What are the key metrics I should consider when evaluating a tech startup?
Key metrics include customer acquisition cost (CAC), lifetime value (LTV), monthly recurring revenue (MRR), and churn rate.
How do I calculate customer acquisition cost?
CAC is calculated by dividing the total cost of sales and marketing by the number of new customers acquired in a specific period.
What does a good churn rate look like for a tech startup?
A good churn rate typically ranges from 5% to 7% annually for SaaS startups, but it can vary by industry.
Can you explain the importance of monthly recurring revenue?
MRR is crucial as it provides a predictable revenue stream, helping startups forecast growth and manage cash flow.
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