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The only 2 ways to build a $100 million business

Version One Ventures

Your business has a high viral co-efficient (or perhaps even a network effect) that lets you amass users cheaply without worrying too much about the monetization per user or spending money on paid acquisition. High LTV can usually be found in transactional or subscription businesses.

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Startup Benchmarks

VC Cafe

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 churn rate below the category average? What should our MRR growth be? Consumer apps and services.

B2C 141
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Getting Your Series A Mojo Back

Both Sides of the Table

Your churn rates 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.” But building a successful startup is hard. And back home when you land and come into the office on Monday your staff still knows the truth. Often it doesn’t.

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Acquire New Users by Adding Growth Hacking to your Marketing Strategy

ConversionXL

Neither would have achieved virality had customers not received something tangible for their efforts. In the retention phase, measure these performance metrics: Retention rate vs. churn rate Customer churn Net Promoter Score Email open rates Email click-through rate.

Retention 113
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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

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 churn rates, and team social scores. 9) Accelerate portfolio company value.

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The Superbowl ad test

Startup Lessons Learned

But notice what’s not listed: messages sent per person, churn rates of active users, or activation rate of new user. Is the company growing because of an amazing viral loop paired with a strong engagement loop? Is the company growing because of an amazing viral loop paired with a strong engagement loop?

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The Lean Analytics Cycle: Metrics > Hypothesis > Experiment > Act

Occam's Razor

Perhaps it's an increase in your conversion rate; Or a higher number of visitors who sign up; Or a greater number of people who share content with one another; Or a lower monthly churn rate for users of your application; Maybe it's even something as simple as getting more people into your restaurant.

Metrics 157