Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition. The first input is CAC.

Metrics 150

Metrics Cost Acquisition Startup 150

Both Sides of the Table

MARCH 11, 2011

Not because they didn’t want to do Pay-per-click (they are huge buyers of SEM) but because they didn’t want other people to know what they paid for clicks! IdeaLab has created 75 companies, leading to 8 IPOs, 35 or so acquisitions and more than 5 companies worth in excess of $1 billion. Anyway, we discussed so much more.

Product 350

Product Tuvalu Dilution Incubator 350

Cracking the Code

OCTOBER 10, 2008

The top performing SaaS companies typically achieve annual customer renewal rates above 90% - with most of the churn due to death (bankruptcies) or marriage (acquisitions) - and over 100% renewals on a dollar value basis due to up-sells into this installed base. upfront acquisition cost, making the CLTV equal to $2.5-$0.7= means a $0.7

Software Review 48

Software Review North America Europe Metrics 48