Fundingstack’s Post

VCs: Evaluating Growth in Startups Is Critical Growth hacking isn’t just a buzzword—it’s a set of proven frameworks that help VCs assess startups’ scalability and long-term potential. In his guide for Andreessen Horowitz, Andrew Chen shares insights on: 1. Acquisition Loops: How durable and repeatable is the startup's user acquisition? Learn from examples like Facebook, Google, and Pinterest. 2. Engagement Loops: How effectively do startups retain users and drive ongoing engagement? Metrics like DAU/MAU and retention curves offer key indicators. 3. Growth Quality: Understand the importance of leading indicators over lagging metrics like CAC and viral loops, helping to pinpoint scalable, sustainable growth strategies. 4. Platform Risks: Look beyond acquisition; evaluate the defensibility and longevity of growth on external platforms. For VCs, understanding these loops and metrics can transform how you evaluate investment opportunities. Read the full guide below to dive deeper into growth-focused due diligence.

Yaswanth Vepachadu

Founder, Innovator in Carbon Neutral & ESG, Startup Mentor

3mo

This guide on evaluating growth in startups is crucial for VCs! Understanding acquisition and engagement loops, metrics like DAU/MAU, and platform risks can truly transform investment evaluations.

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