Two Years of the Real Numbers of a Startup: Redfin

05Oct07

The CEO of Redfin shares his financial model and the real numbers for the last 2 years. Very interesting data indeed, even if you just read it for the data points.

The estimates were deliberately made to look worst so that they can utter the words “we beat projections” when it comes to funding later rounds. Interestingly though, I guess everybody does that, and I guess all the VC also know that this is done, so how much of this is already taken into account by both sides?

Also wouldn’t creating the worst financial model also lower your valuation for the current round where you would probably give up a sizable chunk of equity? Interesting how this is balanced out… take a higher valuation now, meet expection down the line and probably still get the same funding with more equity in the founders hand, or lower expectation, give up more equity now and make it easier to get a 2nd round, but by then you have given up more equity.

Financial Models for Underachievers: Two Years of the Real Numbers of a Startup



No Responses Yet to “Two Years of the Real Numbers of a Startup: Redfin”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: