The Language of Investors
Understand these metrics to have a credible conversation with any VC.
The total cost of sales and marketing to acquire a single new customer. A high CAC can kill your business.
Total Sales & Marketing Costs / # of New Customers
The total revenue you can expect to generate from a single customer over the lifetime of their account.
Avg. Revenue Per Account / Customer Churn Rate
The golden ratio for SaaS. This compares a customer's lifetime value to the cost of acquiring them. A ratio of 3:1 or higher is considered healthy.
LTV / CAC
The percentage of customers who cancel their subscriptions in a given period. High churn is a leaky bucket that makes growth impossible.
(# Customers Lost / Total # Customers) * 100
You don't need a data science degree to understand your business. By tracking your marketing costs, income, and cancellations, Founder's Wizard can automate the calculation of these critical metrics.
- CAC: We sum your 'marketing' category expenses and divide by your new customer count in a given period.
- LTV: We analyze your subscription income and churn data to project customer lifetime value.
- Investor-Ready Reports: Generate reports that showcase these metrics, so you walk into investor meetings prepared and confident.
Walk Into Your Next Pitch Prepared
Know your numbers cold. Founder's Wizard gives you the data and the reports to prove you're building a financially sound, high-growth business.