Posts Related to LTV

Investors implicitly seek answers to a series of questions when evaluating a Startup. I call this the "Hierarchy of Funding Needs", and I believe that Startups have to prove that they have fulfill these Needs in order if they want to be successful at fundraising.

There are several methods to calculate LTV, with differing advantages and disadvantages. This post discuss some of the more popular methods, and the fundamental assumptions that underlie them.

The LTV Equation (or LTV Formula) is one of the most widely used methods of calculating LTV - it's relatively simple and illustrates the main drivers of LTV - but also makes a number of implicit assumptions and so may be unsuitable for modern startups. This post addresses the assumptions behind this method, and discusses when it should be applied or avoided.

CAC and LTV are invaluable metrics to understand the Operations of a Startup; but they are both frequently misunderstood. We use the analogy of Jack and the Beanstalk to outline what matters in these metrics, and why they're critical to your Startup's success

Operational requirements vary between Startups, and it's necessary to understand needs rather than specify prosaic solutions. This is an intro to Operations at Startups, and touches on methodologies to better understand and optimise your Startup.