LTV

“Despite large amounts of capital in the system, there does become a point where It becomes reasonably uneconomical for other people to compete from a capital perspective. I don't think that there's ever been a business where the sole defensible point is capita…”

“And those things don't really mean anything at one million of ARR, but it's the practice of starting to measure those things that helps you create the discipline to really understand how to run your business, In a way that will become long-term profitable.”

“In general, I would agree with you that both the data around CAC and LTV is far too early at the pre-seed stage. I think until you've started to kind of push more than seven figures of scale between both the CAC and LTV metrics, you really don't know those num…”

“The growth investors, what they do is they talk about CAC and LTV and unit economics. Look, that stuff is super valuable. It's just not valuable in those first 18 to 24 months when the entrepreneur is trying to turn that idea into something real.”

“So in my opinion, at least, seed stage is definitely too early to start measuring CAC and LTV, but they're still super important to keep in mind.”

“I think all these numbers matter, but they matter at scale. They just don't matter early on.”

“The assumption that we can have eight to nine years as an LTV in the first two years of a company, I get it more if you're Visa, where we've got 50 years of data, but like for a startup, I just think LTV is bullshit. You've got no freaking idea.”

“If you think about standard SaaS metrics like LTV, CAC ARR, whatever, they never mention cash. Like, it's not about cash. It's like more about around accounting and predictability, but we always try to optimize for cash.”

“But the reality is it's like false precision. Like you're not going to know where your LTV is if you've been in business for a year or six months or whatever it might be. So I wouldn't over index on that false precision.”

“All the upsells gonna add around 20% to the LTV.”

“Unless you've been in the business for five years plus, You do not know your LTV. Period.”