Business Analysis

Apr 30 2020

Revenue Elasticity of Burn – Learnings from a Crisis

Startups are adjusting “burn,” or the net amount of spending in a given month, as they stare down the COVID-19 crisis, and they may want to reflect on what the marginal spending they are now cutting was achieving. A high-growth, strong LTV:CAC, fast payback startup can mask lots of inefficient spend. This crisis is exposing some of that existing bloat as companies are adjusting burn in real-time. “Wait, we didn’t ...
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