LTV To CAC

“LTV to CAC is usually not enough. You want to probably look at like LTV gross profit, specifically if you're, you have token cost because you're, the biggest cost item is, is usage at the end of the day.”

“When you go from consumer to B to B, the number one mega challenge that you must master is called LTV to CAC. Yes, you can make that argument on consumer, but when you have a sales funnel that starts with, I'm going to talk to customers and I'm going, I have t…”

“I think three to one LTV to CAC seems to be kind of a sweet spot. I, that's kind of sometimes aspirational. A few of our portfolio companies have seen six to one, which is, I think outstanding. But that's the general sort of benchmark that we look for.”

“LTV to CAC. Eh, not that important to us. LTV can be gamed. It's hard to know. Sometimes you don't have enough history or data.”

“We have a few different products and putting them in different ways, but if all of them can hit like a four, four or five to one, man, it's just, that's great. That's our target.”

“I've never been as big of a fan of LTV to CAC as a measure. Cause I feel like it'd be too long term. You can have high upfront costs that sort of, it takes you a really long time to earn back. You know, when we were bootstrapping, we always thought about the c…”

“Look, if you are in the validation stage, in my humble opinion, it's totally okay to have an LTV to CAC of eight or 10. You better have that LTV to CAC, because you're still selling through founders. You're still trying to create that repeatable sales motion.”

“The concern I have on CACs is they typically go up in my experience as you try to scale the acquisition. And, you know, part of that could be competitive dynamics. If you're paying, you know, your, the 10 mattress in a box customers trying to buy the, find the…”

“Thinking about something like payback period is a much better measure of paid marketing performance than LTV to CAC because the speed at which you get enough money back to then go acquire another customer has much more bearing on how fast your business can gro…”

“The two most important ones are CAC payback period in months, and three year LTV to CAC.”

“I mean, we see in, look, I mean, we see in LTV to CAC over, over three, which is good in the enterprise space.”

“Going into the Series A, you have to have enough momentum and some early economic ratios, LTV to CAC, for example, to prove that there's a market for your product. And so the Series A investors want to talk to a lot more customers and validate that this thing …”

“So LTV to CAC is greater than three. Our CAC payback is within 16 months.”

“We see in LTV to CAC over, over three, which is good in the enterprise space.”

“I always see this number of LTV to CAC of three thrown around and as you know, would definitely be much higher than that historically because we've focused on content.”

“Well, well, our LTV to CAC is like 20 to one.”

“The CAC is lower in SMB, but then also, you know, retention is also lower. And so the LTV to CAC is actually about the same across all segments.”

“LTV to CAC ratio that modern investors look for is, A, the payback period, and B, the magic number. It has to be three O and more. And so, we're tracking at that number plus.”

“We do include everything, and we don't spend any money on SEM, so our LTV to CAC is, you know, three and a half right now for what's in August.”

“What you find as companies mature is that you get diminishing marginal returns, which means that, you know, as you add more customers or your rate of new customer growth increases then the cost to acquire also increases as well. So we see convergence. Of LTV t…”