VC Cafe

FEBRUARY 21, 2023

A high retention rate indicates that customers find the product or service valuable and are likely to continue using it in the future. Churn : The percentage of customers who stop using a product or service after a certain period of time, typically measured over weeks, months, or years. The benchmarks are based on the US market.

Retention 109

Retention Conversion Churn Rate B2C 109

YoungUpstarts

SEPTEMBER 7, 2014

The payback period is the amount of time it takes to recoup your acquisition cost. Lifetime Value/Cost of Acquisition. The cost of acquisition is the cost to acquire a new customer and includes marketing costs, sales salaries, and all variable expenses related to getting that customer to make a purchase. Payback Period.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

Both Sides of the Table

APRIL 26, 2016

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

Metrics 150

Metrics Cost Acquisition Startup 150

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Fund/SPV management services specifically are provided by Assure Services and Proteus Capital. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

MARCH 11, 2015

That moves into the customer acquisition strategy. This includes again another acronym I’m going to share, CAC, the cost to acquire a customer, the customer acquisition cost. Are you bringing on some investment capital? Are you doing an acquisition? The customer acquisition cost that I talked about.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Cracking the Code

OCTOBER 10, 2008

This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. Cashflow is the other key metric. Philippe Botteri. Bessemer SaaS Law #2.

Software Review 48

Software Review North America Europe Metrics 48