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Recurring revenues: Oil or glue?

Berkonomics

Some types of businesses generate more and more recurring revenues over time, often growing to a size where recurring revenues pay all of the overhead of the company – an enviable position. There is a phenomenon I have observed time after time with mature companies receiving over 75% of their revenues from recurring sources.

Sales 296
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TikTok Hopes Startups Can Breathe Life Into Its Shopping Struggles

Tech.Co

Currently, TikTok relies heavily on digital advertising to bring in revenue, although this has not been as reliable of a profit stream in recent months as it has previously and is forcing the company to look for alternative ways to make money. A Mountain to Climb.

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Your fork in the road? Depending upon others.

Berkonomics

And I found from experience – after investing in many other entrepreneurial businesses over the years – that this stage typically occurs first at about twenty employees or $3 million in net revenues (or gross profit) for most any kind of company. In future weeks, we will dissect this $3 million-dollar phenomenon separately.

.Net 156
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Selling your business? Find the emotional buyer

Berkonomics

The object of a financial purchase is to negotiate a bargain, capable of payoff through operating profits or growth over time, or even of immediate profit from arbitrage – knowing of a purchaser that is willing to pay more for your company if repackaged, or even with no changes at all. This rare buyer needs your company.

Pricing 600
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Pop culture stimulates the evolution of the LA tech scene

TechCrunch LA

It wasn’t so long ago that venture capital was a suburban California phenomenon. Los Angeles didn’t have much in terms of a real tech scene — and even San Francisco only had a few VCs or tech companies. That great migration of companies and activity touches upon what is now… Read More.

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Snapchat's Evan Spiegel: Fake News Is Social Media's Fault

socalTECH

CEO Evan Spiegel blames social media --implying, indirectly, Facebook--for the phenomenon of "fake news", saying that personalized newsfeeds have revolutionized the way people share and consume content but at a "huge cost to facts, our minds and the entire media industry." In an editorial, posted this morning, Snap, Inc. READ MORE>>.

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HMBradley raises $18.25 million planting a flag as LA’s entrant into the challenger bank business

TechCrunch LA

The company offers up to 3% interest on its savings accounts, much higher than most banks these days, and it’s that pitch that has won over consumers and investors alike, according to the company’s co-founder and chief executive, Zach Bruhnke. “It was a very different kind of fundraise for us. . on their deposits.