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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

In product business it is often measured over multiple purchases and assumptions are made about the repeat rates and in the enterprise or services world LTV can be based on churn rates, which are notoriously hard to predict in an early-stage business. Poorly calculated LTVs can become BVs (bankruptcy values).

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Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

You need to know all the people I’ve hired or the people I’m about to hire, whether up and down the stack, people in the engineering team, people on the C-suite management team, and what we expect from them. That’s a valuation number and pricing number. And so a lot of it is performance management. David Zhang.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

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. Modano standardizes Excel models to improve comparability and reduce error rates.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

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. Yet many B2B companies don’t have a clue. Philippe Botteri. 4:31 PM.