Both Sides of the Table

MAY 19, 2018

If a VC meets with 40 eCommerce companies and has the data room on all of them (downloaded on to his or her system) then when they DO finally dig in on an investment opportunity they can compare information such as CACs, LTVs, churn rates, margins, etc. against a broad range of similar companies.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Up and Running

AUGUST 21, 2014

What a lot of companies or startups don’t realize is when you put up forecast together, it’s difficult if you’re a startup. If you look at something like Constant Contact with a 2% churn rate, their customers are going to stick around something around 36 months. Hopefully, that helps answer that question.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Up and Running

MAY 1, 2014

Your business plan isn’t complete without a financial forecast. An online software company might look at churn rates (the percentage of customers that cancel) and new signups. Three-year projections are typically adequate, but some investors will request a five-year forecast. Sales Forecast. Read more ».

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Up and Running

FEBRUARY 12, 2019

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones , key hires, and so on. percent average conversion rate. 5 percent monthly churn rate.

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

Up and Running

JANUARY 24, 2014

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones, key hires, etc. 0.22% average conversion rate. 5% monthly churn rate. 5% monthly churn rate.

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

Seeing Both Sides

OCTOBER 24, 2015

Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%?

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20