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How to Optimize SaaS Development Costs

Up and Running

Improper requirement analysis can leave entrepreneurs suffering longer project schedules, higher costs, and producing poorer quality products. They were able to take their market valuation to $1.0 It may also increase the churn rate of your customers, who sign up only to realize the product is not what they’re expecting.

Cost 158
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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150
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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

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. So I spend an inordinate amount of time with entrepreneurs focused on payback. LTV is imprecise.

Metrics 150
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My Thoughts on the Current Market: on 20-Minute VC

Both Sides of the Table

We discussed why in Q4 you will see large renegotiations of SaaS contracts and increased churn rates. A seed deal hasn’t already been “priced up” to a range where a new investor might be concerned about the valuation relative to performance. Optimize for a 1 not a 0 more than exact valuations now. Raise when you can.

Marketing 263
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Shark Tank Season 4 week 10 breakdown

Lightspeed Venture Partners

With a 15% churn rate, that suggests about $7 in lifetime value. The next two entrepreneurs run a wine tasting cruise business. Cuban loved both the idea and the entrepreneur. Interestingly, this new deal actually lowered the pre money valuation for the company. I would speculate more like $40 at scale. Corks Away.

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What I’ve Learned About Venture Funding

Both Sides of the Table

But if you don’t – now you have many cynical VCs lining up critiquing your CAC/LTV ratios, your churn rates, your poor performing cohorts. The funny thing about “too much money” is that it doesn’t just come from entrepreneurs. ” I’m not so sure. We’ll see.

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

David Teten

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. Chris Dixon, Partner, A16Z, observes , “Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. 2) Market . 7) Negotiate .