David George is a general partner at Andreessen Horowitz.
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. 
For any business, there are three core financial statements – the income or P&L statement, the balance sheet, and the cash flow statement. While these statements can show investors and the board how the business is doing, they can do more than just keep score on your business – they are one of the best tools you have to run it.In this podcast, a16z General Partner and managing partner Jeff Jordan, who previously ran several businesses and took a company public right after the 2008 financial crisis; David George, who runs the a16z late-stage venture operation; and former CFO Caroline Moon, who leads the a16z financial operations team, break down what the numbers do (and don’t) tell you, both in financial statements and KPIs. They cover the most common mistakes people make when it comes to understanding their numbers; how investors look at a company's P&L; what metrics they use to determine if a business is healthy; and how founders can use the numbers to navigate in times of crisis.
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Creator Details

Location
Palo Alto (El Carrizal), Coahuila de Zaragoza, Mexico
Episode Count
2
Podcast Count
1
Total Airtime
1 hour, 3 minutes
PCID
Podchaser Creator ID logo 566537