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Magic Number = (Change in revenues between this quarter and the prior quarter) * 4 Marketing expenditures in the prior quarter VC's usually like to

Magic Number = (Change in revenues between this quarter and the prior quarter) * 4

Marketing expenditures in the prior quarter

VC's usually like to see a magic number of .75 and above preferably more than 1.

i)Under which conditions is the magic number versus CLV or the LTV/CAC ratio more

valuable for assessing the health of a company's customer portfolio? What are the trade-offs of managers focusing on one metric vs. the other?

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