I am embarrassed at my blogging pace over the past few years. However, when I come across a thought that I think deserves more permanence than Twitter, this blog is still where I turn to.
One of those items just came from my friend Saar Gur, who's a General Partner at CRV. Saar's spent some time analyzing the growth factors in rapidly-growing startups and his thoughts are below.
I think the money slides are 19 and 20. We see so many startups comparing themselves to companies with very different economics underlying their businesses. And, much capital gets wasted, chasing someone else's growth curve that is just not attainable for their business model.
The LTV/CAC analysis needs to be a top-down one, and one that gets iterated as a company moves down its own growth curve. Any hasty conclusion is usually a costly one.