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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).

Metrics 150
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What I’ve Learned About Venture Funding

Both Sides of the Table

I think I’m at the expert stage of venture capital and I mean in the Wardley sense. 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. What do I know about venture? We’ll see. I’m not totally sure.

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

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Modano standardizes Excel models to improve comparability and reduce error rates. Fund/SPV management services specifically are provided by Assure Services and Proteus Capital.

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Recurring Revenue is Magic

Seeing Both Sides

million in one year, the year we went public at a billion dollar valuation (ok, it was 1996; everyone went public in 1996 with a billion dollar valuation), and then $61 million the following year. In a SaaS or subscription software business, you can predict your churn rate and new business closings to determine your growth rate.

Revenue 54
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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. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). Venture Capital. (3).