As a VC, I have a simple motive for investing: get out for way more than I paid. My fund only makes money when we sell our companies. So, it’s all about exits. You will often hear that the best companies are bought not sold. That’s bullshit. Do customers just show up and buy your [...]
I’m guessing that most everyone who reads this blog uses Dropbox. The four year old company has over 50M users and adds a new user every second! It can be dangerous to use such run away successes as lessons when building your own startup. After all, most startups never achieve this level of success. Still, [...]
So far in the SaaS Math series, we have looked at why investors love SaaS, definitions of the key terms in SaaS math and last week we looked at user acquisition math. This week we’re talking about activation, retention and its polar opposite – churn. As you will see, churn and retention are the most [...]
Before we start going deep into SaaS Math, it’s important to level set on terminology. So without further ado, here are the key terms used. If you think I have missed any, please let me know. AARRR: A pirate war cry or more importantly, an acronym coined by Dave McClure to summarize the flow of [...]