Check out what some of the best VC's were saying about...

- Wix
- Shopify
- Twitch
- Twilio
- PagerDuty
- Fiverr
- Pinterest
- LinkedIn

...when they were still small companies.

[THREAD] 👇🏽

Thanks for sharing @BessemerVP
bvp.com/memos
1/ Wix pt. 1

Wix was a customizable MySpace. Funny to think how things change so quickly.

bvp.com/memos/wix
2/ Wix pt. 2

Look at this user interface! Wix has come so far.

Goes to show you that pace of innovation matters more than where a company is in the present.
3/ Shopify pt. 1

So interesting that replacing Tobi was even in the realm of possibility seeing how well he has performed.

bvp.com/memos/shopify
4/ Shopify pt. 2

The company has been focused on organic, word-of-mouth growth since day 1.
5/ Shopify pt. 3

$400 million exit rate in the best-case scenario. Off just a little bit 😂

I know these projections are so difficult but fascinating to see how people thought about the opportunity without hindsight.
6/ Twitch pt. 1

Never thought about it like this.

Raw materials were the streams and Twitch was acting as a marketplace to get those streams monetized.

bvp.com/memos/twitch
7/ Twitch pt. 2

Great insights into the value props of Twitch.

They are able to take a high rake because streamers view the money as a cherry on top, they aren't entitled to it.

Also, Twitch is aligned with publishers because it is essentially free marketing for games.
8/ Twilio pt. 1

"While growth has not been explosive..."

- it's still growing faster than 40% after all these years

And check out that valuation.

- $800k for its seed

bvp.com/memos/twilio
9/ Twilio pt. 2

The company hadn't even rolled out SMS yet. It was only a voice application.
10/ Twilio pt. 3

Twilio was on the verge of landing Google. Apparently, Google picked it over its internal Voice team.
11/ PagerDuty pt. 1

Those numbers are a thing of beauty.

137% MRR growth

bvp.com/memos/pagerduty
12/ PagerDuty pt. 2

Teams were previously just using Google Docs to record incident reports.
13/ Fiverr pt. 1

I finally understand why it's called "Five"rr 😂

bvp.com/memos/fiverr
14/ Fiverr pt. 2

Great origin story. Always cool to see a company born out of a founder's frustration
15/ Pinterest pt. 1

Pinterest first started out as a product catalog for iPhone apps.

Pinterest was a pivot.

[Forgot to mention this but so was Twitch. Gaming was not the original focus.]

bvp.com/memos/pinterest
16/ Pinterest pt. 2

"Very expensive..."

Last time I check, Pinterest's market cap was $22 billion
17/ Pinterest pt. 3

The company didn't have an established business model yet. Interesting how the affiliate model seemed more obvious than the ad-driven model.
18/ LinkedIn pt. 1

The company was pretty efficient from the beginning.

bvp.com/memos/linkedin
19/ LinkedIn pt. 2

Very cool to see how user growth was scaling. Took 477 days to get to 1 million but then only 77 days to get from 7 to 8 million.
20/ LinkedIn pt. 3

LinkedIn still has a lot of business model optionality. From advertising to subscriptions to vertical offerings, it's cool to see what growth was like in the early days.
End/

So cool to see how Bessemer's investors thought about analyzing these companies when they were still very small.

Thanks again for releasing these @BessemerVP!

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More from @investing_city

24 Aug
1/

Some notes on Unity's S-1

• 142% expansion rate last quarter
• 53% of top 1,000 mobile games were built on Unity
• 1.5 million monthly active creators

Two main revenue segments:
1. Create: engine for making & deploying content
2. Operate: content monetization

[THREAD]
2/

Last 5 quarters of YoY revenue growth:
45%
38%
36%
35%
42%

Last 5 quarters of EBIT margins:
-25%
-32%
-31%
-16%
-13%

Last 5 quarters of gross margins:
78%
80%
81%
81%
78%
3/

Last 5 quarters of customers who spent > $100k:
515
553
600
668
716

Added 48 new enterprise customers last quarter (Q2). The year before that, it only added 9. Customer growth has been accelerating.

YoY customer additions:
101
111
116
162
201
Read 10 tweets
21 Aug
Software terms are confusing right?!

I'll try my best to explain these concepts:

- Bookings
- Billings
- Revenue
- ARR
- DBNER
- DBGRR
- DBNRR
- Deferred Revenue
- RPO

[THREAD]
1/ Bookings

This is usually synonymous with total contract value (TCV).

Let's say a customer commits to an annual contract of $24,000 at the beginning of the year. Boom, that's $24k in bookings.
2/ Billings

The difference between billings & bookings is payment terms.

Using the same example, if the customer couldn't pay everything upfront, your sales rep allows them to pay half upfront, then the other half 6 months later.

January billings: $12k
July billings: $12k
Read 18 tweets
20 Aug
Some notes on the book: Quality Investing

[THREAD]
1/

3 characteristics of quality

- Predictable cash generation
- High returns on capital
- Attractive growth opportunities
2/

Ways to return capital

- Capex for growth
- S&M
- R&D
- M&A
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Read 15 tweets
6 Aug
1/8

Took on two interns this summer.

They just finished 15 weeks of work so I thought I'd share the experience.

There's some good stuff in here! 😁

Phase 1 - Training (2 weeks)
Phase 2 - Context Building (5 weeks)
Phase 3 - Breakdowns (4 weeks)
Phase 4 - Deep Dives (4 weeks)
3/8

Phase 2 - Context Building

This was the longest phase. The goal was to go through as many companies as possible to build a mental (and physical) database.

Without context, how do you know if 20x EBIT is good or bad for 10% growth? You can't -- it's all about context.
Read 8 tweets
30 Jul
1/5

My notes from the Shopify call:

"I cannot recall a time in our history when we have shipped so many features in such a short period of time" - COO

"Over 150 million e-mails have now been sent through e-mail campaigns since Shopify Email launch in Q1" - COO
2/5

Why sub growth was low:

"While growth in the quarter was impacted by the 90-day free trial on standard plans offered from March 21st through May 31st, MRR ended the quarter higher than in Q1, benefiting from the highest ever number of merchants joining Shopify Plus." - CFO
3/5

WFH:

"This means that most of our employees will work remotely on a permanent basis and leverage our office spaces when it makes sense. This also represents an opportunity to open up and further diversify our talent pool, unconstrained by physical location." - CFO
Read 5 tweets
15 Jul
Broke down a "10k in 10 tweets" for 10 days in a row

1. Square
2. Match
3. Plug Power
4. Carvana
5. Constellation Brands
6. Teladoc
7. Autodesk
8. Wayfair
9. Kinsale Capital
10. Enphase

Enjoy this meta-[THREAD]
Read 13 tweets

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