Accelerators force artificial MRR growth leading to post-demo churn
Anders Fredriksson · EP 564: Proleads Passes 100 Customers, $75 ARPU Helping You Find Better Leads with CEO Anders Fredriksson · Feb 8, 2017 · at 12:36
Anders Fredriksson, CEO of ProLeads, reflects on lessons learned after going through the 500 Startups accelerator program.
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“At the accelerator, it's pretty common that you need to grow your MRR sort of by any means necessary. So we started doing that and we were like, we hit our weekly and monthly goals and we were growing our MRR like crazy. Problem was that after sort of demo day, we saw this, what we're now, or what I'm calling a post demo day churn. So you do all these things to sell to anybody that, you know, breathes essentially. So usually it's quite common that after demo day, people see a lot of churn from those customers that you just sold to get your MRR up.”
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