Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canadian VC Basil Peters argues that the cornerstone of an entrepreneur's early exit strategy involves minding just four metrics: Revenue Per Customer, Gross Margin Per

Canadian VC Basil Peters argues that the cornerstone of an entrepreneur's early exit strategy involves minding just four metrics: Revenue Per Customer, Gross Margin Per Customer, Customer Lifetime, Cost Of Customer Acquisition.

Basil Peters argues that this is the best of times for entrepreneurs because, according to recent North American statistics:

  • friends and family provide much more funding than is generally recognized
  • angel investors are gaining ground against venture funds in startup finance
  • the typical liquidation event is a merger or acquisition averaging a low sum of $20 million

How much is a customer worth? How much does it cost to acquire an additional one? This is the focus of Peters' plan for a successful early exit when the business model is yet to show any profit. However, investors will also have to consider other factors. Which factors are not covered in Peters' analysis?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

8th Canadian Edition

007133887X, 978-0071338875

More Books

Students also viewed these Finance questions

Question

What do you like most about the organization?

Answered: 1 week ago

Question

When do you think a hiring decision will be made?

Answered: 1 week ago

Question

Where in the hiring process are you?

Answered: 1 week ago