Gross Margins, Early to Late: What They Do (and Don't) Tell You
a16z Podcast27 Juni 2020

Gross Margins, Early to Late: What They Do (and Don't) Tell You

Gross margins are essentially a company's revenue from products and services minus the costs to deliver those products and services to customers, and it's one of the most important financial metrics a startup can track.

And yet, figuring out what goes into the "cost" for delivering products and services is not as simple as it may sound, particularly for high-growth software businesses that might use emerging business models or be leveraging new technology. Why do gross margins matter? When do they matter during a company's growth? And how do you use them to plan for the future?

In this episode, a16z general partners Martin Casado, who invests in early stage enterprise startups and David George, who leads our growth fund, and Sarah Wang on the growth investing team share their perspectives on how to think about gross margins in both earlier and later stages at a startup. The conversation ranges from the nuances of and strategy for calculating margins with things like cloud costs, freemium users, or implementation costs to the impact margins can have on valuations.

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a16z Podcast: The Rise of Full Stack Startups

a16z Podcast: The Rise of Full Stack Startups

Suppose you develop a new technology that is valuable to some industry. The old approach was to sell or license your technology to the existing companies in that industry. The new approach is to build a complete, end-to-end product or service that bypasses existing companies. Andreessen Horowitz’s Chris Dixon, Balaji Srinivasan and Benedict Evans discuss the reasons behind, and advantages of, going “full stack.”

27 Mars 201418min

a16z Podcast: Searching for Mobile’s Own PageRank

a16z Podcast: Searching for Mobile’s Own PageRank

The mobile experience is still in its 1995 Yahoo phase, a sea of apps and websites without an easy way to find what you want and need on your smartphone. What will be mobile’s version of PageRank, the algorithm that made the web manageable? What is the interaction model and the form - app, card, URL – that will help us find, explore and engage with people, products and services from our mobile devices? Andreessen Horowitz’s Chris Dixon, Benedict Evans and Balaji Srinivasan delve into the options.

24 Mars 201412min

a16z Podcast: Where is the Technology That "Matters?" Right Here

a16z Podcast: Where is the Technology That "Matters?" Right Here

There is a recurring theme that the tech industry is busy cranking out fluffy social apps rather than hardcore technology. Not the case, say Chris Dixon, Benedict Evans and Balaji Srinivasan. Not only are tech entrepreneurs going after the deficiencies in healthcare, transportation, finance, energy - you name it - with new approaches riding on top of sophisticated technologies, what looks like fluff today often wields some serious influence tomorrow.

21 Mars 201414min

a16z Podcast: The State of the Bitcoin Ecosystem, and a Theory on Satoshi

a16z Podcast: The State of the Bitcoin Ecosystem, and a Theory on Satoshi

Andreessen Horowitz's Chris Dixon and Balaji Srinivasan discuss the state of the Bitcoin ecosystem now that the Mt. Gox dust has settled. What's next in crypto-currency, and a theory on Bitcoin creator Satoshi (not Dorian) Nakamoto.

20 Mars 201415min

a16z Podcast: Apple and Google Won the Mobile OS War, But a New War Has Already Begun

a16z Podcast: Apple and Google Won the Mobile OS War, But a New War Has Already Begun

Apple and Google won the mobile OS war, but the next war – to build big businesses on top of Android and iOS – is just beginning. Andreessen Horowitz Partner Benedict Evans untangles what the next phase of mobile means for entrepreneurs, Apple and Google's competitors, and consumers eager for the next great gadget.

13 Mars 201427min

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