Finding Product Market Fit 6/6 — Getting Ready for Series A

  1. Your unit model needs to work. Principally, COGS should be a maximum 50% of your Revenue, and LTV/CAC ideally is 6:1 or better. The latter usually happens if you have 80% organics unless your paid is atrociously expensive. The COGS item is important, because you really just need to net out COGS when you think of revenue. That means that R&D, Admin, and CAC need to come out of the remainder. 50% is just a rule of thumb on the maximum COGS.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
John Danner

John Danner

Co-founder and CEO NetGravity, Rocketship Education, Zeal Learning, Dunce Capital. john@danners.org https://dunce.substack.com/