Question
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?
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