Recent Quora Posts

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I’ve been doing more and more of my writing on Quora, so this blog continues to lag. Here are a few of the most recent/highest read answers that I’ve posted on Quora:

Where can I find examples of investment deal memos written by venture capitalists? I write up an example VC investment memo, including the market opportunity, sales strategy and more.

Healy Jones’s answer to Would you make your company aware if you saw that they accidentally paid you twice your usual paycheck, or keep it a secret? Turns out I thought that I had this situation, and when I brought it up the result was more humorous than anything else!

Healy Jones’s answer to How can being a capital efficient startup help with its exit? My main point: the more the startup raises, the bigger the exit has to be to satisfy the VCs.

Are people too harsh on Box?

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I think people are a little too harsh on Box’s prospects; I tweeted out this link the other day:  “buff.ly/1o70OxS Analyst: Box’s Only Realistic Option Is To Sell”

I realize that the company is burning a lot of cash to get new customers, investing something like $1.3 per each $1 in new revenue – but Box is a SaaS business and that dollar in revenue should come back the next year, and the next, and the next… Even if there is some churn, the NPV is likely to be highly positive.

Furthermore, Box has been aggressively investing in growth. If the company decided to grow more slowly and focus on profitability, I’m willing to be they could quickly start generating cash (or at least get to break even).

I realize the IPO window is closing, unless the markets to a big turn around. If not, we’ll get to see what Box decides to do – keep spending big bucks to grow the top-line, or slow down and get profitable. Either way, I’m not too freaked out about their future. Worst case, won’t someone acquire them?