What Drives the Top Line?: Non-Financial Statement Determinants of Sales Revenue in Pre-IPO Venture-Backed Firms
- Topics:
- Incentives and Compensation
- Tags:
- Patent,
- pre-IPO,
- Revenue,
- Sales,
- Sales Force Management,
- Sales Strategy
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Overview: The study presented in this paper explores the role that people, patents, and policies play in generating near-term sales revenue. As data on people, patents and policies are rarely and/or inconsistently disclosed by public companies, VentureOne's surveys of pre-IPO venture-backed firms are used. By means of a Cobb-Douglas-type revenue model, the paper proposes and finds that firms' own one-year-ahead forecasts of sales revenue are larger the higher are their current revenues, the more rapid is the growth in their personnel and patents granted, the more business development, finance, marketing, sales, technical, and 'other' staff they employ, and when they have a formal sales commission plan in place.
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Format: PDF | Size: 235KB | Date: Aug 2005 | Pages: 27
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