It’s a Source of Cash. The most obvious reason one-time revenue is valuable is that it’s a source of cash to fund overhead. While a VC or acquirer may not ascribe a multiple to that revenue stream, they’ll look at it as “financing” for the core business. While the business is still burning money, one-time revenue is as important as recurring revenue as a source of cash.
Even though it’s not as attractive as recurring revenue, don’t forsake onetime revenue. For the reasons above, it can be every bit as important as recurring revenue.
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