Version One Ventures

SEPTEMBER 19, 2012

Your business has a high viral co-efficient (or perhaps even a network effect) that lets you amass users cheaply without worrying too much about the monetization per user or spending money on paid acquisition. In addition, churn tends to rise as a company grows. High LTV can usually be found in transactional or subscription businesses.

Churn Rate 168

Churn Rate Viral Acquisition Cofounder 168

Seeing Both Sides

FEBRUARY 9, 2015

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. One of my CEOs pointed out to me at a board meeting last week: “Our average customer acquisition cost (CAC) is irrelevant for the future.

Metrics 20

Metrics Churn Rate Acquisition SEM 20

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

andrewchenblog.com

JANUARY 28, 2010

To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).

CPA 51

CPA Retention Viral Acquisition 51