To successfully pitch a startup, founders must have a deep understanding of critical financial metrics. Many founders get rejected not due to personal shortcomings but because they lack insight into their unit economics. The article emphasizes the importance of understanding foundational data points such as burn rate, customer acquisition cost (CAC), and lifetime value (LTV). Knowing these numbers allows founders to present their business's viability clearly to potential investors, who are primarily interested in the sustainability and profitability of the venture.
If you spend $80K a month and you have $400K, you have 5 months of runway. Investors want to know when the plane runs out of fuel.
If your CAC is higher than your LTV, you're not building a business- you're just sponsoring users. Aim for LTV to be at least 3x your CAC.
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