VC Cafe

NOVEMBER 2, 2019

Forecasting is sometimes done by dragging the mouse based on many assumptions, because it’s hard to predict the future. 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?

B2C 141

B2C Technical Review Startup Retention 141

Up and Running

JANUARY 24, 2014

What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales? 100,000 unique visits/month to our network of online sites. 0.22% average conversion rate. 5% monthly churn rate.

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

Up and Running

FEBRUARY 12, 2019

What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales ? 100,000 unique visits/month to our network of online sites. percent average conversion rate. 5 percent monthly churn rate.

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

Up and Running

JULY 27, 2016

I’ve talked before about the metrics you need to know and track when you are running a subscription business, but there are really only three things you can do to move the needle of growth: reduce cancellations (churn rate), increase average revenue per user (ARPU), and increase the number of people who signup. Reduce churn.

Revenue 60

Revenue Churn Rate Metrics Analytics 60

Seeing Both Sides

JULY 21, 2014

Your forecasting process is much more accurate. In a SaaS or subscription software business, you can predict your churn rate and new business closings to determine your growth rate. When you have a recurring revenue business model, you rarely miss your monthly or quarterly numbers by more than 10-20%.

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Seeing Both Sides

OCTOBER 24, 2015

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%?

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20