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Seth responded to an entrepreneur’s request for financing and the entrepreneur wrote back a nastygram. Your churnrates are too high. They qualify every initiative with, “well this didn’t prove viral adoption last time so I don’t expect a silver bullet this time.” Nearly every one.
One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churnrate below the category average? What should our MRR growth be? Consumer apps and services.
This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churnrates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. Popular Media: the key to viral marketing. Philippe Botteri. Software 2.0:
Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churnrates, and team social scores. 9) Accelerate portfolio company value.
For this type of model, I would like to understand how the number of inbounds is scaling with the activities and how much virality there is in the model as the word spreads out in the community SMB door to door sales (e.g., This model relies on grass root marketing of the targeted community, combined with smart online tactics (e.g.,
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