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A few days ago I celebrated a friend’s birthday with a large group and realized how hard it is to know who can’t carry a tune when the whole class is singing the same song.
The same goes for B2B SaaS startups, because many of them generally focus on LTV:CAC ratios, which can be a good way to hide poor metrics.
Dividing customer lifetime value by customer acquisition cost provides valuable insights, but how accurate is your historical retention data and how much have you collected?
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Igor Shaversky, a partner at the VC firm WaveUp, said: “Today, investors have reported other efficiency measures that show a more reliable and comprehensive picture of the efficiency of the startup capital.
In this TC+ column, he provides a formula and references to calculate “how long it takes to pay off customer acquisition costs.”
Now that VCs are closing in on due diligence, reducing CAC fees and paying “special attention” to how the Rule of 40 works is proof that your team knows where to go. Investors love that.
“In my experience, some companies can reach a good position in two quarters, but on average it takes a year,” writes Shaversky. “It all depends on the severity of your condition.”
Thank you for reading
Walter Thompson
Editorial Manager, TechCrunch+
@your main actor
How we use data-driven people to dramatically improve the customer experience
Image Credits: Hannah Plonsack (Opens in a new window) / Getty Images
I am constantly amazed at how many startups make it. is not Developing the personality of customers.
Instead of drawing on data from user interactions to create models that represent real customers, many teams substitute their own judgment and guess what people like and don’t like.
VP of Product Gary Sabin says his company “went into the numbers” and “looked at 250 data points” to develop “human-centered services across implementation, customer support and customer success.”
A year later, the company achieved high customer satisfaction ratings and NPS scores. “These people work for us,” Sabin said. “Your customer data guides you to create the most important people in your customer base.”
Sometimes you need to cut the beginner’s school connection
Image Credits: Haje Kamps / TechCrunch
Given how many startups come out of colleges and universities, it makes sense that more academics are rushing into C-suites. But is that necessarily a good thing?
Last week, at TechCrunch Early Stage, Hardware Editor Brian Heiter spoke with SOSV General Partner Paa Wu about collaborating with teams that include professors and students.
“There are some areas where you can do really well to keep members of your founding team in academia,” Wu said.
“We see this all the time in traditional biotech and pharma. But in other types of situations, it can be a drag on the company and a problem for full-time innovators.”
Ask Sophie: My STEM OPT expires in 30 days, what are my options?
Image Credits: Bryce Durbin / TechCrunch
Dear Sophie,
My STEM OPT expires in a month, and my company did not enroll me in this year’s H-1B lottery.
I’m not sure what my options are now. Help!
– Insomnia in Silicon Valley
How startups can produce social content that really resonates
Josh Machiz, Partner at Redpoint, and Rashad Asir, Chief Content Officer at Redpoint, discuss “How to Turn Your Startup into a Social Superstar” at TechCrunch Early Stage on April 20, 2023 in Boston. Image Credits: Haje Jan Kamps / TechCrunch
There’s something painful about watching a company post something on social media in an attempt to go viral or jump on a trend. He always gives me a sad, “How did you do, my countrymen?” Trembling.
Rebecca Szkutak spoke with Redpoint Ventures’ Rashad Asir (Head of Content) and Josh Machiz (Partner) last week to get their thoughts on how young brands can plan for authenticity.
What we’ve learned here is to get it out of the gate, ship – just like a startup – and just see if it really hits, because if you get the passion that it hits, you can invest. More to it,” Machiz said.
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