article thumbnail

Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

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
article thumbnail

Your LTV Math is Wrong

Seeing Both Sides

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%?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Write a Business Plan

Up and Running

For example, if you are producing a medical device, you will have milestones associated with clinical testing and government approval processes. An online software company might look at churn rates (the percentage of customers that cancel) and new signups. Start with a quick review of your milestones.

article thumbnail

Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

Government grants – Credit cards / debt. Ideally you can pay them based + equity so that you’ll get their attention and focus on the project. There’s no formula however I do know … the more you build before you need to hire / partner, the more equity you can keep. How can I lower my apps churn rate? Youre the man.