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.
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The Foundation of Startup Success: Clarity Before Growth Many startups rush to scale, but here's a hard truth: If your homepage can't clearly explain your product, no amount of growth hacking will save you. It's a common pitfall - companies pour resources into expansion without truly understanding their product's value proposition or developing a robust go-to-market strategy. This approach is akin to building a house on sand. Remember: A compelling message and a scalable plan are prerequisites for effective marketing. Without these, your ad spend is merely a costly lesson in futility. Before chasing growth, ensure you can articulate your product's value succinctly. Your homepage should be a clear, concise showcase of your offering. Only then can you build a go-to-market strategy that resonates and converts. Invest in clarity first. Growth will follow. #StartupStrategy #ProductMarketing #GrowthHacking #GoToMarket
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I would like to play a game. If your pitch deck, outreach message, or even your daily vernacular includes these phrases, assign yourself a point: Disrupting X Democratizing X Revolutionizing X AI-enabled AI-enhanced Founder-led Paradigm-shifting technology Massive TAM Game changer Low-hanging fruit Out-of-the-box thinking Synergy Bandwidth Growth hacking Value-add Scalable solution Leveraging resources Best-in-class Next-gen Now, tally up your points and let’s see what you’ve scored: 0-2 points: Congrats! You might actually have a unique idea worth listening to. Investors will appreciate your refreshing take. 3-5 points: You’re teetering on the edge of cliché. It might be time to reconsider your language—maybe dive into some actual specifics instead of buzzwords. 6-8 points: You’re swimming in the sea of startup jargon. At this rate, investors will need a lifeboat to navigate your pitch. Time to tone it down and focus on clarity. 9 points or more: Welcome to the Hall of Clichés! You’re officially a walking startup buzzword bingo card. Maybe consider a career in meme-making instead? Let’s keep it real and relatable—after all, investors are human too (at least some of them). #startup #founders #venturecapital
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The most common phrases in the startup world. What you think they mean vs. what they really mean. "We're pivoting": What you think: We're changing our strategy to better align with market demands. What they mean: Our initial idea failed, and we're scrambling to find something that works. "Runway extension": What you think: We have secured additional funding to extend our operational timeline. What they mean: We're burning cash faster than anticipated and desperately need more funds. "Growth hacking": What you think: We have innovative strategies to rapidly grow our user base. What they mean: We're trying everything and hoping something sticks. "Minimal Viable Product (MVP)": What you think: A basic version of our product to test market viability. What they mean: A barely functioning prototype we're rushing to launch. "Scalable solution": What you think: Our product can handle increasing demand with ease. What they mean: We're praying our infrastructure won't collapse as we grow. "Disruption": What you think: We're introducing a groundbreaking product that will change the industry. What they mean: We're claiming to be innovative without solid evidence. "Burn rate": What you think: The rate at which we're spending our funds. What they mean: We’re spending money like there’s no tomorrow, and we’re getting nervous.
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What are your thoughts on this? For? Against? Don’t care? Founders love to talk about their companies… but only when they’re ready. More and more are choosing to stay in the dark — erasing company names from LinkedIn, creating mysterious almost-blank websites and ignoring journalists' emails — and build in stealth. The number of people working for startups in stealth — where an early-stage company focuses on developing a business in (relative) secrecy — has more than tripled in the past two years, according to LinkedIn data. https://lnkd.in/gDRDbnNb
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Startups leave digital footprint on the internet. Even before you start thinking about fundraising, parsers of startup databases (Crunchbase, PitchBook, CBInsight.com, Tracxn, Dealroom.co, etc.), as well as VCs, will find your startup and add it to their CRMs. That is why I recommend keeping up-to-date information about your team and your startup on LinkedIn. This will allow you to receive incoming calls from investors. You can also use the digital footprint to gather more information about your competitors. Today, I want to share my article on how VCs use data. I hope the information will be useful. https://lnkd.in/dsP9ky-K
Data-driven VC. Why it is important for startup founders.
blog.i2bf.com
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Join us tonight, Sept 23rd at 4:30 pm PDT / 7:30 PM EDT. Are you an aspiring early-stage investor looking to understand the complexity of investing in startups? I’m excited to invite you to the Startup Investors Lab —a program designed by my friend, Randy for both beginner investors and emerging startups eager to learn, network, and grow. This unique program is designed to demystify the process of evaluating and investing in US high-growth tech startups. It provides an enriching environment for both business professionals learning to invest and entrepreneurs seeking to attract investment and grow their businesses. Join us for an immersive learning experience with live webinars, case studies, and interactive discussions. Not only will you gain invaluable insights into early-stage investment strategies, but you'll also participate in a vibrant online community that fosters networking, knowledge sharing, and relationship-building. 🚀 Whether you’re curious about investing yourself in startups or you are preparing your startup for investment success, this program offers the tools and community support to propel you forward. 🔗 Ready to deepen your understanding and expand your network? Join our meeting TONIGHT September 23 for free as my guest, and start transforming your approach to tech startups! Check out startupinvestorslab.com or DM me for more info! #TechStartups #StartupInvesting #Entrepreneurship #InvestmentOpportunity #BusinessNetworking #ProfessionalDevelopment
Learn How to Evaluate and Invest in Fast-Growing Startups
startupinvestorslab.com
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Startups leave digital footprint on the internet. Even before you start thinking about fundraising, parsers of VCs and startup databases (Crunchbase, PitchBook, CBInsight.com, Tracxn, Dealroom.co, etc.) will find your startup and add it to their CRMs. That is why we recommend keeping up-to-date information about your team and your startup on LinkedIn. This will allow you to receive incoming calls from investors. You can also use the digital footprint to gather more information about your competitors. Today, we want to share our article on how VCs use data. We hope the information will be useful. https://lnkd.in/dcHjYS4b
Data-driven VC. Why it is important for startup founders.
blog.i2bf.com
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🦉 72% of founders choose their investors based on their ability to add value to portfolio companies beyond funding. 👆 The “value” we decided to be obsessed with is GROWTH. Why? No matter the type of business, where it is, or who's involved, every startup shares the same goal: they all want to grow quickly. Growth opens up opportunities for success. But the secret to long-term startup success isn't hacking the way to growth but building a solid foundation and a repeatable process. Check out the recent article of Pei-Ran Yu 💡, a Seedstars Growth Partner who explains the tool we created (i.e. control tower) on a Clubhouse example! Thanks, Pei, this was a good read! [Link in the comment 👇] cc Jonathan Attwell, Konstantin Hapkemeyer, Nataly Yousef, Samantha Batista, Charlie Graham-Brown, (Twwo) Pun Jaruthassanakul, Michael Weber, Benjamin Langer
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Startup! Wondering what it means to get funding from an angel investor? This is what it means with #FiBAN: 🎯 Expanded networks and smart money. With experienced angels as investors, you not only receive funding but also receive industry networks and expertise that can help speed up your startup’s growth. 🎯 Faster and safer deal-closing with ready-made templates. Investors and companies receiving funding through FiBAN can utilize our standardized shareholder agreement and term sheet templates. 🎯 Even if you don't get selected to pitch, you'll get feedback to improve for your next application and you can always apply again. We want you to succeed! 🎯300 000k worth of founder benefits. Companies receiving funding through FiBAN also receive 300,000 euros worth of benefits from our partners Aiven, Microsoft, HubSpot, and many more. 🔥 Apply for funding before 1st of August to pitch at our next event: www.fiban.org/apply Miikka Miettinen
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Growth-hacking hard as it needs cross-functional coordination: Sean Ellis https://lnkd.in/dktehwej Download Economic Times App to stay updated with Business News - https://lnkd.in/eK4XZsX #startups #entrepreneurs
Growth-hacking hard as it needs cross-functional coordination: Sean Ellis
economictimes.indiatimes.com
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Founder, Innovator in Carbon Neutral & ESG, Startup Mentor
3moThis 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.