Mar 10, 2016 On Our Blog

How to Talk About Revenue — What VCs Really Look For

Revenue. It’s the most important factor to any business, but it’s also a catch-all word that can mean almost anything. We all want to talk about big revenue numbers, but in the land of REVs all sales are not the same, and understanding what $-related metrics are relevant for your business is essential. Instead of getting lost in semantics, let’s embrace the nuance and define what Revenue /ˈrevəˌn(y)o͞o/ really means. GMV / GTV So ‘revenue’ means any money my company touches, right? Wrong. Many companies facilitate transactions and channel money through their platforms which is NOT Revenue. They may very well be part of a transaction with your consumer, but that doesn’t necessarily justify them as Revenue to your company. Instead, such …