What are the key metrics VCs look for?

What key metrics do venture capitalists typically look for in startups?

Venture capitalists often focus on metrics like customer acquisition cost, lifetime value, revenue growth, and market size.

Can you explain why customer acquisition cost is important?

Customer acquisition cost (CAC) is crucial because it helps VCs understand how efficiently a startup can attract new customers relative to its spending.

What about revenue growth? How do VCs assess that?

VCs look for consistent revenue growth as it indicates market demand and the startup's ability to scale. They often analyze growth rates over time.

Are there any specific benchmarks VCs use for these metrics?

Yes, benchmarks can vary by industry, but generally, a CAC to LTV ratio of 1:3 is considered healthy, and a monthly growth rate of 10% is often targeted.