Normally I do not write posts just referencing other posts. But I have to make an exception here because I was really impressed about an article ion techcrunch. It’s titled The Complete Quantitative Guide To Judging Your Startup and it talks about which KPIs investors use to judge your startup – and ultimately to decide whether to invest or not. I think that the title is a little bit misleading (although I’m guilty of mimicking it in my own post). The KPIs discussed in this article are not only relevant for startups. To me they are the absolute basic “must know / must measure” KPIs for every internet based business. If you ever wondered what CAC (Customer acquisition cost) vs. LTV (Life time value) really means and why these two figures are so important, read the article. Every wondered what run rate means? K-factor? Churn? Read the article. Although it sometimes uses different labels for the KPIs than I am used to (“Long-time-value” vs. “Life-time-value”) it beautifully explains the most relevant metrics in plain old English. I work with these metrics every day and surely can say: If you are not familiar with these metrics, do not start a business.
Link is here: