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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. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

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Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity).

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Is Your Startup Tracking the Right Metrics?

Up and Running

Lifetime value will also get there and you increase your lifetime value by decreasing your churn rate, i.e. the rate at which people churn out of your product or service, but decreasing your churn will take months to catch up and show the bottom line and your absolutely want to decrease your churn.

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How to Write a Business Plan

Up and Running

An online software company might look at churn rates (the percentage of customers that cancel) and new signups. It lists the assets in your company, the liabilities, and your (the owner’s) equity. The last financial statement that most businesses will need to create as part of their business plan is the balance sheet.

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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. But I think that given the demand, he could have held firm on valuation and either given up slightly less equity or taken in slightly more money for the same dilution. That would put the cost of the ties at around 2x $85/24 = $7/mth. Adding these up gives $15/mth.

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9 Things That Take a Pitch From Good To Great

Up and Running

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.

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Recognising good growth

The Equity Kicker

High churn rates. High return rates. This morning I thought I would say more about what that means, starting with characteristics of unsustainable growth: Adding users who are unlikely to engage (e.g. incentivised traffic, users recruited under false pretences). Adding users via channels that will never become economic.