Ankur Bansal

The most 𝙤𝙫𝙚𝙧𝙡𝙤𝙤𝙠𝙚𝙙 👀 part of a 𝗴𝗼-𝘁𝗼-𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 and how to 𝗳𝗶𝘅 𝗶𝘁 🔧 (𝘁𝘂𝘁𝗼𝗿𝗶𝗮𝗹 + 𝘁𝗲𝗺𝗽𝗹𝗮𝘁𝗲) 👇 Many of the go-to-market frameworks I’ve seen gloss over this key step or miss it entirely: 𝗬𝗼𝘂𝗿 𝗯𝘂𝘆𝗲𝗿’𝘀 𝗽𝘀𝘆𝗰𝗵𝗼𝗹𝗼𝗴𝘆. Why it's important: 95% of our purchase decisions take place unconsciously + emotionally (Harvard study) - despite this, we sell almost exclusively to the rational side. If you want to market and sell most effectively, you need to be able to appeal to both rational 🧠 and emotional ❤️ minds. That's what knowing your buyer's psychology does for you. Specifically, you need to understand: → 𝗧𝗵𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘄𝗵𝘆 𝘆𝗼𝘂𝗿 𝗯𝘂𝘆𝗲𝗿𝘀 𝘄𝗼𝘂𝗹𝗱 𝗯𝘂𝘆 → 𝗧𝗵𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘄𝗵𝘆 𝘁𝗵𝗲𝘆 𝘄𝗼𝗻’𝘁 → 𝗔𝗻𝗱 𝘁𝗵𝗲 𝗰𝗵𝗮𝗻𝗻𝗲𝗹𝘀 𝘁𝗵𝗲𝘆 𝘁𝗿𝘂𝘀𝘁 𝘁𝗼 𝗺𝗮𝗸𝗲 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀 I like to break it down into 𝟴 𝗰𝗼𝗺𝗽𝗼𝗻𝗲𝗻𝘁𝘀: 1. Jobs to be done 2. Decide to search triggers 3. Decide to purchase triggers 4. Pre-solution objections 5. Post-solution objections 6. Alternatives 7. Emotional Fears 8. Their most trusted channels 👉 In the video below, 𝗜’𝗹𝗹 𝘁𝗿𝗮𝗶𝗻 𝘆𝗼𝘂 𝗼𝗻 𝗮𝗹𝗹 𝟴 so you can make your 𝗚𝗧𝗠 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝟭𝟬𝘅 𝗺𝗼𝗿𝗲 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲. ___ Btw, I'm using a 𝗚𝗧𝗠 𝘁𝗲𝗺𝗽𝗹𝗮𝘁𝗲 I shared recently. 👉 𝗪𝗮𝗻𝘁 𝘁𝗵𝗲 𝗙𝗥𝗘𝗘 𝘁𝗲𝗺𝗽𝗹𝗮𝘁𝗲? I distilled 𝟭𝟯+ 𝘆𝗲𝗮𝗿𝘀 of my go-to-market experience as a CMO/VP/Head of Product into it. Simply: 1. 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 with me     ❗don't miss this step, I can't send you the post without :) ❗ 2. 𝗟𝗶𝗸𝗲 this post 3. 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 "GTM" below And I'll share it with you :) Plus all my future training videos on it. ___ So why am I doing this? → Help better define what a GTM strategy consists of → Help others get a head start building theirs → Get your feedback to make the template better :) So, what are you waiting for? 😎 __ ✍️ 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 with me, 𝗹𝗶𝗸𝗲 the post and 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 "𝗚𝗧𝗠" to get the template. ♻️ 𝗥𝗲𝘀𝗵𝗮𝗿𝗲 if you found valuable (thank you 😍) #B2B #B2BMarketing #B2BMarketingStrategy #GoToMarket #Marketing #SaaS #Enterprise #BrandAwareness #DemandGen #LeadGen #Sales #Data #ROI

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Market size slide often misses the mark due to a standardized approach by pitch coaching. This template mandates the inclusion of TAM, SAM, and SOM in three bubbles. You can find such templates all over the internet. 👀 Everywhere I found that entrepreneur claims “Our global TAM is $X B, but we are going to start in a certain part where our SAM is $Y B. And we project that our SOM is $Z B” It’s clear why entrepreneurs try to pump up their market size. They’ve been told that VC only interested in unicorns, and so they assume that the best way to become a unicorn is to go for the largest market. The thinking is that it's easier to get 2% of a very large market than it is to get 20% of a smaller market. So, they search for market data that allow them to claim that their TAM is $56B, or $256B, or even better, $2.5T. When this slide appears, most investors chuckle. Investors generally don’t give any credence to the market size. We may still ask founders how big their target market is, but the point is to see 'how founders think about segmentation, not to rate the startup based on how big they think.' 💡 Savvy investors prefer startups go after a market that doesn't yet exist. Better to create the market than try to unseat established competitors. Rather than claiming that you can disrupt a existing market, what’s more relevant and compelling is how you answer questions such as: 👇 1. Who are your target customers? 2. How will you reach them? 3. How many can you reach? 4. How will you convert them? 5. How many can you convert? 6. How will you onboard them? 7. How much will that cost? 8. What is a customer worth? 9. How many customers will you acquire this year,Next year,The year after? Most investors want to see market opportunity, not market size. They need to see that you understand more about your approach of reaching & onboard customers. Founders should build a bottom-up model that demonstrates how you will build a big, profitable, customer by customer business. Don’t suggest that your focus is on acquiring market share in a large market. 🙆‍♀️ We’ve heard several pitch on wearable technologies for dogs. They claim - there are 90M dogs in the US alone — at $9.95 a month subscription, that’s a $10B market! But truth is It doesn’t matter if there are only 20M or 200M dogs. What matters is how many dog owners the entrepreneur can convince, one by one, to sign up for this service. Define your target precisely, like "urban professionals, 25-35, earning $80,000+, active Instagram users, and dog owners." Entrepreneur should stop pitching the typical market-size slide. Instead, they should show investors that they understand the market opportunity customer by customer.💡 Check out my free newsletter for more insights: https://lnkd.in/dKZQKHg2 . #startups #funding #fundraising #founders #investors #VC #angelinvestors #founder #fund #money #runway #marketsize #market #entrepreneurship #entrepreneur #customers

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Want to exit as an early-stage founder? Yes, it is possible. But it requires a different approach to typical M&A dealmaking. A bit of context… I get 5-10 messages per week from relatively early-stage founders (traction, but not massively profitable yet) who are looking to exit. There are many reasons why - one of several projects, need more stable finances, tapped out and unsure what to do next. Etc. This also applies to relatively small businesses (sub-£5M revenue), owner-operated with a good team where the motivation may be a life-style change or retirement. Now. To be blunt and honest, in 90% of cases there isn’t an exit path - usually because of mis-match in expectations. (Eg: “We’re just one small investment away from building a $BN+ company”) But. Most of the time you can salvage a £1-10M outcome over a 12-36 month period. How? By treating it as an investment case to deliver an outcome for a specific target company. For example: You have a software product that helps insurance companies manage supply-chain risk. Let’s say the business does £500k revenue and covers costs. Your average M&A Advisory would try to sell the company based on the revenue/EBITDA and (after many months of false hope) fail to do so. They will get offers - but rarely ones you want to accept. My advice - and what I always recommend founders / owners do below 1M EBITDA - is to approach specific targets with an investment case to deliver outcomes. For example: Making / saving a target insurance company Z benefits over an agreed timescale with milestone payments. Becuase taking supply chain risk. This is a multi-million, even billion, sized problem that all wrestle with - and invest significant CapEx and OpEx into annually. If you can solve that - or deliver X saving … you get Y. Sounds fair, no? This is a very standard deal in enterprise consulting land. And beats shutting the venture down and feeling like you’ve failed. No. It’s not the all-cash deal from Google. Yes. It will require work to implement. Yes. It is a viable path for most owners / founders to realise a good return for creating value in a relatively de-risked way. See. What many founders / owners overlook is that the most valuable thing they have created isn’t IP … software … their service offering … etc … It’s actually their understanding of the problem, how to solve it, and a team who can solve it. So. If you are in this situation and looking for an exit. But aren’t really acquirable yet, why not give this a go? First step is putting together a short-list of targets who you might approach and are already investing in the problem (bigger is better). Hope useful. I wish someone had given me this advice on the dozens of early-stage ideas I walked away from over the years! #exitstrategy #founder #openequity

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Unveiling the Numbers: Key Financial Ratios for VC/Angel Investor Due Diligence Financial due diligence is a crucial step for VCs and angel investors before diving into an investment. But with mountains of data, where do you start? Financial ratios are your compass, offering a clear view of a startup's financial health. Here's a breakdown of the essentials: Liquidity & Efficiency Ratios: Current Ratio: Measures a company's ability to meet short-term obligations (Current Assets / Current Liabilities). A healthy ratio indicates sufficient resources to cover upcoming bills. Quick Ratio: Similar to the current ratio, but excludes inventory (Current Assets - Inventory / Current Liabilities). This provides a stricter test of immediate liquidity. Profitability Ratios: Gross Margin: Shows the percentage of revenue remaining after accounting for the cost of goods sold (Revenue - Cost of Goods Sold) / Revenue). A higher margin indicates better cost management. Profit Margin (Net Income Margin): Reveals the portion of revenue remaining after all expenses (Net Income / Revenue). A rising trend signifies increasing profitability. Solvency Ratios: Debt-to-Equity Ratio: Compares a company's debt financing to its shareholder equity (Total Debt / Total Equity). A lower ratio suggests a more balanced capital structure and less financial risk. Investor-Specific Ratios: Return on Equity (ROE): Measures the profitability generated from shareholder investment (Net Income / Shareholders' Equity). VCs and angels look for a strong ROE to justify their investment. Price-to-Earnings Ratio (P/E Ratio): Compares a company's stock price to its earnings per share (Market Price per Share / Earnings per Share). A high P/E ratio might indicate future growth potential, but needs to be considered alongside other factors. Remember: Ratios are best used comparatively. Analyze trends over time and benchmark against industry averages. Don't forget to consider the qualitative aspects of the business alongside the numbers. By wielding these financial ratios, you'll be well-equipped to navigate the due diligence process and make informed investment decisions! #VC #AngelInvesting #Startups #FinancialDueDiligence #FinancialRatios #InvestmentThesis #StartupMetrics #privateequity

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Zepto raises $665 million at a $3.6 billion valuation. Here's why this raise is exciting for the Qcommerce space and startup ecosystem: Zepto's repeated fundraising success is impressive. > Pioneered the 10-minute commerce game. > Reached $1 billion GMV in under 2 years. > Founders are among the youngest in the startup world. > Built an exceptional team quickly. > Raised significant funds despite strong competition from Swiggy, Blinkit, BBNow, and others. > India is leading in aggressive Qcommerce growth. Reflecting on my TinyOwl days in the early FoodTech space, competition was fierce, and investors were cautious. However, things are different now: > Markets have scaled, unlocking multi-billion dollar opportunities. > IPOs are now viable, even for third or fourth ranked players with strong financials. Investors may feel relieved, but the Qcommerce space will remain highly competitive for the next few years. Consumers, meanwhile, are spoiled for choice. Interesting times ahead.

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You might disagree with me but: Having your partner as a co-founder is great. I talked to Vivien Bresson about this a while back on my podcast. Vivien and her husband have co-founded multiple companies. They love building startups together. I got some mixed reactions on this topic after releasing the podcast. Some people said they couldn’t imagine working with their partners. Mixing personal and business seems like a no-go to them. But in my personal experience, working with your partner is great. When I met my wife in Toronto, she was a beauty technician at a Korean Beauty Salon. Her clients loved her and always had ideas on improving the business, but the owner always objected. She was frustrated. I hated seeing her initiatives constantly being shot down and wanted her to be free to implement her vision. So we did our own thing. She quit her job and we set up her own beauty salon. We thought out the entire game plan on a month-long trip to Ko Pha Ngan island in Thailand. It was pretty simple: • She keeps doing what she does best: Making clients happy. • I run some digital marketing and operations in the background. We came back to Canada and got to work - and it was a mega success. She grew it from a small salon with three staff to having two locations and 12 full-time employees. • Top rated on Google. • Clients were raving about it. • Both salons were constantly packed. This isn’t supposed to be a brag about how good we are at building beauty salons. (even though we are.) It’s a reminder that building a business with your partner can be extremely fulfilling, while it might be a relationship test at times. 2 weeks ago, we visited Ko Pha Ngan island again to reminisce about the time we planned out the business together. There’s something about that island that gets us thinking about business and let’s just say - there might be something else in the works. Stay tuned…

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There are only three ways to trick an investor: Lies, Damn Lies and Gross Margins! The usual SaaS startup looks like this: Sales = 100% COGS = 25% So, the Gross Margin is 75% And, indirect costs: R&D = 35% S&M = 50% G&A = 15% So that’s a 25% loss Or 25c of every $1 revenue. But a new startup is not a big company, so perhaps this analysis is too harsh. Let’s look at a better test. A darling of the SaaS era is Hubspot. For many, it doesn’t get any better. So, let’s take a look at their revenue vs costs unit economics. Sales = 100% COGS = 15% So, their Gross Margin is 85% Now, let’s look at the indirect costs R&D = 30% S&M = 50% G&A = 10% So net loss of around 5%. Not bad. But a loss is a loss. Someone is bound to troll me with a ‘Free Cash Flow!’ comment. Or blame GAAP! But profit is profit. So what? I hear you ask. The three D questions: 1. Design  2. Discovery  3. Distribution Design is the R&D. Discovery and Distribution: Sales & Marketing and costs of actually running the product. With SaaS, the cost of delivery / running the product was negligible. But, in Ai, these costs can be, let’s say, a crippling 45% Sales = 100% COGS = 45% So, their Gross Margin is 55% Now, let’s look at the indirect costs R&D = 40% S&M = 50% G&A = 10% 45% loss for every $1 revenue Or 45c per $1 So, back to Hubspot. Why is it leading the way in SaaS profit and loss stakes. Has HubSpot got better engineering? …Maybe! Has Hubspot got better Sales & Marketing muscle? …Probably! Has Hubspot got better pricing and packaging? …Yes. Most definitely. 100% Did I say Yes? It amazes me that many rivals focus on copying their: 1. Product  2. Promotions 3. Publicity But very few focus on their: 4. Pricing  5. Packaging In Ai, given the ‘sameness’ of the product and expensive distribution - pricing & packaging may be the only saving grace from profit less prosperity. #ai  #pricing #monetisation #SaaS

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Why more boards need to have a brand strategist For years now I have been consulting LPs, VCs, and Their portfolios Every time we do stakeholder interviews here are the outcomes: - We didn't think of that - This is a much better way to look at it - This will help the company get more market share What leads this to be the case? - My Strategic guidance? Yes. - Interactive Facilitation? Yes again. - Aligned Positioning for brand impact? Bingo! But why aren't the board able to do that? - Well everyone has their key skill - And while they know how to grow - An external consultant can help scale it But that's not it! As a brand strategist, I have helped - Create an audience differentiation and association - Scale growth and profits - Align direction! Both internally and externally This gives the brand a larger vision and a culture to lead it This is why more company boards should have a brand strategist Want one? We have 3 more slots for my advisory portfolio Reach out! Always, Arcui #boardadvisor #brandstrategy #VC #marketshare

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Ask my partners Evan Allen Blair Merlino JT Benton and they'll tell you I'm a glutton for asking and figuring out not just what works, but how things work, and why. Perhaps it's the researcher side of me, but I get uneasy relying on heuristics/patterns without knowing what's causing it, not just for an intellectual curiosity standpoint, but because it introduces uncontrolled risk into the business. Power law is a classic example of this. Sure, it tends to work for large enough funds over a long-enough duration. To the degree that trend holds, everything is fine. If the trend all of a sudden breaks (some evidence suggests that may be happening in real time), then all of a sudden a lot of GPs and LPs are going to get crushed and no explanation or understanding as to why. As studio builders we don't rely on power law. We constantly develop and fine-tune our ventures to learn and master what is driving their value. We are by no means perfect, but in our estimation we're asking the right questions and seeking the right answers versus relying on a trend and hoping for the best.

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More VCs should operate as business angels with their portfolio companies. 🔥 Make your companies a priority over new investments, ⬇️ Be there when your CEOs are down, 📞 Be the one they want to call when metrics are not looking good, ✌️ Show up when they need a sparring partner to brainstorm on their roadmap. Remember, being a CEO is the loneliest job in the world, really, so if you're the one who surrounds them during the full roller coaster ride 🎢, you'll be the one-in-a-million kind of investor everyone is looking for.

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WHAT THE DECK? 🍿 Twenty years ago, startups crafted dense Word-based business plans for investment purposes. Today, landscape-mode slide decks are the standard, prioritizing synthesized information and visuals. Here's a quick guide to the three types of #decks you need for fundraising: 🎬 #Teaser: the trailer. Introduce your project to new investors. 🎥 #Pitch Deck: the movie. Use it in meetings but don’t share it. 🎞️ #Investor Deck: the extended version. Detailed and comprehensive, send it after initial meetings. Stay tuned for more insights on crafting the perfect deck for your startup by subscribing to the #Deckoder by Slide Hackers.

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What do VCs really know vs. what we expect them to know. When should you listen to *anything* we say. For context: * Money is energy. It imbalances relationships. * Our job in simple terms is to make outsized returns for our investors. Full stop. The end. * 90% of European investors have never been a founder (In the US it’s around 40%). The vast majority have never worked in a startup. If I was a founder this is how I’d work with people like me beyond capital: If pre PMF I’d surround myself with people and peers who’ve been there and done it. Appreciating the differences in delivery. e.g. a coach will ask the right questions, a mentor has already done it, a consultant will share an operating manual. Interchange naming conventions for sure, but knowing the differences and what I need over time. *Most* importantly, remembering to fill my cup personally first, at home, with loved ones, friends and family. That’s my foundation. Post PMF - series A/B it’s spreadsheet territory. Coins in and out. Growth into scale. As a founder becomes CEO, and VCs tend to be much more useful, holistically, generally. (Most come from a financial background, most are great with spreadsheets :) However, every VC should be great at: * Getting cash into the business quickly, on fair and reasonable terms that will unlock the next funding round. * Network and access - clients ideally, as well as next stage investors. * Pattern matching portfolio insights and market trends. If Tier 1 or 2, there's also brand value. Just having them on the cap table will open doors (a little silly but for now it is what it is). You wouldn’t go to your plumber for relationship advice.  So know who to go to for what, positively and proactively challenging every sentence. If in doubt ask them, and others around them. All the while being the best filter in the world. If you hear something more than once there’s merit. Trust your gut. But follow the data. And most importantly, if you ever hear a VC say “I don’t know” - that’s when you can start listening. 

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The Startup Pricing Guide By Bessemer Venture Partner A Must-Read Guide for Founders to Understand the Ways to Monetize Their Products and Services. It includes: 1. Where to Start? 2. Companies Wait on Pricing, But Why? 2. Why Does This Matter? 3. How Does the Role of Pricing Change? 4. The Startup Pricing Journey Stage 2: Finding the Right Revenue Model Stage 3: Segmentation of the Customer Base Stage 4: Drive Upsell & Cross-Sell Stage 5: Optimizing Price Pricing is often an afterthought for tech startups, with founders focused more on product development and user adoption. However, pricing is one of the most important decisions a company will make. Startups tend to take a "kick the can down the road" approach, delaying pricing decisions due to factors like an "adoption at all costs" mentality, lack of a multidisciplinary approach, and absence of data Bessemer Venture Partners' team shared a practical approach on how to find the best way to monetize your product/services and how to scale the business model, etc. You can read in attached pdf 👇 👉 Check out my free newsletter for more insights: https://lnkd.in/dKZQKHg2 . #startup #fundraising #venturecapital #funding #fundraising #founders #founderjourney #entrepreneurship #entrepreneur #founderstories #startuptips #sharktankindia #siliconvalley #startups #vc #vcfund #vcfunding #funding #startups #pmf #product #sequoiacapital #pricing #businessmodel

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Here are 45 Test Ideas you can steal from RiverIsland's £500M Website ⚡️ Over the past 4 years, we have done CRO for Germany's top 1% D2C brands, including HelloFresh, SNOCKS, Giesswein, Purelei, and 97+ more. One thing that always helped me to come up with winning ideas is to keep an eye on what market leaders are doing. I recently analyzed RiverIsland's Website for our team. Since I already put together a Figma File, I just decided to share it with all of you. If you want access to all 45 Tests & Ideas: 1. Like this post 2. Comment “Sharing is caring” or "Breakdown Please" And I'll send them to you ✨ #ecommerce #shopify #conversions P.S. Thanks for all the support on my last whitepapers & breakdowns. They have been downloaded more than 7,350 times, and I received more than 975 messages with amazing feedback. 🥰 My goal this year is to create one free & helpful CRO resource every week. The more feedback I get, the better they will become.

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Startup Equity Distribution Guide for Founders. Founders often ask how they should split equity with their co-founders & early employees.... If you search web on this topic, you will see horrible advice, typically advocating for significant inequality among different founding team members. Lot of founders follow this trend because of following reasons: - I came up with the idea for the company - I started working n months before my co-founder - This is what we agreed to - My co-founder took a salary for n months and I didn't - I started working full time & months before my co-founder - I am older/more experienced than my co-founder - I brought on my co-founder after raising n thousands of dollars - I brought on my co-founder after launching my MVP - We need someone to tie-break in the case of founder arguments Founders tend to make the mistake of splitting equity based on early work. All of these lines of reasoning screw up in four fundamental ways: 1️⃣ It takes 7 to 10 years to build a company of great value. Small variations in year one do not justify massively different founder equity splits in year 2-10. 2️⃣ Startups often fail, so the more motivated the founders, the higher the chance of success. Giving founders a larger equity stake can increase their motivation and drive. 3️⃣ Investors view founder equity splits as a signal of how the CEO values their co-founders. Unequal splits can imply that certain founders are not highly valued, which can deter investment. 4️⃣ Dramatic equity disparities can overemphasize the initial idea rather than the team's ability to execute and generate traction. Startup success relies more on execution than the original concept. Equity should be split equally (or near equally) because all the work is ahead of you. My advice : Split equal (or close to equal) equity splits among co-founders. - These are the people you are going to war with. - You will spend more time with these people than you will with most family members. - These are the people who will help you decide the most important questions in your company. Finally, these are the people you will celebrate with when you succeed. I believe equal or close to equal equity splits among founding teams should become standard. If you aren't willing to give your partner an equal share, then perhaps you are choosing the wrong partner. Check out the attached PDF to learn more about how to compensate your co-founders & early employees with equity. It includes 👇 1️⃣ Founder's pie, 2️⃣ Slicing the Founders’ Pie, 3️⃣ Distribution Issues and Consideration of Values, 4️⃣ Stock-Vesting Agreement, 5️⃣ Founder Relative Contribution, 6️⃣ Rules of thumb for founders and employees equity distribution& More. PDF Credit: Frank Demmler . #founders #equity #funding #fundraising #founder #money #vc #investors #angelinvestors #startuptips #rules #employees #venturecapital #fund #entrepreneur #entrepreneurship #tech #investor #startup

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99% of VC will pitch to their investment committee. This is why knowing this is a game-changer: When you get to a later stage in the fundraising process. An investor will have to pitch internally to their IC. All to decide if they want to give you a term sheet. Now... Not everyone in the IC will have seen you before. So a VC has to create an "IC paper" to give a run-down of their thoughts on you and your company. This will have thoughts on why they are excited. And also why they are anxious. This can be a game-changer for how you pitch yourself to investors. Because having a IC paper example to look at before your fundraise allows you to see how an investor: - Analyses you - Gets excited to invest into you - Speaks about your company internally Luckily for you: I am giving an example away for free! All you have to do is: → Like this post → Comment "Memo" → Connect with me And i'll send you 100+ examples of it! Let me know what you think.

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How to Determine If You Have Product-Market Fit: From a16z & Sequoia Capital's Partners. "When the customers aren’t quite getting much value out of the product/service, word of mouth isn’t spreading, usage isn’t growing that fast (spikes in the months where you advertise), press reviews are kind of “blah”, the sales cycle takes too long, and most of the deals never close." - Marc Andreessen. Most startups that have raised ($5-$10 Mn) Series A funding, assume they’ve got a product-market fit, just because they’ve raised funding. They're wrong, why do you think 70% of startups that raised Series A still fail, because the no.1 reason was lack of PMF! You have it ... On a high level, you've found product market fit when you can repeatably acquire customers for a lower cost (CAC) than what they are worth (LTV) to you. - Elizabeth Yin (Hustle Fund) “You can always feel when Product/Market Fit is happening. The customers are buying the product just as fast as you can make it - or usage is growing just as fast as you can add more servers. Money from customers is piling up in your company's account. You’re hiring sales and customer support staff as fast as you can. Reporters are calling because they’ve heard about your hot new thing and they want to talk to you about it.” - Marc Andreessen When product-market fit occurs something magical happens, all of a sudden your customers become your salespeople i.e. they sell for you - Josh Porter. So What metrics to track and analyze, whether you've achieved the Product/Market Fit? We have shared detailed writeup in our recent newsletter, it includes: 1️⃣ Product/Market Fit Metrics for SaaS Businesses - Returning Usage (Day 1,3,7,30 retention) - A Net Promoter Score (NPS) & PMF Score - Paying Customer Renewal Rates or Retention - Growth Rate - Market Share - Customer Lifetime Value (CLV) vs. Customer Acquisition Costs (CAC) 2️⃣ Product/Market Fit Survey By Superhuman founder and CEO Rahul Vohra 3️⃣ Retention and Customer Love Rajan Anandan MD, Sequoia Capital 4️⃣ Do Customers Love You? Net Promoter Score (NPS) & PMF core 5️⃣ What if you don't have a Product/Market Fit? Advice from Y-Combinator partners, Hustle Fund Co-founder and Co-founder, CEO of Mercury. Check out here: https://lnkd.in/dNeNjZ6F . #startups #pmf #founders #investors #vc #venturecapital #startuptips #business #founder #startup #funding #fund #investor #startupfundraising #angelinvestors

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Allocate just released an analysis on a dataset of 253 venture funds, with only pre-2019 vintage years being included. The analysis shows a clear negative correlation between high risk / high reward investment profiles and size of venture fund, i.e. the smaller the funds, the higher the performance, but also the higher the risk. Two ways that LPs can mitigate the higher risk of smaller funds: 1. Diversify across more emerging managers, and 2. Invest across vintages with said managers. Here are the details: Small Funds (0-100MM): Mean TVPI: 4.3 Standard Deviation: 2.4 Median Portfolio Companies: 26 Mid-Sized Funds (100-250MM): Mean TVPI: 3.6 Standard Deviation: 2.0 Median Portfolio Companies: 24 Mid-Large (250-500MM): MeanTVPI: 3.0 Standard Deviation: 1.2 Median Portfolio Companies: 35 Large (500MM+): Mean TVPI: 2.7 Standard Deviation: 0.9 Median Portfolio Companies: 43

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