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Geek n Rolla: WReeve Bootstrapping, Scaling and Cashflow

  1. William Reeve Serial entrepreneur and investor Apr 2009 TechCrunch Geek’n’Rolla Bootstrapping, Scaling and Cashflow
  2. About me More details: see or
  3. A brief history of LOVEFiLM (1)
  4. A brief history of LOVEFiLM (2) £££ subs
  5. Three questions this poses 1: How boot-strapping beat cash 2: How cashflow beat money 3: How to scale
  6. Bootstrapping in action SS vs VI Paying Subs +57% Trials DVDs rented Revenues +55% Cost of Sales Gross Profit Margin Free trial cost Marketing costs -2% Contribution to Overheads Overheads -38% E(loss) BITDA -60% DVD CapEx Cash Burn -49%
  7. How not do to it
  8. How we were doing it 9 months later
  9. How cashflow beat money
  10. Our original thinking re cashflows
  11. The reality: pro-forma cash flow per net new customer
  12. We obtained £4.5m of funding by managing our cash conversion cycle + +
  13. How to scale