals! Families of Plessy and Ferguson reconciled with art in celebration. Studio BE right across the street--big studio space in covered warehouse. @BlueBikesNOLA station right here at park.
Read 144 tweets
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Jordan Valentine
@mizvalentine
"What is the problem we're trying to solve" is the only question that really interests me in software. I think the answer to that question in PaaS CMS- land is, "We're facilitating communication regardless of the technical skill of the communicator." But what does that mean?
Partly, I think it means friction-free admin UX. I've worked w. 10ish CMSs and all their content UIs suck to a greater or lesser extent. They're often a better fit for devs than communicators. Too many options, too deep, no consideration of the processes of the actual users.
A good UI needs guardrails; you can pack a lot of configurability in it without being overwhelming if you really, truly understand how your users work and how they construct content. Don't tell them what to do, observe what they're already doing and provide a smart tool to help.
Read 8 tweets
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sᴛᴀʀᴛᴜᴘ ᴅᴀᴇᴍᴏɴ
@startupdaemon
1) There’s a lot of BS about @nntaleb’s Black Swan, antifragility & skin in da game. Let’s take the gloves off and get into trouble.
2) When the Swan flew out, it was immediately butchered by imbeciles not understanding that you can’t predict the unpredictable.

That is the point – and an IQ filter NNT himself proly did not expect.
3) In any complex domain – life! – the Blackest Swan is always skulking around the corner. You know it’s coming, but you don’t know what where when. You can't tame what you've never even conceived of.

Can you get it?
Read 46 tweets
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Ugo Obi-Chukwu
@ugodre
Hello everyone, welcome to @Nairametrics Corporate News Roundup for the week ended December 9, 2017.

This roundup is made possible by @BluechipTechNG

#NMCorporatenews

Thread Starts here
As usual, do retweet the first tweet of this thread so others on your timeline don't miss out.

Special thanks to everyone who always retweet out tweets, it helps us serve you better.
Quite a busy week last week in the corporate world, considering that we are close to the end of the year.

As usual, this is bound to be a loaded episode so stay locked.

We will try to round this up on time too.
Read 69 tweets

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